Litton Loan Servicing joins fray, suspends foreclosures
Joining the fray of home lenders that have suspended foreclosures, Litton Loan Servicing plans to halt its foreclosure process to review procedures. Bloomberg reported late last week that Litton Loan, which is the mortgage-servicing unit of Goldman Sachs (GS), will re-examine certain foreclosure proceedings. Calls and emails to Litton Loan Servicing weren't immediately returned. The Texas-based servicer joins PNC Financial (PNC) as the latest large mortgage lenders to halt foreclosures. Late last week, PNC notified title insurance companies of a 30-day suspension, as it reviews its procedures for faulty documents, according to a article in The New York Times. The firms join Ally Financial (GJM), JPMorgan Chase (JPM) and Bank of America (BAC) as companies who've admitted to signing foreclosure affidavits without reviewing the documents or without a notary present. Bank of America extended the foreclosure suspension to all 50 states Friday while the others restricted suspensions to the 23 judicial foreclosure states. Some market participants believe the housing market could slip into another tailspin if more banks suspend foreclosure activity. Write to Jason Philyaw.