Mortgage Servicer Giant Litton Loans is calling it a day

Mortgage Servicer Giant Litton Loans is calling it a day

Goldman Sachs mortgage servicing division Litton Loans may be calling it quits as rumors rubble around on Wall Street. According to a New York Times reporter the mortgage servicer never really proved to be a cash cow for Goldman and with the recent troubles with foreclosure procedures and defective affidavits only makes you wonder if this is the real reason.

Like many lenders in late 2010 after the "robo signing" became news, Litton had postponed any foreclosures until an investigation could be conducted. Since then, the company has resumed some foreclosure activity; however, pending law suits could be taking the wind out of the sails sort of speaks and probably is the real motivation of the ending of this division for Goldman.

Keep in mind the proposal of mortgage servicers now being regulated could also be a deciding factor, that in the end it may not be worth all the headaches.

Some analysts have mentioned it may be hard for Goldman to find a buyer considering they are one of the 14 servicers that may still be facing large fines and regulatory action due to the "robo signing" practices. Federal and state officials are still discussing on a settlement and what the fines may be.

Goldman seems to be refocusing on their global investment banking and securities trading and before the mortgage industry's new rule book comes out for mortgage servicers, it sounds like a sale could be possible. According to a spokesman for Goldman they are exploring their options for a possible sale of Litton Loans.

Between the mortgage servicers facing new rules and regulations, and the government program HAMP under fire, many homeowners are now wondering who will help them out of the foreclosure mess which in turn will only get worse before it gets any better.

If you have not applied for a loan modification with your lender it is important that you do so, time is your enemy and you do not have a second to spare! Remember there are many programs to assist you in keeping your home, and if you are unable to afford your home, there are programs to help you with relocation assistance. Keep in mind no collection of upfront fees is allowed any longer, for more information on this please read our blog or visit the FTC website.

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