Bill Robertson from our firm recently completed a significant settlement against Litton Loan Servicing. Litton is a loan servicer, which means they contract with sub-prime loan originators to collect fees and payments on (primarily) mortgage loans. The Plaintiffs alleged there are a number of problems with the way Litton was collecting on certain loans. It was alleged that Litton was not properly crediting certain payments when made, that they were force-placing insurance on certain loans, and charging fees and costs that were excessive and not proper according to state and federal law.
Another case, filed in the Circuit Court of Hale County, Ala., alleges that Select Portfolio Servicing repeatedly held timely mortgage payments until the payments were late and later charged late fees to the Plaintiffs. As a result, the Plaintiffs were improperly charged unearned and unidentified fees and penalties relating to the alleged late payments. Select Portfolio Servicing failed to disclose that the Plaintiffs would be charged any and/or all of the fees, finance charges, penalties and/or forced placed insurance premiums prior to the close of the mortgage loan. Due to the actions of the Defendants, the Plaintiffs were forced to enter into a Forbearance Agreement with the Defendants and threatened with foreclosure if the terms of the allegedly unfair agreement were not met. The Plaintiffs in this case are not alone in their fight against mortgage holders. This case is developing on a nationwide level with thousands of potential victims. Bill Robertson (Bill.Robertson@BeasleyAllen.com) is the primary lawyer handling these cases for the Section.
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