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10/4/2014 Program Overview | Mortgage Investors Fraud Recovery 1/4
Program Overview
A Program to Help Property Owners Recover Damages Due to
Fraud Perpetrated on Their Mortgage Loans
50-2-40 Program Overview

Congress enacted legislation on May 20, 2009 to assist
property owners
Public Law 111-21, 111-22
This act is known as the:
Fraud Enforcement and Recovery Act of 2009

Most common investor violations revealed in Federal audit
Frauds and Swindles (18 U.S.C 1341)
FTC Act (15 U.S.C. 45(a) &(n))
RESPA 3500.14 (12 U.S.C. 2607)
31 U.S.C 3729(a)
12 U.S.C. 3336 Appraiser Independence
12 U.S.C 1833 (a) Fines up to $1 million per day ($5m max)
HOEPA Assignee Liability
15 U.S.C 1639(b) Steering
False Oath/Statement (18 U.S.C. 152(2) and (3)
Mortgage/Real Estate Fraud
Bank Fraud (18 U.S.C 1344)
Federal Program Fraud
Investor Fraud

What this is
A monthly payment reduction program for property owners
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September 2014
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(residential and commercial)
Monthly payments reduced by a minimum of 50%
Principal balance may be reduced by up to 50% of current
market value of the subject property
Interest rate mandated at 2% with 40 year amortization
Property owner will not receive an IRS form 1099 for the
principal reduction
Not taxable due to fraudulent items on original loan
No prepayment penalty on the newly settled mortgage
Loan is assumable to new buyer

What this is not
We are not attorneys and cannot render legal advice
This is not a foreclosure defense program
If the foreclosure process has commenced on the property
and at least 30 days remain until the sale is scheduled,
Mortgage Investors Fraud Recovery (MIFR) may be able to
postpone the sale additional fee required
This is not a loan modification program it is a settlement
What is the process
Property Owner completes application and non-disclosure
Property Owner provides latest mortgage statement
Property Owner remits application fee (fully guaranteed)
If the loan is accepted onto the program, Group Trust, LLC
reviews all documents for accuracy and prepares presentation
to Mortgage Investor Fraud Recovery, LLC (MIFR) to complete
the following::
MIFR submits mortgage loan for audit through Federal
If fraud is found on loan then:
MIFR notifies four Federal Bureaus of fraudulent items
contained in loan documents
MIFR contacts Investor, Servicer and/or Trustee with findings
Under Federal law Investor must acknowledge and respond
within 30 days
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MIFR conducts settlement negotiations and receives verbal
and written preliminary settlement from Investor
Pre-settlement documents (escrow instructions) prepared
by escrow company
Typically occurs within first 120 days of application process
After Settlement Agreement is accepted by both parties
Property Owner must make three consecutive adjusted
(new) monthly payments on time
This is referred to as the trial period
At the conclusion of the trial period the loan settlement docs
are released and escrow closes
The entire process takes approximately seven months
Communication guidelines
Independent Agent communicates with Group Trust, LLC
Independent Agent communicates with the Property Owner
Property Owner must communicate with Independent Agent
regarding any issues, questions or the progress of the file
For the convenience of the Independent Agent and the
Property Owner the file progress can be viewed via an online
system maintained by Group Trust LLC

What Does a Typical Deal Look Like
Current Market Value of Property
Current Monthly P&I Payment (3.25% 30 year) 2,245
Current Total Debt (does not matter)
New Loan Settlement Amount
New Monthly P&I
Payment 757
Equity 250,000
Monthly Cash Flow Increase
Annual Cash Flow Increase
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