A forensic mortgage audit is a review that takes place to ensure that the documents of a loan are legally correct. Commonly, the forensic mortgage audit, which may also be referred to as a loan audit, is used to protect the borrower when a loan is being created. When creating a loan, it is essential for both parties that the loan is created properly. For the lender, a loan that doesn't meet standards can cause significant problems later. As a borrower, its also essential that the loan recognizes the rights you have been granted by law. In a foreclosure, a loan audit is used in the process of creating a loan modification, and even moreso important due to the nature of a foreclosure. A loan audit may be performed in-house by the company providing the loan, but a borrower can also perform an audit to ensure legality or find evidence against a foreclosure. If an audit is used, it will usually check the loan with standards of the FDIC, including the Truth and Lending Act (TILA), HOEPA, and RESPA.