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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August 30, 2005


Office of the Commissioner of Insurance Mr. Steven Viskupic

Attention: Attorney Robert Luck Room 530

P.O. Box 7873 517 E. Wisconsin

Madison, Wisconsin 53707- Milwaukee, WI 531202


Department of Financial Institutions U.S. Bankruptcy Trustee

Attention: Examiner Kay Westbrock Mr. Thomas King

P.O. Box 7876 P.O. Box 3170

Madison, Wisconsin 53707-7876 Oshkosh, Wisconsin 54903


DOJ/DCI Judge Susan V. Kelley

Attention: Director Mr. Nickles United States Bankruptcy Judge

17 West Main Street 162 US Courthouse

Madison, Wisconsin 53707 517 E. Wisconsin Ave

Milwaukee, Wisconsin 5324581


Wisconsin Supreme Court

Office of Lawyer Regulations

Attention: Mr. Cathy Hahn

110 E. Main St.

Madison, Wisconsin 53703


Cc/ Litton Loan LP, Houston Texas/Wisconsin Law Firm Gray & End, Milwaukee. 



Dear Sirs:


In compliance of the Paragraph 15 of the Mortgage security agreement I am in enclosing the following complaint regarding the illegal and unethical conduct of Litton Loan LP and its law firm GRAY & END for engaging in mail fraud, wire fraud, money laundering, extortion, tax evasion and conspiracy.  I intend to file an action under Paragraph 20 of the Mortgage security agreement.  And make claim under Wisconsin Statue 224.80 (2) and its sub parts.  224.77 (b,c,d,e,h,i,l,m) for violations.  By this letter it fulfills my Mortgage Security Agreement obligations.  As an alleged conspirator to a crime the Law Firm GRAY & END through its attorneys Michael Riley have become a party to the following crimes under 939.05 (b), (c).




Litton Loan LP and GRAY & END are both aware of a number of current Criminal and Civil Racketeering and Class Actions that have been already filed against Litton Loan LP within other states and jurisdictions.  My claim for relief under Paragraph 15 of the Mortgage Security Agreement is being to protect my interests from the criminal, and civil fraudulent activity of the two mentioned parties.  Under Wisconsin Statues 946.80 and all of its sub sections.  And all rights and claims to Wisconsin Statues 946.87 and all of its sub sections.


Under Wisconsin Chapter 224.75 (2) I am requesting copies of all records, documents, emails, and communications required to be kept under this statue as it pertains to my loan.  Be forwarded directly to the State of Wisconsin Department of Financial Institutions, as well as under Wisconsin Chapter 224.75 (3) CONTENTS OF CREDIT AND APPRAISAL REPORTS Including all materials and documents relating to Litton Loan LP, and its relationship with C-BASS, a wholly owned joint venture with MGIC of Milwaukee, Wisconsin.  And Salomon Mortgage Loan Trust 2001-CB4 (Exhibit F)


I am reporting to Office of Commissioner of Insurance under the authority of Wisconsin Chapters 618.50 as a Duty to report the civil and criminal actions of the law firm of Gray & End through its Attorneys and Partners, and Litton Loan LP


Under Wisconsin Chapter 618.39 Litton Loan LP and Gray & End are conspiring to violate the Surplus lines laws of the State of Wisconsin by using "Forced Placed" surplus lines policies upon its mortgage holders at a cost of several hundreds of times of those of the "admitted" insurance companies operating within the law.  Including MGIC that is licensed within Wisconsin and is a Joint Venture Partner of C-BASS, a wholly owned subsidiary of MGIC.  The surplus lines policy being forced placed and sold to Wisconsin residents is misleading and provides no coverage to property owners of Wisconsin, but is a policy underwritten by Lloyds of London (or so it seems) for and behalf of Litton Loan LP.  In other words, Litton is reselling its own liability policy to Wisconsin Residents.  (See attached Lloyds "Evidence of insurance" sheet).


This document was sent as evidence of a "Certificate of Insurance"; however there is "NO" coverage, and the document is fraudulently produced by Litton Loan, without the consent or authority of LLOYD’S.  In apparent violation of Wisconsin Chapter 424.501 (Exhibit A, page 2)

Under 619.39 Personal Liability for violations apply to Larry Litton, Litton Loan LP, and the attorneys of Gray & End are personal liable for the damages that extend back as far as six years.  Additionally Wisconsin Section 424.501 False Misleading and Deceptive Insurance selling has occurred.  Wisconsin Statue 134.10 was violated on numerous times by Litton Loan LP, and forced collections were made through the Law Firm of Gray & End. 




Please find the enclosed documents, records, letters, and copies of post marked materials, there is also enclosed excerpts from depositions from myself and a CHRISTPHER WYATT from LITTON LOAN LP.  (Exhibit C) (Exhibit B: Expert Report)


This is a complaint regarding the civil and criminal conduct of the above company and law firm. The allegations that I am forwarding to your attention show violations of Wisconsin Law, as well as violations of legal ethics. I would be remiss if I did not inform you that I am currently in litigation with LITTON LOAN LP.


Briefly, Several litigation lawsuits have already been filed against LITTON LOAN LP for misconduct in a number of states. Those suits may speak for themselves. I am going to provide documents and records showing a systemic pattern of conduct by LITTON LOAN LP, and its use of GRAY&END to provide "cover" for its illegal activity here in the state of Wisconsin.

One of many actions of misconduct by LITTON LOAN LP is the "Forced Placement of Insurance" as you may see from the attached correspondence I have been billed $3,836.54 in March of 04 and $3,578.35 in March of 05 and at least one other occasion for "Home" owners insurance that I did not purchase or order. The State did not collect or receive the 3% tax that was due from these billings. This is a common business practice of LITTON LOAN and a violation of Wisconsin statue 618.41 Sub (4) and Sub (9) are clear violations of Wisconsin State law. Other subsections also apply, that have been violated. (Exhibit A)


The policy that is being "Forced Sold" is a "SURPLUS LINES" policy, that provides "NO" coverage to the homeowner. I have learned that LITTON LOAN LP does not have any licensed insurance brokers or agents within the state of Wisconsin, and LITTON LOAN LP uses the law firm of GRAY & END to collect the insurance premiums, and "launder" the money through its law firm’s trust account. The homeowner does not receive any declaration sheet showing the stamp as required under Wisconsin statute 618 Sub (9). Nor do we receive any policy showing coverage’s, or exclusions. (Exhibit A) Although requested a number of times.


When not paid by the homeowner after being billed, the law firm of GRAY & END is used to collect the money that is then deposited into the Trust account of GRAY & END and later transferred to Litton Loan LP


The 3% tax that is required to be paid to the State of Wisconsin for the sale of the Surplus Lines policy is thus laundered through the use of the law Firm of Gray & End trust account, and not paid to the state of Wisconsin as required by Wisconsin law by the broker or issuer.




Gray & End, and LITTON LOAN LP are aware of these statue violations, as I have personally discussed them with both parties on a number of occasions over the past two years. (Exhibit A: April 15, 04 letter to Litton)


I have also learned in the course of this investigation, LITTON LOAN LP decides what the premium is going to be, and acts as its own underwriting authority, or broker. As you may already see that there premiums are well over 800% above market prices, and provide "NO" coverage to the homeowner! The homeowner is either forced to pay the insurance bill or as in many cases, (like mine they file foreclosure actions). (Exhibit A)


The use of "Laundering" taxable money due the state of Wisconsin through the collection practices of GRAY & END amounts to extortion by LITTON LOAN LP/ C-BASS and GRAY & END acting under the color of law to avoid the paying of these tax’s to the State of Wisconsin, and the "Forced" selling of these "Surplus Lines" policies to Litton mortgage holders at a substantially inflated rate. (Exhibit G


Under Wisconsin law we are entitled to full recovery of payments. (618.44) And LITTON LOAN LP must assume all risks for the policy period. I am asking the Office of the Commissioner of Insurance investigate this, collect the tax money due the State of Wisconsin, and prosecute those responsible at GRAY & END, and LITTON LOAN LP/C-Bass for this criminal conspiracy to avoid the payment of these tax’s (Refer to K10 for auditing reports from MGIC regarding the Joint Venture with Litton Loan LP as early warning and indicators of misconduct)


The legal ethics, and collection practices of GRAY & END violate Wisconsin law, and there firm is aware that this is a tax violation of Wisconsin law by the collection of this money, and forwarding it to LITTON LOAN LP. Wisconsin Chapter 421.108 (Obligation to act in Good Faith) and 427.105 (2) also apply to the firm of Gray & End.


The second part of my complaint asks the both Insurance Commissioners office and Financial Institutions enforce the law against LITTON LOAN LP and the law firm of GRAY & END for the evading the surplus lines tax’s, selling insurance within the state of Wisconsin without a license, and terminate LITTON LOAN LP license to engage in business within Wisconsin. Collect the taxes paid, and make restitution to those that have had to pay the "Extortion" money. As attached evidence Litton Loan LP has indicated there "Forced Place" insurance is with LLOYD’S. However this document is a forgery, reproduced to give the consumer the appearance of a policy of record. There is no "Authorizing" signature as required for LLOYD’S Certificates of Insurance, and the "Evidence of Insurance" is misleading. This is a fraudulent security document!




LITTON LOAN LP has already violated numerous Wisconsin insurance laws, it has also engaged in wire and mail fraud as a business practice. For example see the attached monthly billing statements, you will note that the statements are most often printed "AFTER’ the due date thus having to incur late fees, and these are mailed by "Bulk" mail, thus making them delivered to the mortgage holder even later than what may be expected. You may note on my "monthly" Statements there are "Fee’s" attached to the monthly billing of OCTOBER, NOVEMBER, DECEMBER, JANUARY, FEBRUARY. Even though repeatedly asked what the fees were for I was never given an explanation to any of them. (Exhibit D)


The written demand for an explanation disappeared with the February payment I made in 2003. (By Certified Check) (Exhibit B: page 26 of the Experts report)


The intentional sending of monthly statements with additional fee’s that are not explained or described is mail fraud. The sending of fictitious billings through the mail by LITTON LOAN LP is well documented in numerous other litigation cases in other states. Wisconsin should close this business down and prosecute the misconduct at both GRAY & END and LITTON LOAN LP. (Exhibit D: note dates printed and sent bulk mail)

In February of 2003 an attempt was made to withdraw money from one of my personal bank accounts without my apparent authority. LITTON LOAN’s Attorney, Mike Riley from GRAY & END disclosed the attempt during recent depositions. There were not sufficient funds and LITTON LOAN LP charged $100.00 me for it. Even though I was current with all monthly payments. The admission of attempting to withdraw money from one of my personal accounts amounts to " Wire Fraud". Litton’s reliance of wording on the back of if is monthly billing statement "Allowing" them to make a one time withdrawal from my "Personal" account is beyond the pale of reason. Exhibit C; pages 15-20)


Attached is a copy of our response to LITTON LOAN’S motion for Summary Judgment against me. As you see in the Law Suit filed, Litton alleges that I did not make contractual payments from December of 2002 through April of 2003. Our response shows that payments were made for October, November, December, January February March and April, and that the further attempt to "Steal" additional money was made in February by the attempt to wire additional money out of one of my accounts. (Exhibit C pages 15-20)




After there motion was denied, GRAY & END continued to prosecute Litton Loans foreclosure against me knowing full well that payments were made, and checks were even cashed by Litton Loan for the period they claimed in the foreclosure action "no contractual payments were made"


It was clear from the deposition of both myself and Mr. Wyatt payments were made for the time frame in which the law suit alleged none were made. In spite of cancelled checks, correspondence with post markings showing payments made, GRAY & END has continued forward with the claim against me for what is now clearly a FALSE claim. GRAY & END, had the opportunity to withdraw or amend the complaint, however failed to do either, as a result of there unethical practices of filing, and pursuing a knowing false claim I have to incur substantial additional legal expenses. (Exhibits B, C, D)


What is clear is that GRAY & END, and LITTON LOAN LLC have entered into the conspiracy to bill, and collect money they are not legally entitled to. The State of Wisconsin has interests here also, by LITTON LOAN LP, and GRAY & END failing to pay the surplus lines taxes, they are intentionally defrauding the state of taxable income it is entitled to and thus evading tax’s due the state. (Exhibit A)


Documents that I possess and have assembled show an "Organized Crime and Corruption Organization" operating within the state of Wisconsin, its tactics of mail fraud, wire fraud, racketeering, extortion, money laundering, and tax evasion are but a part of a larger organization operating within the home mortgage markets within this country.


I am asking the Office of Commissioner of Insurance, and FINANCIAL INSTITUTIONS to immediately begin an "Organized Crime Investigation" into LITTON LOAN LP and GRAY & END. Numerous other states are just now beginning to receive complaints of a similar nature.


The Department of FINANCIAL INSTITUTIONS has authority under Wisconsin Chapters (224.77) to revoke or take other substantial action against Litton Loan LLC authority to conduct business. I ask you to investigate the conduct alleged here within, and take positive action by revoking there authority to do business within the State of Wisconsin, and protect Wisconsin property owners from these "predatory" lenders from operating within our state. A number of other states are now just beginning to understand the level or corruption being committed by these "lending servicing companies". Litton Loan LP and its use of the law firm Gray & End to "hide" behind fails to comply with Wisconsin Chapter 224.075, by disclosing it relationship with its own "Home Insurance" program, operating as a Surplus Lines carrier, doing its own underwriting of premium, failing to provide a copy of the policy, or pay the Wisconsin 3% tax due. As well as Wisconsin Statue 134.10 and 424.501. And, under 425.304 of Wisconsin Statues move the state to fully prosecute those responsible




I also ask that the state of Wisconsin seize the Bonds posted and use the money from the bond to investigate Litton Loan LP/C-Bass’s failure to comply with state laws. The issuance of fraudulent ‘Certificates of Insurance" as evidence of insurance by LLOYD’S is a financial security document. It is fraudulent in both representation and authorization. (Exhibit A page 2)

With regard to the Board of Professional review and Standards for Attorneys, My complaint against GRAY & END is based on two parts, first ethical, and second criminal misconduct.

The unethical action of Attorney Riley from GRAY & END law firm is the filing of a complaint, then finding his facts do not match the complaint he had filed. He had a duty to either amend his complaint or withdraw it. (Exhibits B, C, D)


The "False Authentication" under Wisconsin Chapter (706.06 (4) And Fraudulent Writings under Wisconsin Chapter 943.39 (3). Mr. Riley failed to do either. Knowing full well that "Contractual Payments" had been made from December to April of 2003 as evidenced by checks cashed by his client, and those returned un-cashed by his client. The deposition of Mr. Wyatt from LITTON LOAN indicated contractual payments were also made during the time period in which his complaint alleged none were made. Mr. Riley failed to amend, or withdrawal his complaint, and thus knew his complaint was false, and that he was in violation of Chapter 706.06 (4) in that, payments were made between December of 2002 and April of 2003 and he had personal knowledge of this from the documents, and depositions. (Exhibits B, C, D, E)


However Mr. Riley continues to pursue the claim on behalf of his client in an attempt to hide the Criminal Conduct of his Client who was engaged in Mail Fraud, Wire Fraud, Tax Evasion, Extortion, and other crimes. At the very least he had an ethical duty after learning his client had either lied or misrepresented facts to him that lead him to file the foreclosure action to withdraw as counsel. This has not occurred in part to the size of Litton Loan LP being one of or their largest clients of Gray & End. Wisconsin Chapter 427.104 (c) applies.


The Second part of the complaint is that Mr. Riley, and other attorneys at the law firm of GRAY & END know that they are making collections, and filing foreclosure actions for the collection of money in part from the "Forced" placed surplus lines insurance, and falsified fee’s. ’ There personal knowledge that substantial additional fee’s have been added without cause have gone through the mail thus the committing of mail fraud has been committed with their knowledge. (Exhibit B: page 5 of experts report: Verification of interest and fees computed by Litton Loan)




GRAY&END and its attorneys maybe held personable liable under Wisconsin Statue 618.39 for damages caused by the false reporting to credit agencies by Litton Loan LP that use credit information for the rating of insuring policy’s.


In short, a pattern of conduct is developing. From the original contracts that were sold by New Century were in the terms of a Californian attorney were "Cherry Picked" by Litton Loan, and that the contracts themselves may have been written in such a manor as to defraud thousands of home owners across the country of there equity in there property by and in which the manor the contracts were originally written, then sold.

Shortly after being sold, the entire underwriting department of New Century was dismissed. According again to attorneys I have spoken to from California that are litigating the same or similar matters the conduct is the same by Litton, the servicing contracts were either sent to or purchased by Litton from New Century after being with Ocland Bank for one month, Litton Loan LP then began providing "false information" to credit reporting companies about payment histories of thousands of home owners.


When the homeowner learns of this they usually attempt to change mortgage holders only to find that Litton had so damaged there credit history that changing to a competitive mortgage company is nearly impossible. In the meantime, Litton Loan continues to send out late payment notices, with added fees that they never explain what are for or signed by any company representative. So within a short period of time normally six months, the credit history of the home owner is destroyed, Litton is engaging in the sending of billings with in many cases thousands of dollars in added fees, and then threatens foreclosure actions in odder to collect. (My case exactly) I have spoken to numerous individuals that have either lost their homes or were forced to pay the "Extortion" money to Litton’s attorneys and have been left without legal recourse. Violating Wisconsin Statue 943.30 (1), as they did with me in late February of 2003 when I was forced to pay an additional $527.96.(Exhibit B; page 27 check #25379)


I have recently learned that Litton in their servicing agreements gets to keep any fees or added charges as part of its managing agreements. If this is true, and I assume it is, there is considerable financial motive to force mortgage holders with large amounts of equity in their homes to pay those "Extortion" fees, and or face foreclosure actions, where Litton obtains a windfall from the equity from the sale of the property. (See Solomon agreement) (Exhibit G)




I make myself available to supply any additional documents, records or materials that I possess to support the above claims. I have asked Litton to forward all there documents as required under Wisconsin Chapter 224.75 (2)&(3). These records should support the following. That I made payments for the months of October, and November of 2002, that the checks were received, and that a third check was issued for the month of December of 2002, it is then in the middle of December I received a demand latter from Litton that all my checks should be Cashiers Checks.(Exhibits B&D)


The December check was returned first, followed by the October and November Checks. In the time from late October to the middle of December Litton personal were continually calling my residence and stating they had not received any of my checks.


Shortly prior to receiving the demand letter for certified funds that was dated November 8, 2002, but not post marked until mid December 2002 I had cause to reissue two additional checks to replace the checks for October and November that Litton personal continued to claim they had not received. Upon receiving the demand for certified checks, I had issued two checks certified and sent to Litton, both certified checks were cashed on December 26, 2003; those checks were for December (replacement check for the one they sent back), and January.


I did not have reissued the replacement checks for October and November as there demand letter for certified funds was not dated until November 8th 2002, but not mailed until the middle of December of 2002. On January 23, I forwarded another certified check for the month of February 2003 along with a letter demanding to know why the thousands of dollars in added fees were being added to my monthly statements. (See attached Litton monthly billing statements)


Incidentally you will note these statements are printed near or after the due dates and are sent by bulk mail to ensure they arrive late, in order for Litton to charge late fees each month. However on my statements the amounts of fee’s added in no way could add up to just being late fee’s. My cashiers check, and letter were never cashed, or responded to, however we do know they were delivered to Litton, as the check and or envelope were never returned. (Exhibit B,C,D)


As late as February of 2003 I continued to receive calls from Litton indicating they had not received any payments! Of course this was not true, as they had received at least at least 8 payments by this time, however only cased two of the 8. During one of these many phone conversations in late February of 2003, I was told that if I did not pay an additional $597.00 with my March payment they would foreclose on my home, needless to say I was already miffed by the many contacts via phone, and what seemed there incompetent ability to account for checks or correspondence.


I paid the "Extortion" money in the form of a certified check along with my certified check for the month of March, both checks were cashed. Expecting to have this all ironed out by the end of March I sent the April payment, again Certified Check prior to the due date registered mail.




On April 18th 2003 a foreclosure actions was filed against me, the April check was then held for over two months then returned not cashed. I continued to make monthly payments after the foreclosure action through December of 2003, some checks were cashed and others were not, some were held of months then returned. (Exhibit B&D)

At the end of the year I received the Federal From 1098 showing interest paid, and amount of the remaining balance being $307,240.85, however, when attempting to change mortgage carries again, Litton demand over 359,000.00 within a month of reporting to the federal government (1098) that I owed, $307,000.00 This false reporting to the federal government of money owed under the note violates other Wisconsin Laws, and truth in lending Wisconsin Chapter 421.108 and 425.401. Wisconsin Statue 134.01 Injury to business was also violated when Litton falsely reported payment history, as well as, Wisconsin Statue 942.03 for giving false information of publication the damage to the credit history had prevented me from obtaining loans for business growth, and timely payments. The credit reports from April of 2003 support this claim. (Exhibit B,E,&F)

Sincerely yours,


Gary Wait

1718 Highcliff Ct.

Sturgeon Bay, WI 54235

920 743 8898 Home

262 206 7006 Cell 





In addition of the enclosed complaint regarding Mr. Riley, and the law firm GRAY & END I have spoken with Mr. MICHAEL BINGTSON of U. S. Bank National Association (a party to this action) (651 495 3847). Mr. Bingtson is the "Account Manager" for U.S. Bank National Association that is indicated in the "Servicing Agreement".


Mr. Bingtson stated he was not aware of any litigation, foreclosure action, or any other counter claims or complaints regarding my individual matter. Mr. Bingtson stated he would be checking and getting back to me, as he was concerned that U. S. Bank National Association as Indenture Trustee was a party to this action and he is unaware of any information regarding this matter.


I also spoke with Mr. Jeff Rossi of Wilmington Trust Company (302) 626 6185. Mr. Rossi is the also the Account manager, and works for Ms. Patricia A. Evans Senior Financial Services Officer, also signer to the Servicing agreement, on behalf of Salomon Mortgage Loan Trust. Mr. Rossi also stated he is unaware of any legal action or counter claims made in my litigation. Mr. Rossi stated he was concerned because as "Account Manager" there is a contractual duty to report these matters to him.


It is apparent from the above two interviews that U.S. Bank National Association, as Indenture Trustee, and Salomon Mortgage Loan Trust, were not made aware they were named as Plaintiff’s in this matter, or subject to counter claims (See Mr. Wyatt’s deposition page 25 line 5 thru line 21).


Mr. Riley falsely prepared and filed an action without their apparent consent or knowledge, and has withheld information from them regarding this litigation.

Note the sworn testimony of Mr. Wyatt on page 10 line 4 thru line 12 Page 12. Indicating he is unaware of ownership of the loan. And page 7 line 13 thru page 8 line 4, indicating no one reviewed the complaint prior to its filing.


Mr. Riley had a duty to investigate and determine if Litton Loan had the authority to act independently from others, and without regard to the legal standing of the other named Plaintiff’s.


Also now noted is a two tier billing system. Litton has engaged in a separate billing agreement with GRAY & END, as evidenced in my filing of Chapter 13, Gray & End billed at a different rate than their agreement with Litton, there also is evidence of substantial duplicate billing contained in there filing before the Federal court for legal costs.  


Note: On page 19 of Mr. Wyatt’s deposition (line 12 through 16) these two payments were sent in early March, were "applied". The April payment was returned in June with a letter dated April 15th (see Motion in opposition to the Plaintiffs motion for summary judgment.


Note the testimony and difference between receipt of payments vs. dates Litton chose to "Apply" the payments, is different from Mr. Wyatt’s testimony stating on page 15 line 22-23.


 Sincerely yours,


Gary Wait

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October 5, 2005


Wisconsin Supreme Court

Office of Lawyer Regulations

Attention: Ms. Cathy Hahn

110 E. Main St.

Madison, Wisconsin 53703




Dear Ms. Cathy Hahn:


I have enclosed the correspondence from STATE FARM INSURANCE as requested, I have also enclosed a brief summary that I had prepared for my Attorney’s, and copies of the E-Mails and notes that I had sent, I know others exist, but I did not retain them, I’m trusting both Mr. Vesely and Mr. Baird may have retained those copies.


I spoke with both Mr. Vesely and Mr. Baird, and advised them to co-operate with you. Any documents, pleadings, or notes are all available to you.


I look forward to hearing from you in the near future.


Sincerely yours,


Gary Wait

7318 Highcliff Road

Sturgeon Bay, WI 54235



November 10, 2005


Ms. Rebecca Rebholz


Office of Commissioner of Insurance

125 South Webster St.

Madison, Wisconsin 53707



Response from SWBC of October 3, and GRAY & END of October 18th,


Dear Ms. Rebholz;

I have reviewed the responses provided by both SWBC, and LITTON LOAN LP.

I have noted the following:


Neither Litton Loan LP, Gray & End nor SWBC denied any of the allegations contained within my complaint that was served on Litton Loan LP in April of this year.


Neither Litton Loan LP, Gray & End, or SWBC made any attempt to show they have complied with Wisconsin Law regarding the Surplus Lines Laws.


Neither Litton Loan LP, Gray & End, or SWBC indicated they would comply with Wisconsin Surplus Lines Laws.


Lloyd’s policy has not been "Verified" from any Lloyd’s syndicates, which was the subject of my complaint.


The response from SWBC indicates a different policy than the one represented by Litton Loan LP through their response from Gray & End. It is either incomplete, or different! The attachments are different from that of Litton’s response. Other than the Declaration Sheet and Policy number.


Page 2 of 3


November 10, 2005


Mr. Riley is "conflicted" by responding for and behalf of a company he and his firm are alleged to be in a conspiracy to "Launder" money from charges for these policies from Litton Loan LP.

Please note the new attached enclosed documents from my own closing statements.


Take particular note of the four attempts and changes to sale dates as a result of Litton Loan LP, and Gray & End for information on "Escrowed" accounts. Litton Loan LP, and Gray & End would not supply an itemization of these accounts. Perhaps its just random chance that one of these accounts is very near the amount billed for from 2002 to 2005 for the "Forced Place Insurance”.

It is also noted that three new documents have now been produced by Mr. Riley that were subject to subpoena and requests during my litigation. It is noted that the three documents never before produced, just happen to be related to these claims!


The August 28th 2003 letter, April 22, 2004, and November 29,2004 have never been produced until this complaint was responded to by Mr. Riley! We have also noted that a portion of the letter has been redacted.


How convent that these document now suddenly appears, why were they not produced in the course of our discovery? Or, even responding to my written complaint to Litton Loan LP in April, and again in May of this year, or even after Mr. Riley received a copy of the complaint via E-Mail in July of this year! Of course Litton Loan LP, or Gray & End never did respond to the complaint that is subject to their loan requirements.


Please enforce the Surplus Lines laws as they are written and charge the above for the crimes and violations of Wisconsin’s laws. And lastly collect the tax money owed the State of Wisconsin.

Should you need further information please feel free to contact me direct.


Sincerely yours,


Gary Wait

540 Wisconsin Ave.

Twin Lakes, WI 53181

262 206 7006



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November 12, 2005


Wisconsin Supreme Court

Office of Lawyer Regulations

Attention: Ms. Cathy Hahn

110 E. Main St.

Madison, Wisconsin 53703


Re; Mike Riley & GRAY & END


Dear Ms. Hahn;


Please find enclosed my most recent correspondence; note the newly produced documents (three letters). Also note the enclosed closing documents from the sale of my home.


Its interesting Mr. Riley nor Litton Loan, or SWBC did not deny one of the statue violations cited in my complaint, they totally sidestepped the complaint.


The proof of the "Money Laundering" in contained in the "Escrowed" accounts, the closing agents, selling agents, and myself all asked, demanded, e mailed, and faxed letters of demand, and requests over the months to get either Litton Loan or Gray & End to account for these funds, they never would or did. There is the forced placed insurance money!


Should you have any further questions please feel free to contact me.


Sincerely yours,


Gary Wait



February 13, 2006



4828 Loop Central Drive

Houston, Texas 77081-2226

Cc/ Mike Riley



600 North Broadway

Suite 300

Milwaukee, WI 53202-5099


Re; Mortgage Documents and records


Dear Sir/Ms;


Please provide the following documents and records per RESPA Regulation X. 3500.21(e)(2) (ii).


A complete loan History


Information on the "Forced" placed insurance policy, including, Litton Loan’s written policy or explain it if not written as to when such policies are imposed.


The factual basis for Litton Loan Purchasing such placed insurance,


Please explain my payment history as to why some of my checks were cashed and others were not.


Please explain each and every charge that was imposed on my mortgage up to and including the payoff of the mortgage.


Please provide me with a written copy of the "Original Mortgage" with New Century showing this "Promissory Note" has been paid if full. I have yet to this date not received this copy of the "pay of" per the original contract. And it would appear Litton Loan and New Century are in violation of Wisconsin 706.05 (9) (10).





Gary Wait

540 Wisconsin Ave.

Twin Lakes, WI 53181



March 23, 2006



Larry Litton


4828 Loop Central Drive

Houston, TX 77081


Re; LOAN # 8437642

Your letter of February 22, 2006



I’m still waiting responses to several RESPA requests filed previously. Should I not hear from you within 30 days, I will file liens against LITTON LOAN LP, and Larry Litton Personally as he is to the signer of the Loan Modification.






Gary Wait

540 Wisconsin Ave.

Twin Lakes, WI 53181




April 17, 2006


Ms. Rebecca L. Rebholz

Insurance Examiner

Bureau of Market Regulation

125 South Webser Street

P.O. Box 7873

Madison WI 53707 7873


Re: Your file # 175235


Your letter of February 28, 2006


Dear Ms. Rebholz:


I’m in receipt of the above letter. Obvious I’m again in opposition of the how enforcement actions were NOT taken by the Office of the Commissioner of Insurance.


Mr. Browning’s correspondence directly contradicts documents received by Gray & End, and SWBC to your department. As well as documents submitted by myself.


As twice in the past I have had to pursue statue violations that the OCI has failed to enforce, and twice in the past have succeeded. This I assume will be the third time I must pursue them as an independent citizen.


I’m going to make the following assumption here. If I am wrong please write me or copy me the documents as "Evidence" that the OCI obtained.


The OCI never received a copy of the policy directly from any Lloyd’s representative, or underwriting group from which my complaint was generated, other than Gray & End, and SWBC. And, that the copy of the Insurance policy supplied by Mr. Riley from Gray & End.


The OCI has only received written communication from a person named, STEVEN BROWNING whom represents himself under the title of INTERNATINAL REGULATORY LIAISON DEPARTMENT WORLWIDE MARKTS, for Lloyds of London.


Who is the single source for describing the "Coverage" issues under the policy supplied by Mr. Riley of Gray & End? But OCI has never received a copy of the policy from or through Mr. Browning or any Lloyds representative directly.


OCI has no documents records, or independent "investigation" as to the whom made, mailed, and represented documents from Litton Loan, relative to or subject of my complaint, that have the LITTON LOAN LETTER HEAD, envelopes, and postage meter from that show contradictions of Mr. Brownings claims.


The "Insurable Interests" of properties that are subject to my complaint were Wisconsin properties.

The OCI never investigated the transfer of surplus lines premium out of this state through GRAY & END as indicated in closing statements from the sale of my home in November of 2005, showing $13,709.85


My November 10, 2005 letter was never addressed or responded to by Litton Loan, or SWBC, or Gray & End


If any of the above assumptions are incorrect please let me know as soon as possible.


I would just make a few comments as to each item of the 10 you have taken the time to point out, I will respond to each item as they were indicated in your letter.


Litton Loan letterhead, envelopes, postage meter, and labeled "Insurance Department" were used to mail, fax and email documents and billing showing a policy number. Where and what evidence does the OCI have that SWBC produced, mailed, copied or emailed any of the documents supplied to the OCI through my complaint? Or any documents or evidence that Lloyds Authorized Litton to do so?


What evidence, documents or records, indicate or show that an Authorizing signature is NOT required by Wisconsin Law for Surplus Lines Policy’s


Litton Loan violation of 424.501, the OCI draws a conclusion that "under the contract…" The contract was and is under legal dispute, and subject to litigation, by homeowners, (at least this one), by way of my original complaint filed with Litton Loan in April of 05 disputed this very fact. Please review my complaint in its opening paragraph; I refer to paragraph #15 and paragraph #20. The very contract claims to provide coverage, (Read: Coverages)


"The coverage is not for the homeowner, is not for the homeowner and is not "sold" to the homeowner,…" Where within the policy provided does any of this language appear? The policy supplied to Bob Schmit appears to state coverage does exist for and to the homeowner. This was the same policy that Attorney Mike Riley supplied to OCI also. What language contained within the policy supplied by Mr. Riley indicates the OCI’s conclusion or supports this position? Other than Mr. Brownings representations of the "underwriters" of the contract in his email that he has never produced to the OCI.


Again, reading the policy supplied to the OCI by Mr. Riley on behalf of Litton Loan, where is the evidence, language, or insuring agreements that state, or support this conclusion by the OCI.


The review of the appellate decision of COMBINED INVESTIGATIVE SERVICES vs. SCOTTSDALE INSURANCE supported the requirement for the "Stamp" affixed to the policy sold in Wisconsin. The Surplus Lines were rarely collected by the OCI until after this decision. Additionally, return of premiums paid was required under Wisconsin law. And those premiums were returned for a 5 year period of time, after this decision.


We are in agreement, there is no licensed agent, or broker for the sale of this coverage, so by Wisconsin law, they are in violation, the policy supplied to the OCI by myself, and Mr. Riley is the evidence of those policies.


Gray&End and Litton Loan deny collection insurance premium. Attached to my closing statements were documents showing $13,709.85 in "corporate advances".


This is the manor and method that Litton and Gray& End "launder" out insurance premiums from this state and nearly every other state. Follow this money and you will find the nearly 4 years of premiums being identical to the charges.


Violation of 618.41 (9), Where is the evidence, documents, or statements to support this conclusion? As indicated above, the policy speaks for its self, as do the letters from Litton Loan, and its Law Firm, Gray& End. Coverage is provided under the insuring agreements of the policy to the homeowner. Again, what documents, and where within the policy provided by Gray & End, or Bob Schmidt does the OCI conclude this position that the policy does not supply

coverage to the homeowner?


From what policy, documents or information does the OCI form this belief? The statements from Lloyd’s, Litton Loan and SWBC differ on this issue, as well as written communication from Mr. Browning.


It appears that the OCI admits that Litton Loan is acting as an insurance company, by selling the premiums. If Litton is selling the premiums for a policy, then how OCI explain them not in violation of Wisconsin law?


Litton Loan is tacking on additional fees to billing…. Please see the closing statement showing the $13,709.85, as "Corporate Advances" this is how Litton Loan and Gray & End launder insurance premium Litton Loan and Gray & End have NEVER accounted for these funds, even when demanded by the Title Company, myself, and under RESPA requests. They have refused to respond or account for these funds.


I do think the OCI should review all the documents received, and statements made by Litton Loan Representatives, and SWBC. The policy represented by Litton Loan does not match the information supplied by SWBC, nor the Lloyds representative.


If all the OCI findings were found to correct, would it not be that Litton Loan LP is in reality "Reselling" its own General Liability policy, and merely calling it "Forced Placed". This in, and of its self would be illegal in Wisconsin.


However the Lloyd’s representative never did forward a copy of the policy that was purported to have been sold to Litton Loan through SWBC He only made representations of its Underwriters" whom ever they are.


Would it not be ironic, that during the discovery of current litigation or future litigation that the one million dollar policy with another million in an aggregate limit for a 50 Billion dollar servicing agreement was really developed, owned and managed by Larry Litton, and the owner of SWBC, along with board members of C-Bass, and MGIC? How ironic would that be?


How, from a "Risk Management" position can a two million dollar limit policy provide adequate coverage for a 50 Billion dollar servicing agreement?


And that through this, Wisconsin Residents were defrauded out of 81 million dollars a year from this fraudulent scheme.


At some point in time one must look at the obvious. The evidence does not support documents submitted to the OCI. I ask again, why does Wisconsin even have an OCI? If it does not investigate, and enforce insurance laws against bad insurance carriers, like in the past first Scottsdale, and then American Family Life Insurance, OCI again over looks the protection and enforcement of Wisconsin Laws.


Please review this again, and this time ask me for impute for an investigation, not a white wash. I will be planning to begin litigation within 30 days from this letter. I think personally that the OCI should disbanded and dissolved as a waste of taxpayers money for the state of Wisconsin.


Sincerely yours,


Gary Wait

540 Wisconsin Ave

Twin Lakes, WI 53181


P.S. My complaint must be filed prior to April 24, 2006, and will be filed shortly.

April 17, 2006


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Mr. Mike Riley


600 North Broadway

Suite 300

Milwaukee, WI 53202 5099




Dear Mr. Riley;


I’m in receipt of your firm’s response to my letter, of March 23, 2006. I am also in receipt of some copies of my original note from New Century.


Is this a joke? Because I’m not joking, or fooling around, within the week you and your partners will begin to understand what I am about and have done.


If you and your partners would post a bond in lieu of liens to assure me that the original promissory note I would accept that, however without a bond or the original note indicating it being paid off in full, I’m holding you, your law firm and everyone that touched the money from the sale of my home accountable, and at my discretion file liens against those involved.


April 24 is the deadline I have to file certain actions to preserve my rights, I’m assuring you they will be filed.


I strongly suggest you and your firm work out some deal with the FBI, before we begin taking depositions, I suggest you talk with Special Dave Gore of the FBI, and ask for immunity, and I will give that great consideration on how, whom, and where I’m going to proceed.


Mr. Riley I want that promissory note from New Century indicating its been Paid in Full!

I am doing exactly what I told Larry Litton I was going to do, now I’m doing it! From NYC to CA, MN to Texas litigation files are beginning to be filed, with each discovery request something new is learned on the extent of the fraud being committed. A small time law firm in Milwaukee maybe ground zero for some of the largest litigation in the country. You, your partners, and firm are at ground zero.



Gary Wait

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November 1, 2006



Larry Litton


4828 Loop Central Drive

Houston, TX 77081

Re; QUALIFIED WRITTEN RESPONSE RESPA, request for documents and information

Loan # 8437642


Dear Mr. Litton;


Under RESPA, I am requesting the following documents and information.


Copies of all documents relating to the transfer of title and lien from New Century to C-Bass, including the purchase documents or assignments.


The return of the "Original mortgage note" and Promissory note" signed and executed by New Century. Showing this mortgage was "Paid in full" as required by Wisconsin Statues?


If the above note cannot be located, please identify who currently possesses the original note, the date of transfer from Litton Loan, copies of the Payment received through the Law firm of End & Gray for the loan, and copies of payments made from Litton Loan LP to the Mortgage holder.

On my closing statements from the sale of my home in November of 2005, there were a number of charges, please identify each and every charge, and any documents that support payments for those charges. From the pay off dated 7/26/06, as follows: 


A.) Fax fee $15 to whom and for what was this fee charged for identify by copies if necessary?


B.) Interest Due $55, 858.31, Identify each and every charge for interest, and how it was calculated, from what time period through the sale of the home, identify by month and item charged for.


C.) Quote Fee $15, show within the mortgage contract where this fee maybe charged and what the "Quote Fee" is for.


D.) Recording Fee $15.00 to whom was this paid, and please provide proof of payment, and what was the recording fee for.

Principal Balance, 306.960.45 please identify how this amount was determined for the pay off statement.


Escrow $13,850.16 Please identify each and every charge that assigned to this account, list by date, payment amount and cause for charges.

Total Late Charges $3, 850.16 Please identify each and every late charge, computation tables, and from what period of time.


Corporate Advance $16, 296.25 Please identify each and every charge relating to this, identify by date of charge, amount, and if payments were made to whom, and copies of payments made.


Total Unpaid NSF Fees $125.00 Please identify each and every charge to this itemization,


Please provide copies of NSF checks or supporting documents.


With regard to the LITTON LOAN SERVICING LP Pay off Quote of 8/9/05


A.) Attorney Fees $825.00 Identify to whom these fees were paid, and Supply documents and copies of payments made, Include copies of any retainer’s agreements, per diem agreements, or other contracts made with for the above charges.


B.) Attorney Fees: Civil Litigation $12, 767.00 Identify each and every payment, to whom, and copies of checks and whom they were made payable to, copies of contracts, per diem agreements, or retainers agreements with any and all law firms associated with these charges


C.) Attorney Fees (Objection to Confirmation $300.00), please provide copies of checks, and to whom payments were made, and identify "Objection to Confirmation" please describes what exactly this was for and where within the mortgage contract this fee is allowable. And for

what purpose this fee’s were charged? Any contracts, agreements, or retainers, or per diem payments.


D.) Attorney Fee: Proof of Claim $125.00, provide documents, reports, and copies of payments, and identify for what purpose this charge was made.


E.) BPO FEES; $425.00 identify each and every charge, the amount, and copies of records and payments for these charges, also please describe each and every payment made, to whom, and copies of payments.


F.) Foreclosure Attorney Fee; $645.00, identify each and every charge for this, to whom payments were made, and copies of payments and billings.


G.) Foreclosure Costs $1,193.75, identify each and every charge, by date, amount, and copies of payments made for each and every charge for this billing.


H.) Litigation Fees; $1, 920.00, identify each and every charge, payments made, and to whom, copies of any billings and payments made for these charges.


Recording Costs /Loan Assignment $11.50, identify to whom this charge was paid, and copies of any and all payments and or billing for this charge.


Inspections; $34.00, identify this charge, and to whom payments were made, and any and all documents related to this charge.


Interest Prepaid/Due: $56, 800.22 identify each and every charge for interests, by date, amount, and computations used to determine this amount.


Current Late Charges $2, 944.24, identify each and every charge by date, and amount charged for each date.


N). Deferred Late Charge $905.92, identify each and every charge, the amount, date, and for what purpose these charges were made.


Fees Due: $25.00 Identify this charge, for what it was made for and if any payments were made to whom, and copy of payments and billings.


O.) Escrow Deficit $13,709.85, identify each and every charge made to this account, by date, amount and for what purpose. Copies of payments made and any other documents relating to these charges.


Statement Fee $20.00, identify what this charge was for, to whom it was paid, and any documents or proof of payments.


Please explain why Litton Loan did not provide a timely pay off between June of 2005 and November of 2005. Also explain why Litton Loan did not respond to numerous requests between July of 2006 and November of 2005 for information regarding the pay off statements received from Litton Loan by myself, the realtors selling the home, and the title company.


Explain why Litton Loan is not responsible for the added costs for the months of July, August, September and October mortgage payments and any all associated late fees charged for this time period.


Please identify each and every charge made from July 1, 2005 through November 2, 2005, to this loan number by date, amount, and account, along with any supporting documents, as checks, correspondence, emails, etc


After reviewing the Pay off statements from July 26, 2005, and August 9, 2005, Please explain each and every difference between amounts, accounts, and finally explain why in a letter dated October 12 2005, by you’re Attorney all the above fees and accounts are of different amounts?


Then compare them with the payoff in November of 2005, and explain each and every charge made, by date, amount, and copies of payments made to each and every individual, corporation, and law firm as described in each and every one of the above pay off statements.


If Litton Loan is not the holder of the "Original" Contract made with New Century, please identify the entity that is the holder of the "Original" note made with New Century, with a contact name and phone number. If Litton Loan does not know who has the original note, when were the exact date the note was transferred, assigned, or moved and two who?


Explain why I have not received the "Original Note" and "Promissory Note" back and marked "Paid".


Please identify by date, credit agency, reporting information and reporting method made during the entire time of the above loan being serviced by Litton Loan.


Please explain why Litton Loan is entitled to any legal fees costs and disbursements as a result of the previous litigation after a breach of contract claim, and "Disputed" amounts were made and then deducted from the final pay off from the sale of the home.


Lastly please explain why three letters forwarded to the Wisconsin Department of Insurance indicating that I was not charged for "Forced placed insurance" after our litigation was dismissed, and were not turned over until after a complaint was made to the Wisconsin Department of Insurance, by your companies attorney Mike Riley from the law firm of End & Gray, after a demand for production of documents was made during the litigation?


And, when was the credit issued? After the home was sold?


Please identify the dates the credits were issued, and to what accounts those credits were post to with a full accounting of each account by transaction showing transactions dates. Along with a written explanation of the "Coverage" from the Lloyd’s of London policy that was represented to me as a "Home owners policy".


Sincerely yours,


Gary Wait


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Finally we get to tell it like it is. Why should we have to sugar coat everything to make it digestable to the public and presentable to the judge. I was told by my intial foreclosure counsel not to mention a word of anything like this or it would make the judge angry, and that we would be physically removed from the court at even a hint the lender had done anything fraudulant. My lawyer also told me it irritates the judges in Lake CO. when the borrowers are present at the foreclosure proceedings and insisted I stay out of court and let him handle it.


Thanks Gary!

We finally get to take out these mobsters by telling the truth about their own numbers game


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Over 3k a year for forced placed hazard insurance with no benefit or payment to be made to the borrower?


That is insane.


This whole scam is insane.  Unbelieveable.


I see another hole in the mortgage contract that generally does not protect

the borrower at all.


Since when has it been decided that it is acceptable business conduct

for the servicer to receive payments and "elect" not to deposit and or

cash them.  Just to hold them a few months and return the checks to the borrower creating the "illusion" of default?


The one thing I would have liked to see you do in addition to the other

proof would be to provide a forensic accountant's report analyzing your loan

with the comparison of what you owed and what you were forced to pay

with the bottom line of what Litton fleeced you from servicing your mortgage repayment process.


Instead of ramming through a foreclosure action, you are actually due a refund having overpaid exactly $(insert the figure).


You might want to consider attaching "Best Practices" from the Fairbanks

Capital Case.


These very same issues were investigated by HUD-FTC with the class action

plaintiff Curry.


Best Practices discusses the forced place insurance scam in place with specific languagae how it is to be addressed.


It also discusses how payments are to be applied to principal and interest

and MUST be credited to the borowqers account as of the same day received.  For instance if they receive it on May 1 and hold it until

May 16 to enter it, the date received must be used as the transaction date.


Yes, Litton is NOT required to follow "Best Practices" out of the Fairbanks case but the case was brought against them by the FTC-HUD investigation.


There are quite a few references that HUD officials state they expect all

servicers to abide by these "Best Practices" It starts with Mel Martinez,

HUD Director at the time.  I think his title was HUD Director.


These practices descirbed by you and pertaining to your loan have already

been investigated and determined to be unacceptable by the appropriate

and authorized agents to file suit on behalf of borrowers.


From what I see, you are not making allegations that you cannot prove and you have the evidence to back you up yet your evidence was apparently



I wonder if your presentation of the facts got a little long winded.

My experience in litigation of nearly 30 years is that you have to make

the information you want conveyed, so easy to follow that an idiot

could get it.


I'm not intentionally insulting anyone but long text documents can be a turn off especially where there are complex issues involved.


You've got about 3 minutes to grab their interest.


If I were you I'd lable my attachments as exhibit A B C etc to separate

and make easy for someone reading the material to find what corresponds to the point you are making.


I would put the foreclosure and sale of your house the 1st item mentioned.


2 This is how much money you have been improperly charged by the conduct of Litton and or their agents and representatives.


consider putting a flow chart to show the pattern inserted behind

page 1.


A visual helps people to focus on the points you want to make.


There is one in the legal lounge that shows the exact method of the scam

and it is one page. 


You want the person reading each document to right away draw the conclusion that you have been fleeced out of your home by the actions

of the servicer.  Not only that but your state has been fleeced of

proper fees.  Make a simple flow chart.


I only mean to assist where I can.  I understood your complaints but

how many years have I been doing this? 


Keep it simple.


You should probably have somebody you trust to read over these documents before you send them.


You used manor when you meant manner.

you used there when you meant their.

you used their when you meant there.


Spell check won't find these mistakes.


I've been doing this a long time and I still make mistakes.  I leave out words because my brain is going faster than my fingers.


I leave out letters of a word or put too many in.


I let it sit a day and then go back and recheck it for errors.


The only reason I mentioned this is that I am sure you mean to be taken seriously.  I don't why it happens but some people are spelling nazi's

and their opinion about the writer changes when they find wrong words

or wrong spelling a factor in whether they believe you or not.


I just make suggestions for you to consider.  No worries if you do not agree.

Use what you want, some things or no things.  lol....


I think you have a pretty strong case on these issues assuming you have the proof to back the facts up.


Good luck and thanks for posting your letters.


It is another way to go at them.












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Thank you both Greg and Dee for your comments, when the original complaint was sent to Litton Loan I did not know that Litton was owned by C-Bass and C-Bass owned by MGIC, We now know much more about the "Strategic Partners"


We also learned of the personal relationship between our Governors Doyle and the CEO of MGIC.  And how they both worked together in Wisconsin, (see attached news article)  This is why NO Regulatory agency in Wisconsin has taken ANY action against Litton Loan, I believe!  Cozy Bedfellows!


Just this past week two more suits have been brought against Litton Loan in NC and TN.  More are coming!


A surprise for them? A new legal partnership is being formed to address this very problem in Wisconsin.  I am told Wisconsin Regulators could lose their authority to regulate, and this may and could very well end up in a federal courts shortly.  Wisconsin has a long history of non regulation of the "Surplus Lines" Insurance as the "Forced Placed" insurance from Litton Loan.  Its very ironic that I was billed, for this insurance, then only after the litigation was over, the OCI received 3 letters from its Attorney Riley indicating that I was never billed!  These were never produced during the litigation under discovery, I wonder why? The only explanation possible is they (Litton Loan) manufactured these documents after the fact (litigation) in order to satisfy the Office of Insurance Commissioner.


It is very strange that if the Forced Place insurance that is being placed on tens of thousands of mortgages across this country by Litton Loan using the same Policy number, why is there only one million dollars per occurrence, and another one million dollars in the aggregate? in other words two million dollars for hundreds of millions of dollars of exposure? 


Wisconsin OCI stated in a written letter to me that this policy only provides coverage for the amount of the loan, and to Litton Loan, and of course C-Bass 30 days prior to foreclosure's, so why are those that have paid this PMI, being foreclosed on? why doesn't the PMI insurance for which we were charged pay it? or is Litton defrauding the insurance company LLoyd's and billing us for it? I doubt that, I think when we find the "Names" of this forced place policy we will uncover the real fraud!!!! 


 I have this wonderful picture of a LITTON Employee shown in their advertising of a women that foreclosed on over 1200 homes in one year by herself!!  How many victims are there? If this women did 1200 in one year!  


When the very core of our society our family is attacked, the homes we grow up in, raise our family's in,  and plan on using for either our children or retirement are taken from us by fraud, theft, and greed, and the very regulators that were there to oversee misconduct turn a blind eye, there then can be no radical conduct sufficient to contain the rage one has. 


I made a promise to Larry Litton, I'm keeping it! 


Within a few couple of weeks a major legal group may join our fight bringing not a hundred attorneys but thousands!!!  I am pledged to silence for now, however I can assure you they are looking into this very closely right now.


As a home owner that was foreclosed on twice, who had his credit internationally falsified by Litton Loan, most like BENNY HIBLER was responsible, and being forced to sell my home under duress in order to fight another day. I hope that I can bring them the sleepless nights, pain and suffering they have caused to tens of thousands of families and individuals home to them a hundred times over!  I recall the S&L Crisis when the Federal Government finally waited to long to act, they went after the Officers and Directors of many Savings and Loans for damages.  This is a much greater crisis than that crisis was ever!  The systematic collection of personal information on individuals by a very select group of "Strategic Partners" is unparalleled in our history.  The credit reporting agencies in partnership together, the false reporting by companies like Litton Loan, and I'm aware of several others engaging in false reporting.  The individual personal liability of each and every officer and director must be held accountable for their corporate decisions, and conduct.


The fight to save my home is done, the fight to save yours is on. 


Gary Wait

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Thanks for shedding some light on this topic.


I have often wondered what the heck is the forced placed hazard insurance

I see it as a conflict of interest to force the borrower to pay a ridiculously high price for this insurance and so far as I can recall nobody ever receives

a copy of the policy.


Isn't that a borrower's right to have the insurance policy he/she is paying for.


I wouldn't like that one bit.  I'd be wondering, what are they hiding?


When you purchase your own hazard insurance, you get the policy.

The servicer receives a copy of the summary and of course contend they don't have it even after you supply it a dozen times.


At some point that crap gets old.  Not only old, but unbelievable.


I suppose I dont know all that I should know about this topic but I keep

hearing this ridiculous story a hundred times or more now.


If anybody here ever gets another loan, you'd better suck it up and pay your own taxes and insurance so the only thing that can be in dispute is your

principal and interest.


Back in the old days the repayment process was pretty honest and I've had

an impound account myself.  Meticulous records were kept.  There were

no hidden fees, fines or anything else like that.


Everything was transparent.  If there was an error, I most likely made it but still, I would compare my records to theirs just to make sure.


The stuff you guys are suffering through is just plain unconscionable.

Where do they get off charging over $3,000 for a year's hazard insurance?

Nobody pays that much.


If you requested records during discovery and didn't get them, talk to your attorney about an Order to Appear to Show Good Cause Why Litton should

not be held in Contempt of Court and sanctions awarded.


What would their excuse be?  Sorry, Judge, we needed more time to

create fraudulent documents?  Where have these documents been and why were they not provided timely, I assume you subpoenaed them.


The dishonesty of these servicers is just breathtaking and they get away with it? 


Let us know if we can help with anything.



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Did you receive my last e-mail?? I am trying to help a lady out by taking over her mortgage and catching up with the arrears but now Litton had her mortgage I had to fax an update agreement about the payments and the lady (Thersa Hanson) told me she will have a lawyer which I had to pay 250.00 for draw up the papers and I can move into the house and then they would not have a home in foreclosure no longer. Well now I tried to call Litton directly to Thersa's line and the number has been disconnected. I have faxed about 4 times to ask whats up again with no reply. We are planning on moving this upcoming weekend but until I know what is going on I do not want to move to find out the house is sold or whatever they may be thinking. So if I can help you in any way I will gladly do so and if you have any updates I would sure love them. I was planning on moving our foster care business into this house so if it was just me I wouldn't care I could find another place but with license from the state I want to be very careful.
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You sure write a good letter Gary  Did you get any replies to your request?

Forced placed insurance, Ameriquest charged me 3 time in 1 year for forced placed insurance. That's when I decided I would not make any more mortgage payments to them. I started putting the payments in to a trust account till they would answer questions about the insurance. they never did.

Can they put forced placed insurance on a home after it was damaged by hurricanes?
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Still Fighting
Very interesting reading. Now I know what those corporate advances are, never knew even though they are on my statement. Keep up the fight! I have a meeting with a new attorney on Monday who is very fascinated with my story about Litton.

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4 justice now
Still fighting,

Could you please tell me what state you reside in? Is your law firm licensed to practice law in California. I too have been shopping for a law firm that would be willing to represent me in a law suit against Litton. I haven't had a chance to do much research so far on CA law firms, as my case against Ocwen has taken priority until now.

If anyone else has any suggestions regarding any CA law firms that may be willing to take on Litton, please chime in if you don't mind. I was given one name awhile back but have since misplaced it. Thank-you in advance! for your help.


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I have been rereading some threads and thought this particular one would be good to bump up.

This is in the making with me.  I am being well educated here on my next step in this "game" that Litton has decided to make me a "player" in.

Has anything else come about in this?

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The above information was not posted by me, however all the correspondence and information is correct and the contacts are all done by me.  I don't know who posted the information, however it is all considered public information by me.  And anyone can use it.
Gary Wait
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Wow Gary, you didn't post all of that info?  Someone wanted to make sure nothing got left out and posted it as if it was you?  How thoughtful of them.

Has anything been resolved?

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yeah no kidding I need an attorney too the one I had hired that sat on the case for about a year(collecting retainer fees) & filed a suit is now looking to jump ship & he won't file any of the paperwork that I request. & guess what it's a Federal Suit Central District of California against non other than Litton Loan Servicing!

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Well, Litton has finally decided that I now qualify for a Modification.  Funny how I didn't qualify when I was going through the foreclosure process.  But now that they have stripped me of close to $20,000 of my equity, I now qualify.

Here is the clincher:  The agreement they want me to sign is for a 6 month temporary modification.  It states that if at anytime I am late during this timeframe on a payment, they will continue with the sheriff's auction of my home.

If I abide by the terms, the modification will be considered but I have to call them by Nov 5th.  If there is no modification agreed upon by Nov 5th, they will continue with the foreclosure.

If I didn't have so much equity still in this house, even considering the value of my house dropping and what Litton screwed me out of, I would just walk away!!!

I feel like it's a set-up.  What do you guys think???

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4 Justice Now
Litton like most other so-called "sevicers" plan everything step they take and calculate their every move to provide themselves with the best chance to extort the most money possible, or simply to persuade the homeowner to sign their rights away.  

I certainly won't trust any of the bottom feeding scumbags for even a second. There's no doubt that they are today's domestic terrorists who have done more damage to this country and its citizens then any group from the middle east or elsewhere.

But that's just my opinion.


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I have to agree with 4J Sara, be very careful with a modification. They always put in terminology that only benefits them. Things like indemnification of all prior acts by anyone associated with your loan. You giving up any right to take legal action against any of them, etc.

Also a 6 month agreement is not a modification. It may be some kind of probationary agreement but a modification permanently changes the structure of the loan. Be wary and pay close attention to every word. I know it's said over and over here, but an attorney would be your best bet to advise you of exactly what they are asking you to do and give up.
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Thanks you guys!  Yeah, I hate the turmoil I am feeling about this whole deal right now. 

At one point, I had started to feel ok with walking away.  Now, I don't know what to feel. 

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Up date from the time these letters were sent.
The law firm END & GRAY:  Michael End resigned from the firm, The law firm name was changed to GRAY & ASSOCIATES.  Last October TERRY GRAY surrendered his Wisconsin and Arizona law licenses.  The Wisconsin Supreme Court is continuing its investigation into the law firm and Terry Gray, as well as other agencies.  More on this later.
I have since sued LITTON LOAN, and awaiting trial in July of this year, I also have punitive damages in my trial.  Litton Loan has stalled and changed lawyers three times from the time I filed suit.  In this time frame I have only added information and evidence of all the above information on its lawyers, and "New Working" agreements,  I have also documents showing Litton Loan pre paid two forecloses, and additionally paid nearly 20,000 to lawyers for "Legal Fee's"
More much more to come!
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sorry meant to say "LEGAL REFERRAL FEE'S"  a violation of section 8 HUD

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4 Justice Now

That's outstanding!

I bet you're not on the Litton's Xmas list are you? That said I very much doubt they believe in Christmas anyway.

You're the MAN! and a true Hero!



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Gary:  You and Jack are an inspiration to us all!

Best of luck in this legal battle!  July is just around the corner and we will all be cheering for you!

4J:  I am sure they have some type of Christmas, since money is their God. LOL!

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The national news is now finally learning of all this, I continue to get more and more current employees, former employees contacting me about all the internal ongoings of firms like Mr. Wait is talking about. The truth is, and will, come out.
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I agree with you PB but, please remember that times are hard right now.  Many people are on the brink of losing everything.  Sometimes being in this position makes them do things they normally wouldn't have done.  And it seems everyone has a "price".   They seem to forget that saving their own behind comes with a higher price in the long run! 

Remember, karma will get you in the end!

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The Equitable One

As others have suggested look closely at any indemnity or hold harmless language.

I was offered something similar. The hold harmless language included not only past bad deeds, but also any future bad deeds. Oh Joy.

Also interesting was that over the course of a 2 hour conversation with the offering entity it came to light that the "amount owed" wasn't a real number. They would unilaterally adjust up or down as they determined it was needed.

So the contract based on that number wasn't really a contract.

I took a pass on it myself. Just seemed another way for them to make me powerless and get away with more stuff.

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I would like you all to take note that my own litigation began well before the correspondence of September 2005!  This has been a long battle, and finally maybe in July we may see a jury!  But knowing how litigation goes I'm guessing maybe another continuance before a trial.
I have learned much from from where I began in 2001 with Litton Loan.  The use of lawyers as both Shields and Swords by them is just another way hide the fraud. 
Companies like MGIC and RADIAN are keeping CBASS alive, only to run the statue of limitations for the acts of fraud they have done, and hide the designed "Predatory Manufactured Foreclosures" that Litton Loan has engaged in as a subsidiarity of CBASS. 
Its interesting now that the "Net Working Agreement" is being exposed, we as victims are months if not years behind how corporations act to protect themselves.  Like Fidelity dumping LDS, after the networking agreements were disclosed. 
Did Fidelity dump LDS in order to protect its core business?  I'm thinking so, and so are others, Fidelity has a lot to be concerned with. For several months now I have been aware of a facility in Missouri that is run by Fidelity, that "Creates" "Original" documents!  Yes that's right, the facility in a small town was designed to recreate "Original" documents for litigation purposes, and has been in operation for a number of years now.  One has to think, just how many of these "Original Documents" were used in litigation cases throughout the country.  Disclosing this, could lead to several case's of Fraud upon the court, I have been discussing this very issue with a number of plaintiff firms, the implications are very broad and run deep, from Lawyer misconduct, to Fraud upon the courts, this may enable large class actions to be filed, and in some cases could lead to total recovery for those that lost homes to the "Manufactured Foreclosures"  When were ready I will share with you the name of this facilty, location and names of those in charge, and photo's of the facility in Missouri!

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Gary - That is beyond brazen to manufacture "original documents".  If so, GO GET THEM!  We're all behind you.

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Thanks Equitable One.

Gary: oh do be ever so careful!  I am cheering for you! 

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Wow you just dumped some info on me I didn't know. I'm not sure what small town. But I'm in Mo about 30mins from the City of St. Louis. I'm adept at research if there's anything you need u know u can figure out how to reach me quite easily thru here.

But this info with what I've been fighting does't surprise me at all. What I've found is not only is the atty I had on the take my due diligence shows there's others. This all goes to the top? Just what is the TOP?

MONEY AND BANKERS ONE CAN'T IMAGINE...It's more than any-1 can imagine I know this much. With what I've experienced professionally and know whose less than 10 mins from my home. Citi of course one of their major headquarters. I'm boggled by what you say but know your right.

That group is behind the initial wrongful foreclosure attempt on my home. You know one that should of cost them $500,000 or 5 yrs in jail or both. Now it should be so much more! The state atty is even in on it if you ask me! Dam BULLIES!

I have RIGHTS and like most on here I DEMAND to be HEARD. I have a right to know who I'm paying LAWFULLY DESERVES TO BE PAID. Otherwise get OUT OF MY COURT. Is all I can Say.

There's no way federal law is different in MO than it is in PA! State law possibly but FEDERAL NO. So the FIGHT IS ON! I'M DONE BEING NICE GUY PLEASE WON'T SOMEONE PUT THE CROOKS AWAY?!!!
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4 Justice Now

I believe Sara is right on the mark here. Please do be very careful. As I'm sure you know (probably more than the rest of us put together) these scumbag criminals would pimp out their own mother for a buck or two. So I seriously doubt anything is beneath them. We are all cheering for you!


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I've been thinking about you lately... Even though I have never met you in person, your online personality is one that I admire!  I consider you a friend who I would open my home to in a time of need.  Oh hell, I wouldn't do that for most of my family

You are rocking a boat the size of a cruise ship!  I am afraid there are some who would rather take you out of the picture than become cellmates with Bernie Madoff.  People don't use any judgement when their livelyhood is threatened!  See the latest news stories if you doubt me.

Please send out copiies of everything you have to people you trust.  Let people know that if anything should happen to you...your story gets heard. 

I am sorry to have to make posts like this.  I know, I sound full of gloom and doom and normally I am very upbeat.  I just feel like there is going to be some real bloodshed before this is all over.  And I don't put anything past people these days!!!


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Im bringing this thread back also for new and updated information.

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