Litton Loan (owned by Goldman) recordings by homeowners on loan mod attempt

Written by Biloxi

 Major banks involved in  foreclosure fraud have been in the news lately. Now, Litton Loans, the subsidiary of Goldman Sachs is added to the list of mortgage banks under scrutiny for foreclosure fraud. These two example You Tube videos are prime examples to why Goldman Sachs will continue to have black eye of reputation and why Goldman Sachs is so eager to sell off Litton Loan Servicing.

The first video is from an actual call, recorded on October 20, 2008, between a homeowner and a lawyer, Heather Johnson, of the foreclosure mill, Steven J Baum, representing Litton Loan Servicing. Chris Wyatt, then a Litton Loan attorney also was involved in initiating this call (although he declined to be recorded). Ms. Johnson then signed off on a foreclosure, nearly ten months later, on behalf of the securitized pool allegedly holding the homeowner's mortgage. Steven J Baum firm is under investigation by both the Feds and the New York State Attorney General Eric Schneiderman. The Steven J. Baum firm has done extensive work for Litton Loan and its host of robo-signers, including Marti Noriega, Denise Bailey, Diane Dixon and others.



The second video was an actual call, recorded in 2007, between a homeowner and "TJ" a customer service representative for Litton Loan Servicing. When you listen to the conversation by Litton Loan representative, the representative is offering a take-it-or leave it strategy with the homeowners while ignoring help for the homeowner. Computer graphic lists alleged "toxic" mortgages bundled for the Citigroup Mortgage Lending Trust (CMLT):



By the way Chris Wyatt, who left Litton Loan, is now spoken out as a whistle-blower and citing the problems inherent in the servicing business. Goldman Sachs issued a legal threat on behalf of their subsidiary Litton Loan Servicing against Chris Wyatt for talking about the mortgage servicing industry, even though the Mr. Wyatt didn't even mention Litton. He was featured along with another whistleblower of another company on the Dylan Ratigan show. Click here.

And another shoe has dropped recently against Litton Loan last week. An anonymous Litton Loan employee blew the whistle on the company by giving a letter to the New York Fed on how the company are denying borrowers HAMP loan modifcations.

From the Financial Times:

The Federal Reserve Bank of New York is investigating allegations that the mortgage servicing arm of Goldman Sachs failed to conduct appropriate reviews before denying borrowers a chance to lower their payments through a government loan modification programme.

A person familiar with the Goldman unit concerned, Litton Loan of Houston, Texas, said loans were denied without the proper review under a “denial sweep” strategy devised to clear a backlog of applications.

The allegations were brought to the Fed’s attention by the Financial Times, which obtained a letter written by an anonymous Litton employee…

The person familiar with Litton said he had examined loans that met the criteria for a government modification, but were denied it, sometimes because Litton employees made mistakes in how they calculated the borrower’s income. Other loans were denied the modification on the grounds that documents were missing, even though Litton’s computer system reflected receipt of the necessary paperwork…

Lawyers and consumer watchdogs said they were seeing a growing number of complaints against servicers by borrowers who allege they were improperly denied a modification.

The Better Business Bureau in Houston has received 17 such complaints filed against Litton, which is more than for any other servicer…

The letter received by the Fed from the person familiar with Litton said that at the same time that the modifications under Hamp were being denied, Goldman was increasing non-government modifications for loans it retained on its books.