While most of the headlines about abusive or half-baked foreclosure practices have focused on the huge retail banks — Wells Fargo, Bank of America, Citi, Chase, et al. — the big investment banks haven’t exactly been let off the hook. [More]
In 2009, tens of thousands of homeowners with mortgages serviced by Goldman Sachs subsidiary Litton Loan Servicing entered into trial loan modifications. But fewer than 12% of those same people ever received permanent adjustments to their mortgages, not because they didn’t qualify, but because Litton’s system for handling paperwork was a horrendous mess.