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.
We’ve already written about Bank of America customers trying in vain to prove that they are not dead. But this story is a bit different. A man says he tried to get a modification on his BofA mortgage, but the bank won’t do anything until he can prove he’s dead and that he’s paying child support to children he doesn’t have.
The last few years have seen numerous settlements between the nation’s biggest mortgage lenders and various federal and state authorities. And while we hear numbers like “a total of $25 billion,” exactly which banks are responsible for the biggest chunks of these settlements?