Our financial advisory, due diligence and related services insure that you receive maximum available proceeds from the market for your transactions.
Subprime and Predatory Loan Due Diligence
Subprime due diligence, already dauntingly complex, is certain to become more so as additional laws and ordinances are enacted. States and municipalities have enacted a maze of overlapping and conflicting anti-predatory laws that extend the consumer protections currently provided by the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA), the Truth in Lending Act (TILA), the Homeownership Equity Protection Act (HOEPA), the Real Estate Settlement Procedures Act (RESPA), and a panoply of other federal and state consumer compliance statutes.
It is critical that the originator and the investor keep current with emerging law. They must develop relationships upon which they can depend for reliable legal information and counsel. And they must be in a position to demand the proper degree of due diligence and the due diligence providers who can deliver it. ASG maintains an up-to-date predatory lending watch, which you can refer to for the latest legal developments. Check out our News and Research.
Working with last year's software and hard copy lists of this year's state and local triggers is woefully inadequate to the discovery of predatory lending violations. ASG's software contains programmed federal, state and municipal thresholds, an internal APR formula for recalculating APR on adjustable rate loans, on-line access to HUD's MSA database and updated Treasury indices. ASG's software has been reviewed and approved by Thacher Proffitt and Wood, specialists in real estate, consumer law, structured finance, banking and corporate finance.