Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Really?  "The firm is not aware of foreclosures where the underlying foreclosure decision was not warranted."  Goldman is unaware????
That statement should have been taken under oath . . . 
Where are the handcuffs already???

Goldman calls mortgage losses 'immaterial'

Posted by Colin Barr

November 9, 2010 11:38 am

So far, so good on the mortgage crisis, Goldman Sachs says in its latest quarterly filing.

Investors have been anxious about how much various banks could end up paying to make good on problem loans they sold during the housing bubble. Wall Street analysts have produced widely varying estimates of the scale of the so-called mortgage putback problem.

Goldman (GS) wasn't a big residential lender, and its mortgage-backed securities dealings during the bubble years pale in comparison with, say, Bank of America (BAC), which owns the remains of the notoriously reckless Countrywide and Merrill Lynch. Accordingly, Goldman hasn't paid a heavy price for repurchases so far.

To date repurchase claims and actual repurchases of residential mortgage loans based upon alleged breaches of representations have not been significant and have mainly involved government sponsored enterprises. During the nine months ended September 30, 2010, the firm incurred an immaterial loss on the repurchase of less than $50 million of loans.

But the firm, which repeatedly characterized the mortgage issues as "fluid" in its quarterly conference call last month, adds that the bills could start to mount. 

Based upon the large number of defaults in residential mortgages, including those sold or securitized by the firm, there is a potential for increasing claims for repurchases. However, the firm is not in a position to make a meaningful estimate of that exposure at this time.

That sounds familiar. Meanwhile, Goldman continues to reassess the practices of its own entrant in the mortgage business, the Litton loan servicing firm it purchased at the end of 2007 as the market was beginning to crater:

The firm has received a number of requests for information from regulators and other agencies, including state attorneys general, as part of an industry-wide focus on the practices of lenders and servicers in connection with foreclosure proceedings. The requests seek information about the foreclosure protocols of Litton Loan Servicing LP (Litton), the firm's residential mortgage servicing subsidiary, and any deviations therefrom. The firm is cooperating with the requests and is reviewing Litton's practices in this area.

Goldman said last month that Litton had suspended foreclosure sales, though like others Goldman continues to hew to the line that there haven't been any serious missteps.

Litton has temporarily suspended evictions and foreclosure and real estate owned sales in a number of states, including those with judicial foreclosure procedures. As of the date of this filing, the firm is not aware of foreclosures where the underlying foreclosure decision was not warranted.

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The Litton Terror machine rolls on, Blake (aka) Larry Jr, now at the helm continues top withhold information, but the signs of it cracking are beginning to appear, Goldman, is serious about dumping it and soon, its continued and now growing litigation is a future problem and liability that has an huge liability for Goldman, I am pretty sure in light of what is happening in recent months, exposure of Litton's personal liability is reachable now, not to mention all the past victims of Litton.  Mail Fraud, wire fraud, extortion. money laundering, conspiracy,
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I'm certainly living for the day when the curtain is drawn back to reveal the evil Wizard manipulating the controls.  Just want to be sure we all do whatever we can to ensure it finally happens.  The more truth about the fraud that dribbles out into the media, the more optimistic I become, but then the cynicism kicks in and I worry that the powers that be will snap that curtain shut again and continue with their monkey business as usual. It's so disappointing, to put it mildly, that despite overwhelming evidence of the servicers calculated, deliberate and self-serving manipulation of mortgage accounts to the detriment of homeowners and RMBS investors alike, that no one has stepped up to take the bull by the horns and address it. Our elected officials should be shouting from the dome of Congress that fraudsters heads are going to roll.  If I hear one more quote that the housing market will not recover unless foreclosures proceed, I truly will lose my mind.  That is the equivalent of saying that the black market won't recover unless stolen property is fenced quickly. The only way anyone in the USA will ever have actual real property rights (and any confidence in our housing market) is if mortgage servicing/foreclosure fraud is fully addressed, the criminals are prosecuted, the homeowners are made whole again, and legislation is enacted and enforced to protect real property rights.  How are we supposed to guide our children with respect to their prospects for the American dream i.e., home ownership?  The way things stand now, I could not in clear conscience advise anyone to purchase a home.  There is just no way to guarantee clear title, no way for a buyer to know they haven't invested in stolen property.  And just the thought of someone entering into a mortgage with our criminal lending institutions is enough to make me shudder... 
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