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Gary Wait
Reply with quote  #1 
Rumor spreading that Litton Loan is closing on August 31, 2011, leaving 1500 out of work in Houston.  Can anyone confirm this?
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Litton Sucks
Reply with quote  #2 
http://www.sec.gov/Archives/edgar/data/873860/000101905611000674/0001019056-11-000674-index.htm

Start at slide11.jpg

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Bill
Reply with quote  #3 

Quote:
Originally Posted by Gary Wait
Rumor spreading that Litton Loan is closing on August 31, 2011, leaving 1500 out of work in Houston.  Can anyone confirm this?


Sounds pretty silly to me.  While it appears Litton will be sold by August 31, 2011 you just slap a new name on Litton's building and it's business as usual.  You really wouldn't need to even rename the business.  There has to be some kind of transition/turnover.  It would be total chaos just to kick out 1500 people without a new system in place. 

Gary, I'm not really seeing much on the net about a Litton Layoff.  Any links you could post?
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Gary Wait
Reply with quote  #4 
The information came from insiders at Litton, Larry Jr. will be out.   
 
I don't know much more than that right now, other than Litton Loans personnel are coming out of the woodwork and talking, 
 

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Bill
Reply with quote  #5 
Gary,

Let us know if you hear something else.  I do think we are going to find that initially, there will be little that changes once Litton is sold. 
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Litton Sucks
Reply with quote  #6 
When Ocwen purchased HomeQ they fired virtually every single employee.  Ocwen prides themselves on their illiterate Indian call centers.  I can't see it being any different when they close the deal on Litton. 
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f247
Reply with quote  #7 
Makes sense. It will cost Ocwen ~$60M like it did with HomEq to shut everything down.
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Gary Wait
Reply with quote  #8 
The latest:
 
1500 to lose there jobs on August 31,   300 will remain for 90 days doing "Loss Mitigation" work.  Then LITTON LOAN WILL BE DONE!
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Angelo
Reply with quote  #9 

That would be great for anybody that has litton as the servicer during a foreclosure.  How can anybody for Ocwen sign an affidavit as to amounts due, and also authenticate business records.  Everything from here on in would be HERSAY!

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Way To Go
Reply with quote  #10 
Just how diligent do you think the remaining 300 folks will be during their final 30-days?  Might they leave behind one huge mess?  Maybe Litton should hire a motivational speaker to tell them how great they are and what a wonderful job they are doing for their beloved company.
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Debbie
Reply with quote  #11 

If the deal between Goldman and Ocwen is signed, its possible that the rumour might be true.  Afterall Litton has had a lot of problems and is being investigated in Texas as well as elsewhere.  Ocwen itself has had many problems so you knows.

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Rod
Reply with quote  #12 
So that means everybody that has a loan serviced by Litton should be getting 'hello' and 'goodbye' letters in about 15 days...........can't wait!!!!
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cmc
Reply with quote  #13 

West Palm Beach firm rolls out a new loan modification for underwater borrowers

Ocwen Financial has emerged as a leader in President Obama's loan modification program, processing a large number of modifications compared to other servicers. The call center at Ocwen in West Palm Beach.
Gary Coronado/Palm Beach Post
Ocwen Financial has emerged as a leader in President Obama's loan modification program, processing a large number of modifications compared to other servicers. The call center at Ocwen in West Palm Beach.
Ron Faris, President of Ocwen Enterprises, in West Palm Beach.
Gary Coronado/Palm Beach Post
Ron Faris, President of Ocwen Enterprises, in West Palm Beach.
Real Time real estate blog at PalmBeachPost.com

Updated: 9:50 a.m. Monday, Aug. 8, 2011

— Lenders have long resisted cutting loan amounts for struggling homeowners, fearing it would entice more borrowers to default.

But one locally based servicer, Ocwen Financial Corp., believes it has found a solution.

The company is rolling out a new loan modification plan for underwater borrowers that lowers the amount owed on the loan - thus reducing the monthly payment - but asks for a share in the appreciated value when the house is either sold or refinanced.

The kickback to the lender may deter people who can afford to make their payments from defaulting, while giving an incentive to either the lender or investor to modify the loan.

"We think this answers some of the critics who say that by reducing principal, you are rewarding imprudent borrowing behavior," said Ocwen Executive Vice President Paul Koches. "What we see is unprecedented delinquencies, and we're doing our best to resolve them."

Offered in 33 states, including Florida, the plan is available only on loans where it will earn more for either the lender or investor than if the home went into foreclosure.

Called a shared appreciation modification, it's fairly simple on its face.

A home's principal amount is reduced to 95 percent of the current market value. That portion is forgiven in equal amounts over a three-year period as long as the owner stays current on the loan.

When the house is later either sold or refinanced, the homeowner must give the lender 25 percent of the appreciated value of the home.

For example, say the principal balance on a loan is $125,000, but the current value of the home is only $100,000. Ocwen's plan would reduce the balance to $95,000, putting $30,000 in a non-interest-bearing account that will be forgiven over a three-year period.

If the house is later sold for $120,000 - marking an appreciation of $20,000 - the homeowner would get to keep $15,000, while $5,000 would go to the lender. If the home doesn't appreciate, then the sale occurs as it normally would.

Ocwen, which has about 245 employees in its West Palm Beach office, estimates about 53,000 home­owners nationwide will be eligible for the principal reduction program.

The company specializes in servicing the nation's riskiest home loans and has a portfolio of about 460,000 loans. Ocwen's recent acquisition of Litton Loan Servicing will add 250,000 loans to its portfolio.

A test of the new loan modification program that was launched last year found that of borrowers offered the plan, 79 percent accepted it. The default rate has been about 2.6 percent.

"You have folks breaking their necks to make payments on a home where there is no hope in their lifetime of it regaining equity," Koches said. "A homeowner in a negative equity situation is one-and-a-half to two times more likely to go into delinquency."

In Palm Beach County, nearly 43 percent of homes with mortgages were underwater during the first quarter of 2011, according to real estate analysis firm CoreLogic. Nationwide, 23 percent of homes with mortgages were underwater in the same period.

Most home loan modifications result in an interest rate reduction, which can do little in the long run for homeowners who owe more on their loan than their home is worth, said Kathleen Day, spokeswoman for the Center for Responsible Lending.

"We've felt for a long time that unless you do principal write-downs, you really aren't getting at the problem," Day said. "It's in everyone's best interest to keep a credit worthy person in their home."

Diane Thompson, an attorney with the National Consumer Law Center, is optimistic that Ocwen's plan will work for many borrowers. But she has concerns that it isn't enough for people whose home purchase was based on fraudulent appraisals that artificially hiked the value of a home.

"People who were ripped off should get more than shared appreciation or principal write-down," she said.

And whether the nation's largest lenders will follow Ocwen's new model is unknown.

"Ocwen has been out front for years in doing principal reduction modifications, but the other lenders have been slow to follow," Thompson said. "There is always some hope it will catch on

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Gary Wait
Reply with quote  #14 
Panic is the best way to describe whats going on at Litton Loan right now.  Like rats from a sinking ship, employees are looking to save themselves,  and, the stories they are telling are profound, and telling of the a culture of corruption. 
 
Benny Hibler is being painted as the man in charge of credit history's, although we knew this before, but now we know much more, on his oversight of making up payment histories and knowing them to be false!  In return, Benny received "Cash Cards" from Larry Litton, so did several other key individuals, these "Cash Cards" were "untraceable" and given to some key employees.
 
Meanwhile, Chris Wyatt continues his rant against Goldman, and while he's attempted in the past to protect Larry Litton Sr. and Jr. but to no avail! 
 
NO MORE CASH CARDS! for Litton employees,  Maybe the IRS should conduct an audit of those Cash Cards. 

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Angelo
Reply with quote  #15 

Have any pink slips been handed out yet? because the 2 week mark is almost here!

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unsure
Reply with quote  #16 
IDK about any pink slips but they are steadily filing assignments....

http://www.pascoclerk.com/i3/65-32-178-35IP2011123262.pdf


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Bill
Reply with quote  #17 
From Gary's previous posts I was under the impression that they still were going to keep a core of people to operate some of Litton's operations.  I don't think there will be a slow down in their documents until Litton is completely dissolved which could be some time down the road.  We'll see what happens at the end of the month but I'm not holding my breath.  Just because someone purchases Litton doesn't mean they have to dismantle it right away. 

Has anyone received a Hello/Goodbye letter from Litton?
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Inquiring
Reply with quote  #18 
Well not sure if this is a goodbye letter....
Said : Confirmation of insurance coverage for your property has been received or your loan has been paid in full or transferred......

IDK lol

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B
Reply with quote  #19 
Well, I received my 'hello' letter from Ocwen yesterday, 8/18/11, on Litton letterhead.  I'm still reading through the packet but wanted to post to see if anyone else has received the same. 
I am sick with that out of the fying pan into the fire feeling.  Anyone else? 
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hide
Reply with quote  #20 

we too received our hello letter from ocwen on litton letterhead...litton approved us for a loan mod. that was to start on 9/1/11...lowered our int. rate, reduced principle by $98,500 (part of which is late house payments). we felt like wow they really want to help us save our home. then we get the hello letter from ocwen saying to send payment to them starting 9/1/11. so we wonder are they going to honor the modification. today we get a letter dated 8/15/11 from litton saying our loan mod wont actually go through until the bankruptcy court by law allows a 21 day period for objections to happen.  21 days from the date of letter...do the math...the 21 days is up after 9/1/11...after ocwen has taken over. our lawyer tells us all we can do now is wait and hope that ocwen acknowledges the loan modification since technically it will not be in effect when ocwen takes over. sound familiar to anyone else?

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Jill
Reply with quote  #21 

yes bill I have recieved a good bye letter but they never helped me out so

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sheri
Reply with quote  #22 
I have received my goodbye notice from Litton--I was, at first glad to be rid of them!!
It took me 22 months to finally finalize a modification (not a HAMP), This modification has been in effect for several months. Now, I have been reading about OCWEN!!!!
OMG!!! Are they going to honor my agreement(which I have in writing, obviously)??? Or is my nightmare going to start all over again?????

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BobbieF
Reply with quote  #23 
In yesterdays' news it was posted Litton was moving out of Houston and
Harris county to Polk county and the small town of Cleveland Texas.
The only way Litton can modify a loan is they take over the part of the
payment the borrower is forgiven for, or they have bought back their
inactive loans from the investors who bought them.
Is there any way of tracing these loans?

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George Burns
Reply with quote  #24 
BobbieF

Where did you ever see a report that Litton was moving to Clevelannd, Texas ?
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Bill
Reply with quote  #25 

How many people DID NOT get a hello/goodbye letter?  As I thought, It's the 2nd of Sept and I am still getting phone calls from Litton.  Just because Ocwen purchased Litton does NOT mean Litton will close.  I personally think Litton will remain open for some time to come.  Somewhere along the way Litton will be dissolved, but it won't be any time soon. 

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Angelo
Reply with quote  #26 
I was sent a hello letter from ocwen, but it was sent to my attorney.  At least they know that any contact with me a big violation.

Does anybody know how far Houston is from Cleveland? 
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BobbieF
Reply with quote  #27 
I read it yesterday, I've read so much of mortgage fraud I'll have
to find the link.
The new company is DSL Capital LLC.
If this is the same entity, they have relocated themselves on a dead
end street in Cleveland. 
Cleveland is about 45 miles north north east of Houston.

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Bill
Reply with quote  #28 

Quote:
Originally Posted by George Burns
BobbieF

Where did you ever see a report that Litton was moving to Clevelannd, Texas ?


I think you are a little confused BobbieF.  We are discussing Litton Loan Servicing, not Larry Litton.  What is forming is a different company totally unaffiliated with Litton Loan.  Litton Loan is NOT moving.  They will stay right where they are at or be absorbed into ocwen. 


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DR
Reply with quote  #29 

I am a former customer of Litton.  My property was sold and my mortgage was closed in July, 2011.  Unfortunately, the IRS now is requesting my mortgage interest statement from 2009.  Ocwen does not have my loan information as the loan was closed.  Anyone have any ideas where it might be or how I might be able to find someone to help?

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Loves Litton, NOT!
Reply with quote  #30 
My new mortgage payment goes to Ocwen in FL.  They were also nice enough to give me a brand new loan number...how sweet of them.

I do wonder when the next round will begin.  I don't trust this place anymore than I trusted Litton!!!

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Inquiring
Reply with quote  #31 
Yea mine too lmao... They will get my notice of dispute in about 3 more days!! Funny how they are willing to buy a loan that has been in default for soooooo long!!
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