Forensic Securitization Audit Services | SDAudit
Most borrowers never question whether the entity collecting their payments actually owns their loan. That is exactly what lenders count on. At SDAudit, we question everything. Our forensic audit process traces the complete chain of ownership from origination through securitization, and we document every defect we find with the precision required for arbitration and litigation.
Our Audit Services
Mortgage Securitization Audit
Mortgage loans originated between 2000 and 2010 were securitized at a rate exceeding 80%. Many of those securitization transfers were executed improperly, recorded late, or never completed at all. Our mortgage audit investigates:
- Complete chain of title from originator through depositor to trust
- PSA cutoff date compliance and transfer timing violations
- MERS assignment validity and recording gaps
- Note endorsement integrity and allonge authenticity
- TILA and RESPA disclosure violations
- Robo-signing indicators and notary fraud patterns
- REMIC tax compliance and trust eligibility
- Standing defects that impair the lender's right to enforce
Auto Loan Securitization Audit
Auto loans are packaged into static pool ABS trusts and sold to investors within weeks of origination. The transfer chain is short but often defective. After the trust cutoff date, no new loans can be added, meaning a late assignment is a fatal defect. Our auto loan audit covers:
- Trust identification via SEC EDGAR and ABSNet data
- CUSIP-level tranche identification for your specific loan
- PSA cutoff date verification and late assignment detection
- UCC-1 financing statement and perfection analysis
- Servicer authority verification under the governing PSA
- TILA disclosure accuracy and finance charge verification
- Dealer markup and interest rate manipulation review
- Repossession authority and standing analysis
Student Loan Audit
Private student loans were heavily securitized during the 2000s. Federal student loans carry their own set of origination and servicing compliance requirements. Our student loan audit examines:
- Origination documentation and disclosure compliance
- Securitization trust identification for private loans
- Chain of title and assignment validity
- Interest calculation accuracy and capitalization errors
- Servicer compliance with applicable federal regulations
- Income-driven repayment eligibility and servicer misrepresentation
- Statute of limitations analysis on defaulted private loans
Credit Card and Personal Loan Audit
Credit card debt is routinely sold and re-sold through multiple entities before a collection action is filed. By the time a debt collector contacts you, the chain of ownership may have broken down entirely. Our credit account audit investigates:
- Original creditor to current claimant chain of title
- Bill of sale validity and account-level assignment documentation
- Statute of limitations and re-aging violations
- FDCPA and FCRA compliance failures
- Arbitration clause enforceability analysis
- Standing to sue verification for debt buyers
What We Actually Find
These are not hypothetical defects. These are the categories of violations we document in actual client audits.
Broken Chain of Title
The most common and most significant defect. A gap in the recorded assignment chain means the entity claiming ownership cannot prove it. This directly affects standing to foreclose, repossess, or sue.
Late Assignments
PSA agreements require loans to be transferred to the trust before the cutoff date. Assignments recorded months or years after the cutoff are void under the PSA and potentially under state law. We verify every transfer date against the governing trust documents.
Missing or Defective Note Endorsements
A negotiable instrument must be properly endorsed at each transfer. Blank endorsements, missing allonges, and undated endorsements are common and can be fatal to a lender's enforcement position.
Robo-Signing and Signature Fraud
We analyze assignment documents for known robo-signing patterns, including signatories who executed thousands of documents per day, notarizations outside the state of execution, and template-generated signatures.
UCC Perfection Failures
For auto loans and personal loans, the security interest must be properly perfected under UCC Article 9. Gaps in attachment, control, or possession can render the security interest unenforceable.
Our Audit Process
You submit your loan documents through our secure intake portal. We identify the loan type, originator, servicer, and any available trust information.
We search SEC EDGAR, MERS, ABSNet, and trust-level databases to identify the securitization trust your loan was assigned to. We pull the PSA, prospectus, and trust agreement for the governing terms.
We trace every recorded and unrecorded transfer from originator through depositor to trust. Every assignment is verified against PSA requirements for timing, form, and execution.
We examine note endorsements, allonges, notarizations, and assignment signatures for authenticity indicators. Known robo-signing patterns are cross-referenced against our database.
We compare every documented action against the applicable PSA, REMIC rules, UCC provisions, and consumer protection statutes. Violations are documented with specific citations.
Your completed audit report is delivered through our secure portal. Reports include an executive summary, detailed findings, supporting exhibits, and legal citations. Elite package clients receive a signed Expert Witness Affidavit.
Ready to Find Out What Is Really in Your Loan?
Our audits have been used in arbitration, litigation, and negotiation across all 50 states. If your loan was securitized, the chain of ownership may have a defect that changes everything. Let us find it.
View Audit PackagesWhy Predatory Lending Audits Matter
A mainstream look at how predatory lending works and why independent forensic audits are one of the most powerful tools borrowers have to fight back.
Source: Last Week Tonight with John Oliver (HBO)