Considering Litton Loan

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

Are Jobs Really Up?

Since the beginning of this year we have watched the job ticker go up and down, up and down. We have watched the unemployment filings vacillate to the point where we aren’t really sure what to believe. Unemployment went down when so many were hired to do work for the census, but as soon as those people were out of work then the numbers changed. There are many different variables that go into accounting for the proper numbers on unemployment.


There are those that were just recently hired, or those that were recently fired. Then, we have seasonal workers, and once they are out of work the numbers will change again. Then we have those who were also told that they could not extend their unemployment benefits. Huh? That’s right, in several states, especially in Ohio there were many that were told they could not get their unemployment extended after a bill was signed that would allow them to do so.

Here is the problem; those that were told they could not re-apply or didn’t qualify for whatever reason, are now in limbo. They are no longer getting unemployment, but they are still out of a job. So, how are they being counted?

-Mayer Dallal

The Holiday Gift of Suspending Evictions

Freddie Mac announced again that they would not evict people from their homes during the holiday season, which is something that they have been putting into practice for three years in a row. Freddie Mac isn’t the only one that is halting its evictions though, because Fannie Mae is jumping right in as well.

I think that this was one of the best things they could do, because times are hard enough and the holidays have made many people feel worse. Depending upon what holiday you will celebrating, you may be having a hard time with the holiday season. Perhaps it isn’t even a material thing and you lost a loved one, and that is plenty hard enough. Let’s look at the reality at what is happening right now too, and put a spin on this situation. Let’s say you just lost your spouse, and your mortgage payments are behind and you have already gotten your foreclosure notice. Not only are you in a bad place in life, but now you have been given more bad news which makes things harder. You now have to either find another place to live or sleep on the street. This is hard stuff, the stuff that right now I don’t have to worry about. No matter how bad I think I have it, I am still better off than many others in this country right now.

Many times, we also pass by someone without giving much thought to what might be going on in their world. I am here to tell you that I can’t stop thinking about the bum on the street with no place to go. Maybe he lost his job, and his wife left him and his home went into foreclosure and now he is on the street. This when I say “thanks be to God”. Freddie Mac can’t save the world, but it’s time than many more organizations follow their example in 2010 and the years to come.

-Mayer Dallal

Rent or Buy?

Those who are currently renting may want to stay a renter in this economy. Naturally, I promote homeownership, and there are so many benefits to owning a home, but in these tough economic times it may be hard to convince someone to buy over renting. Many are taking a look around and feeling comfortable right where they are.


On one side, when you own your home you will have more privacy, it’s yours, and dealing with neighbors is a little different. When you live in an apartment they are right next to you, but when living in a house they are a little further away. Renting a house is not so bad, but you are still putting up money every month for something that you will never own. There are some property owners that offer rent to own agreements with offering the money you pay into the rental as down payment towards the purchase of the home. However, just be careful that you read the fine print. These agreements can have huge loopholes and ultimately don’t put as much toward the down payment as you think.

Owning a home is still the American dream, but the challenge now is that the dream seems like it’s harder to achieve. The second half to this issue is that rents are getting higher, and making mortgage payments look cheaper. With home prices falling, there is no doubt that you can get more house for the money, but do make sure that in the bigger picture with maintenance and utilities that it will still work with your budget.

-Mayer Dallal

The Federal Reserve is at it Again

I wonder if the folks that work for the Federal Reserve are getting tired. They are in the throes of the economy every day, constantly looking at the bigger picture and trying to find ways to change things and improve on what is happening. However, the phrase “enough is enough” is a good one for the Federal Reserve regarding many different aspects of what they do.


They have been constantly scrutinizing banks, revamping policies, and having to look at interest rates and other financial figures so that they can issue forecasts on the economy along with news to the citizens are really curious as to what is happening.

Most recently in the news, the Federal Reserve made mention of its interest in scrutinizing the 19 largest bank holding companies….again. These banks are required to submit their plans for the coming year, and whether or not they can be stable under the mandate of the central bank. This isn’t going to be an easy task because they are going to be required to show how they can withstand the economic battle regarding real estate and how it affects their business, as well as overall affects from the economy as a whole.

The Fed’s are claiming that this is simply one way of showing that they are trying to elevate the level of responsibility and accountability of the banks. Let’s just hope that is the truth and that everything sticks.

-Mayer Dallal

Foreclosures Are Back In Motion

Banks began to examine their foreclosure documents a little closer when some mistakes were being made, then a foreclosure moratorium was issued. Now banks are back in motion filing their foreclosures and getting things done when it comes to evicting their borrowers. It didn’t take very long for the filings to begin again.


JP Morgan Chase amongst others have spent time training people in their departments to ensure that things are being done correctly. Too many foreclosures were not even being reviewed and were being passed through rather quickly. The banks have to be careful, ensuring that all legal issues have been squared away before they file these documents. Robo-signing may not be a thing of the past yet for all lenders, but cleaning up this mess we have our hands is definitely going to continue for awhile.

The question many consumers have is to whether or not they are going to be able to enforce their legal rights when a bank does them wrong. It seems that the banks are the ones that control almost everything, and doesn’t give the consumer a chance to ask the questions that really plague them until it’s too late. Bankers will always say that when it comes to foreclosure that the borrowers who get the notices are the ones who should be getting them; no questions asked.

Even if someone is behind on their payments, and they don’t qualify for a modification, the truth is that people need to be treated with dignity and respect. People should educate themselves and know their legal rights, just as the bank has their legal rights. No one is better than anyone else, and it still seems that no one is really focusing on making a team effort.

-Mayer Dallal

Refinancing Before the Holidays

If you have a lot of debt now and you want to get things in order, then go ahead and consolidate. The challenge in the past has been that families would refinance to pay off debt, then turn around and run up their credit cards again rather than paying cash. This is absurd, and yes it doesn’t benefit you if you know that your spending habits are hard to curtail. However, at a time like this in a rough economy it is best to downsize and begin setting aside more money in case you do have an emergency. Working off a cash basis will help you stop using these credit cards, and will get you to a place where you can break away from the spending and really think about what you are doing. If you don’t have the money on hand, don’t use a credit card to get it. While refinancing your home to consolidate and pay off debt is helpful, keep in mind that the less you have to consolidate the better off you are. You want to build equity in your home, and in a market where housing prices have fallen it doesn’t help to use it all up. If you have to do it then do it, but if you can pay off some other things on your own then do it that way.


I am here to help you every step of the way, and I will also be honest and tell you that refinancing may not be the answer for you. Not everyone will be in a position to refinance, but refinancing through FHA will give you the lowest rates on the market today, and FHA guidelines focus on commonsense underwriting, so they look at the bigger picture. FHA will look at your income, credit, investments, cash reserves, and how you pay other bills outside of your mortgage.

For more information you can go to www.fhaloansnow.net, or you can call me directly at 310-498-2700.

-Mayer Dallal