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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Litton Continues to Have Customer Complaints after Class Action Settlement

Litton Loan Servicing is still having customer problems even after settling a class action lawsuit in April alleging it charged bogus late fees after posting payments that were made on time too late.

ConsumerAffairs.com says that complaints about the Goldman Sachs subsidiary “continue to roll in,” not only
about late account postings, but also about getting a run-around when seeking loan adjustments.

Litton blamed its past history of late postings on glitches in its automated servicing platform. The settlement covered all homeowners whose mortgages were transferred or sold to Litton between October 2002 and February 2009 and who were charged erroneous late fees within 60 days of the transfer.

According to testimony from a former Litton employee

during the litigation, Litton was overwhelmed by the amount of business it was taking on and became careless. For example, the witness said, when a payment couldn’t be matched to an account, it was placed in a catch-all “payment clearing account,” where it sat for months or even years.

In the meantime, the account of the consumer who sent in the payment went into default, collecting late fees and sometimes ending up in foreclosure. When a missing payment was located, according to this testimony, it was to be applied as of the day it was discovered, rather than the date it was received, leading to further erroneous late fees.

Other recent complaints are from homeowners who were promised loan modifications, ConsumerAffairs.com reports, only to be told after months of waiting that they did not qualify. Customers say Litton dragged the process out by claiming they hadn’t received necessary paperwork or that the evaluation was taking longer than expected. The delay brought some customers close to foreclosure.

While complaints of erroneous late fees that could have been covered in the original litigation cannot be the subject of new actions against Litton, subsequent instances could lead to individual lawsuits or another class action.

If Litton’s practices with regard to loan modification are at variance with their disclosures, the company could run afoul of the Truth in Lending Act (TILA) and other federal legislation.


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Stephen

The entire industry believes it "Owns Washington".  This is a difficult mindset to change

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Careless ?
Careless Think NOT !
 
Litton prisoners might want to be sending this link:
along with your story to Special Inspector General TARP:
Prisoners of other servicers might consider doing likewise and
maybe include this link:
To date servicers have been guaranteed $ 27,065,760,000 
[27 BILLION] as of 10/2/09.  That's up 5 BILLION from 9/29/09. 
Anyone interesting in tracking this travesty that rewards Mortgage Servicing Fraudsters can do so here:
Click on latest TARP Transactions Report and scroll down to bottom 2 pages for servicer mortgage modification "incentive" payments.
TARP program dispensing mortgage modification incentive funds to servicers
requires them to comply with the law.  SIG TARP recently dispatched a team to Texas for an audit on mortgage servicers.
 
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