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Litton Loan Servicing Class Action
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| On October 26, 2005, customers of Litton
Loan Servicing, LP ("Litton") filed a class action
complaint charging the company with violations of federal
and state law. The named Plaintiffs filed the class action
lawsuit on behalf of a Nationwide Class and a California
Subclass of Litton customers. The Nationwide Class alleged
claims based on violations of the Real Estate Settlement
Procedures Act ("RESPA") relating to Litton's
improper actions in imposing late fees or treating payments
as late during the 60-day grace period following the effective
date of loan transfer if a borrower sends a payment to
his or her old servicer on time. The California Subclass
alleged claims based on violations of California law relating
to Litton's unfair business acts and practices with respect
to the servicing of loans. |
| The case is currently pending before Judge
Margaret M. Morrow of the United States District Court
for the Central District of California in Los Angeles,
California. Lieff, Cabraser, Heimann & Bernstein, LLP
and co-counsel represent Plaintiffs and the Nationwide
Class. |
| On July 30, 2007, Judge Morrow issued
a 56-page order granting Plaintiffs' Motion for Certification
of a Nationwide RESPA Class. Click
here to read a copy of the Court's Order. (Note: the Order is not a determination
of the merits of case.) The Nationwide Class is defined
as: |
All persons (i)
who presently own, or during the Class Period owned,
property (including mobile homes) in the United States,
(ii) who entered into a mortgage loan transaction which
was then transferred or sold to Litton or for which the
servicing rights were acquired by Litton Loan Servicing,
LP or its predecessors, directly or indirectly, at any
time between October 26, 2002, and the present, and (iii)
who made timely payments to the transferor servicer and
were charged late fees related to that payment within
the first sixty (60) days of the loan transfer to Litton. |
| This was a great achievement for Plaintiffs,
resulting from months of hard work and a long string of
briefs that were filed. By separate order, the Court denied
our motion for certification of a California subclass.
What this means is that the only class claims still pending
are those involving late fees Litton charged within the
first 60 days of loan transfer from the previous servicer
where borrowers made payments to the previous servicer
that Litton failed to credit. |
| However, on August 13, 2007, Litton filed
a petition with the United States Court of Appeals for
the Ninth Circuit, requesting permission to appeal Judge
Morrow's order certifying the Nationwide Class. Plaintiffs
filed a response with the Court of Appeals on August 27,
2007, opposing Litton's petition. If the Court of Appeals
grants Litton's petition, Litton will file an appeal. If
the Court of Appeals denies Litton's petition, the Nationwide
Class remains in effect. |
| As is typical in a case like this, the
Court ordered the parties to engage in settlement talks
to see if the parties could come to resolution of the case
out of court. The parties had their first mediation with
mediator and retired judge, Hon. Read Ambler, on July 31,
2007. Because the settlement talks are confidential, we
cannot disclose any details to you. However, the settlement
talks are ongoing and you will be notified if a settlement
is reached. |
| Our case is currently scheduled to go
to trial on November 27, 2007. Since the Court only certified
our Nationwide Class, this is the only aspect of the case
that can proceed as a class action. In preparation for
trial, we have reviewed thousands of pages of documents,
taken 12 depositions of Litton's key employees, including
Litton's Senior Vice President of Default Administration
and Senior Vice President of Loan Administration, and worked
with experts in the fields of loan servicing and accounting.
Over the next few months, we will continue to prepare our
case for trial in the event that mediation proves unsuccessful. |
| We are working hard to achieve the best
resolution possible for the class, and we appreciate your
patience and continued support. In the meantime, you
do not need to do anything regarding your national RESPA
60-day late fee claims. For all other claims, this case
will not protect your rights and you should seek another
attorney promptly. |
- What does all of this mean? The trial court certified
a Nationwide RESPA Class of borrowers as follows:
All persons (i) who presently own, or during the Class
Period owned, property (including mobile homes) in the
United States, (ii) who entered into a mortgage loan
transaction which was then transferred or sold to Litton
or for which the servicing rights were acquired by Litton
Loan Servicing, LP or its predecessors, directly or indirectly,
at any time between October 26, 2002, and the present,
and (iii) who made timely payments to the transferor
servicer and were charged late fees related to that payment
within the first sixty (60) days of the loan transfer
to Litton.
This means that only those borrowers who
meet all of the requirements of this definition are covered
by this class action, and only those claims that are
described in the class definition are addressed. However,
Litton has petitioned the Court of Appeals for permission
to appeal the trial court's order certifying the Nationwide
RESPA Class. We must wait for this issue to be resolved
before we know whether the courts will allow this case
to proceed as a class action on behalf of the Nationwide
RESPA Class.
- How do I know if I am a class member? If the
Court of Appeals allows this case to proceed, Litton
has the burden of identifying those borrowers who fall
within the class definition (as described above). If
this case proceeds as a class action on behalf of the
Nationwide RESPA Class and if you are a member of that
class, you will be notified in writing of what actions
you will need to take to protect your rights. Until Litton
identifies the class members pursuant to the Court's
order, we cannot confirm whether or not you are a member
of the Nationwide RESPA Class.
- What if I don't meet the requirements for the
Nationwide RESPA Class, as defined above? If you do NOT
fall within the class definition described above, you
are NOT a class member and your rights are NOT protected
by this class action. We suggest that you contact another
attorney promptly to protect your rights.
- Can you give me a referral to an attorney? If
you need a referral to another attorney for your individual
claim(s), we suggest you contact your state bar association
or the National Consumer Law Center at http://www.consumerlaw.org/.
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| We appreciate receiving information on your experiences with Litton. Click here to contact our firm. However, Lieff Cabraser cannot serve as your counsel in any matter unless you and our firm expressly agree in writing that we serve as your attorney. Please read the Statute of Limitations Notice below. |
| As part of our long-standing objective
of advancing consumer rights, we are spearheading litigation
intended to halt alleged illegal and deceptive business
practices -- often targeted at persons of low income or
having poor credit histories -- by several of the nation's
top credit card and mortgage loan servicing companies. |
| You should be aware that the Statute of Limitations (the deadline imposed by law within which you may bring a lawsuit) may severely limit the time remaining for you to file any potential claims you may have. |
| Lieff Cabraser Heimann & Bernstein,
LLP, is not affiliated in any way with Litton Loan Servicing
LP. Please read our disclaimer. |
| Lieff
Cabraser Heimann & Bernstein, LLP is a fifty-plus
attorney law firm that has represented plaintiffs nationwide
since 1972. We have offices in San Francisco, New York
and Nashville. We represent plaintiffs in class and
group actions and in individual lawsuits in cases involving
substantial losses. For the last five years, the National
Law Journal has selected Lieff
Cabraser as one of the top plaintiffs' law firms in
the nation. |
| This website is sponsored by Lieff Cabraser
Heimann & Bernstein,
LLP, a national plaintiffs' law firm. |
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LIEFF CABRASER HEIMANN & BERNSTEIN, LLP |
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| Notice: Lieff
Cabraser attorneys provide legal advice and practice law for clients in
federal district courts throughout the United States and in state courts
where we are licensed to practice. In states in which our lawyers are not
licensed to practice, we have affiliations with local attorneys who serve
as co-counsel with our firm. Please read our disclaimer. |
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Copyright © 2008 Lieff Cabraser Heimann & Bernstein,
LLP |
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We seek to halt unfair business practices that harm consumers nationwide.
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