Traditionally in the past, Litton Loan Servicing has not been viewed as a superior servicer of mortgages. Goldman Sachs owns Litton Loan Servicing, and analysts say that selling this loan servicing company could end a lot of problems for the bank. Litton Loan isn’t at the core of the service they provide, meaning Litton has nothing to do with investment banking, which is the direction that they wish to go. So, in their opinion it would be unwise to hold onto a company that has little to do with their ultimate goal.
Although there has been much talk around Goldman Sachs and everything that is going on in the industry of finance, I would have to say that letting go of Litton should be the least of anyone’s worries. In the past potential borrowers that had loans serviced by Litton were always having problems. They would report payments late when they were not, and forbearances would show up when no forbearance had ever been initiated on the loan payments.
The problems this can cause are insurmountable for many, as they now have to go back and try to correct everything that shows up incorrectly which can be really trying to the mind, the nerves and the emotions. Trying to overcome a loan servicer is very difficult, and a lot of information can get lost in translation going from the lender to the servicer, and never touching the ears of the borrower. Servicers definitely need work.
-Mayer Dallal
No comments:
Post a Comment