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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arkygirl
Can this servicer clusterbomb get any worse?

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) has moved closer to offloading Litton Loan Servicing, with Ocwen Financial Corp (OCN.N) leading in an auction to acquire the troubled mortgage business, sources familiar with the situation said this week.

A deal, however, has not been reached yet, so talks could still fall apart.

While Litton is not a large component of Goldman's operations, divesting the business would close an unpleasant chapter for the Wall Street bank.

Goldman bought Litton in 2007 for about $430 million, hoping to glean more information about the housing market to aid its mortgage-bond trading business. Shortly after the deal closed, the subprime housing market fell into shambles.

High levels of delinquencies and foreclosures have cut into profits of many servicing businesses. In recent months, sloppy foreclosure practices have also attracted regulatory attention and bad publicity.

Goldman began considering a sale of Litton late last year, and in the first quarter it took a $220 million writedown related to the business.

In a regulatory filing, the bank said it expected to sell Litton within a year and was cooperating with requests for information from regulators and state attorneys general about its foreclosure practices as part of a nation-wide probe.

http://news.yahoo.com/s/nm/20110520/bs_nm/us_litton_ocwen;_ylt=Al5IpVZ7BOvzgDxVhWoqvRy573QA;_ylu=X3oDMTJtNHJkNTViBGFzc2V0A25tLzIwMTEwNTIwL3VzX2xpdHRvbl9vY3dlbgRwb3MDMTgEc2VjA3luX3BhZ2luYXRlX3N1bW1hcnlfbGlzdARzbGsDb2N3ZW5pbmxlYWR0

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I doubt it can get any worst. Once the pond scum reaches the top physics prevents it from going any further.   But there may be a bit of good news - with any luck the "cluster-bomb" will become a larger and more visible target.
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Well TONY ETTINGER is trying to put the "BAND" back togeather,  he recently aquired the managment rights to CBASS's securities out of the Chapter 11 for a few penny's on the dollar and now Im hearing he is working to get LITTON LOAN. 
 
Tony is managing Partner of FORTRESS now, Tony was recently reported to have been in Houston for meetings, off site of Litton Loan,  
 
Tony is one of the God Fathers of the housing crisis dating back to the late 1990's, 
 
 
 
 
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THIS speaks volumes!

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Goldman bought Litton in 2007 for about $430 million, hoping to glean more information about the housing market to aid its mortgage-bond trading business.


How many bazillions did GS and others make shorting subprime mortgage bonds with credit default swaps? They KNEW exactly where and how servicers were creating fraudulent defaults.
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FnDoomed
Goldman knew it.  They are no stranger to bail outs.  Goldman has a very long history of engineering bailout situations and then benefiting from them.


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