Litton Loan Servicing confirms suspensions of some foreclosures
Litton Loan Servicing confirmed to HousingWire that it has halted its foreclosure process to review procedures…in the briefest of emails: "Litton Loan Servicing has suspended foreclosure proceedings in certain cases while it completes a review of its procedures," the note says. Last last week, Bloomberg initially reported that Litton Loan Servicing, which is the mortgage-servicing unit of Goldman Sachs (GS), was starting to re-examine certain foreclosure proceedings. When Goldman acquired Litton in December 2007, a spokesman told Bloomberg it was "because it's a recognized leader in the loan-servicing sector," and "given the stress in the residential mortgage market, a premium is being placed on quality workout-servicing capabilities, for which Litton is very well-known.'' The Texas-based servicer follows most other, large mortgage lenders in initiating internal reviews, as attorneys general in all states but Alabama prepare to announce plans to conduct their own investigation into the nation's foreclosure debacle. JPMorgan executives said earlier Wednesday there's "almost no chance" the firm made mistakes in processes foreclosures. Mortgage lenders and loan servicers have come under increased scrutiny the past few weeks, as robo-signing allegations and fraud insinuations permeate the mortgage-finance space. Some market participants believe the housing market could slip into another tailspin if more banks suspend foreclosure activity. On Tuesday evening, the Obama administration said it opposes a moratorium on all foreclosure activity. Write to Jason Philyaw.