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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Well the Litton's are off and running, forming a new company dsl capital LLC, out of Cleveland Texas,  Larry Sr. and his wife, are the corporate officers,  Rumors are they intend to be back in the "Debt Collection" and mortgage servicing business after Goldman sells Litton Loan to Ocwen.  
 
Keep an eye on this one, I'm betting Larry Jr. will over there maybe next month. 
 

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floridagal

UPDATE 2-NY regulator, Goldman reach 'robosigning' pact

       
               
               

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Thu Sep 1, 2011 3:46pm BST

* Goldman, Ocwen to strengthen foreclosure oversight

* Goldman to take $53 mln mortgage writedown

* State regulator gives green light to Litton deal (Adds background on Litton, regulatory probes)

NEW YORK, Sept 1 (Reuters) - Goldman Sachs Group Inc (GS.N) will compensate some home loan borrowers for wrongful foreclosures under an agreement reached with a New York state banking regulator.

The agreement, which New York financial services superintendent Benjamin Lawsky reached with Goldman and Ocwen Financial Corp (OCN.N), contains several measures to strengthen the oversight of foreclosure proceedings.

It also will allow Goldman's planned sale of its Litton Loan Servicing LP unit to continue.

A chief focus of the superintendent's agreement, which was announced on Thursday, was putting an end to a practice known as "robosigning," in which bank employees signed foreclosure documents without reviewing case files as required by law.

Goldman, Litton and Ocwen agreed to stop the practice, make new staffing and training requirements for employees handling foreclosures and withdraw pending foreclosure actions that are based on faulty paperwork.

They also agreed to compensate borrowers for wrongful foreclosures and strengthen protections for homeowners in relation to late payment fees and insurance costs.

Goldman also agreed to forgive 25 percent of the principal balance on mortgages that are 60 days overdue, a move that will cost the bank $53 million.

Ocwen is in the process of buying Litton, a Houston-based mortgage loan servicing business, for $264 million. The agreement will allow that deal to proceed, the superintendent's office said. As a result of the robosigning pact, Lawsky agreed to issue a "no objection" letter to the deal.

The Ocwen-Litton combination will create the 12th largest mortgage servicer in the country, according to Lawsky's office. Goldman said in a recent regulatory filing that it expects the deal to close by the end of the year.

Goldman bought Litton in 2007 for $430 million, hoping to glean more information about the subprime mortgage market to help its trading business. In recent years, it has become a money-losing thorn in Goldman's side.

The bank began considering a sale of Litton late last year, as the mortgage market continued to suffer losses and state and federal regulators began investigating industry-wide foreclosure problems. Goldman wrote down the value of the business by $220 million in the first quarter.

In a quarterly filing on Aug. 9, Goldman said Litton was facing probes by state attorneys general and banking regulators. A group of the nation's largest banks are said to be working toward a settlement that could resolve some of those investigations and cost the industry billions of dollars.

Goldman Sachs spokesman Michael DuVally declined to comment on the agreement. An Ocwen representative did not respond to a request for comment. (Additional reporting by Sakthi Prasad in Bangalore. Editing by Vinu Pilakkott and Robert MacMillan)

                                                                       
               
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BobbieF
Goldman Sachs has promised to never break the law again. 
This is the same promise the five big banks made last year
and went right back to lawbreaking.
Why in the world would Litton land in Cleveland Texas?
A dinky, dusky little town outside of Houston.
A tax write off from the city or the county, maybe?

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BobbieF
Here's the Litton company address.
Cortera Company Profile For:
                                       

DSL CAPITAL

                                       
562 COUNTY ROAD 3997
                                                CLEVELAND,                                                                                                  TX                                                                                                  77328-3504                                                  |  view map
                                                (713) 594-2834


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George Burns

Litton Loan is NOT DSL.

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