Tag Archives: Litton Loan Servicing

The time mortgage loan servicers take to resolve delinquent loans through modification or foreclosure varies widely. According to an analysis by Moody's Investors Service, Bank of America has demonstrated the weakest performance measured both by its speed in resolving the status of delinquent loans and by its proportion of delinquent loans that have yet to be resolved. The ratings agency found that GMAC Mortgage, on the other hand, has generally performed better than its peers.

The New York state court system has instituted a new filing requirement that officials say will prevent wrongful foreclosures and protect the integrity of the process. Lenders' counsel are now required to file an affirmation certifying that they have reviewed and verified the accuracy of foreclosure documents. The new mandate is in response to recent disclosures by major mortgage lenders of potential deficiencies in notarization and so-called ""robosigning"" of supporting paperwork.

Evidence of major servicers mishandling foreclosure paperwork has cast a cloud of doubt over the entire industry and servicing procedures across the board. Consumer advocacy groups and a number of state attorneys general have demanded a nationwide moratorium on foreclosures. But two senior White House officials have indicated that the Obama administration will not support an all-out foreclosure freeze. So far, five companies have announced voluntary foreclosure suspensions because of potential deficiencies in the legal paperwork.

Litton Loan Servicing LP, the Houston-based mortgage servicing unit of Goldman Sachs has joined the ranks of mortgage firms issuing a voluntarily foreclosure moratorium. The company has declined to release details of which states the suspension encompasses or how many loans it might affect.