Complaint Review: Litton Loan Services LP And New Century Mortgage - Houston Texas

I am really not responding to the original post which is almost 2 years old. This is more of a "general" response to those complaining about New Century or other "sub-prime" lenders. New Century, First Franklin, Fremont, Decision One, HSBC, Option One, Ameriquest are all lenders who specialize in borrowers with less than perfect credit. That is their "niche" in the mortgage world. Over the last 15 years in this business I have brokered loans to New Century, Fremont, Decision One, and First Franklin. I ONLY use these lenders if the borrower CAN NOT get approved anywhere else. Invariably, there are a multitude of issues that make the loan I am trying to do "sub-prime." I didn't create these issues, the lender didn't create these issues, these issues BELONG to THE BORROWER. It is my job to accomplish the needs of my borrower. Frequently these needs require a higher interest rate or discount points be added to reduce the rate that is actually assigned.. We (the brokers) do not "get rich" on sub-prime lending. Actually, sub-prime loans are far more expensive for us to do than a borrower with perfect credit. They take 4-5 times longer to get approved, much more work on my part. It is almost a universal truth in the mortgage business...the borrower EARNS their interest rate through the proper management or mismanagement of their finances. If you want the best rates, loan terms, best lenders, then go earn them by properly managing your finances. I know this statement will piss off some readers, but think about it. I'll bet every one of you who complains about a sub-prime lender "screwing" you somehow, has some factor in your mortgage or credit history that "earned" you that so called screwing. Does this sound heartless? Maybe. But here is an interesting factoid from USATODAY: "Subprime mortgage activity grew an average 25% a year from 1994 to 2004, outpacing the rate of growth for prime mortgages. The industry accounted for about $330 billion, or 9%, of U.S. mortgages in 2003, up from $35 billion a decade earlier." So if you have a problem with sub-prime lenders, why not take matters into your own hands and leave the ranks of the "sub-prime borrower" Then, you would have nothing to complain about.

"There is written proof in existence of that fact"
Where?

"Answer me this: since the mortgage servicer is supposedly bound by the contract signed with the originating lender, why does the servicer seem to be operating on a whole different set of guidelines? WHERE is the incorrect information coming from?"

-What kind of different guidelines? Ever been a broker? Take a look at the loan documents originated by different companies. They look the same, don't they? It's called an "industry standard". In the subprime market, you'll always be due on the first. You will always have 15 days after the due date (the 17th, mind you, not the 16th) to make your payment without suffering a late charge. You will always be issued a "Notice of Intent to Forclose" after not paying your mortgage in a one month period. You never ever ever ever have a "grace period". Also, a "payment deferral" is not a right given to you by law, nor is it an "industry standard".
I ask again, what different set of guidelines? Customer A owes Mortgage Company B money. Customer A fails to pay Mortgage Company B money on the due date. Mortgage Company B feels it is necessary to begin collection efforts to get the payment in a timely fashion from Customer A. How does that differ from any subprime mortgage company? It doesn't.

"New Century is becoming more known every day as a huge port of entry into the grinder of subprime servicers"
Of course they are. They give mortgages to people who otherwise would be turned down by prime mortgage companies. What is the purpose of a broker? To get you the best deal that you can get (while trying to make a healthy commission by pulling the wool over your eyes, but that is another story). People with bad credit. People that cannot prove their income (eg. self employed people). People that just came out of forclosure. People that just came out of bankruptcy. People that have a high "debt-to-income ratio" (how much your mortgage payment is versus how much money you make a month). People that are continually late. See, what you have to understand, is that New Century (any subprime lender really) doesn't take "A paper" (someone who has great credit, has worked in the same job for 20 years and makes much much more than their mortgage payment is-more than 3 times what their payment is) and turn it into a subprime loan. People do that themselves.
Subprime lenders give out high(er) risk loans at high(er) interest rates. If you want to blame someone about having to be with a subprime lender, blame yourself, ultimately you did it to yourself with your bad credit (or having to be self employed).

"New Century is entirely aware of the inflated appraisals."
Of course they are, because every company has them. Let me see here...they get a loan with an inflated appraisal...which means they give good old Customer A more money than he should have recieved...which means that if he splits to Cancun and never makes his payment and they have to take his house....oh crap, guess what? They just took a loss.

"hand-washing is not a valid career choice"
Since when? There are people who make six figure incomes doing that. They are called "spin-doctors" and they work in every major industry in America.

"They must be forced to "watch dog" each other and try to keep each other honest"
That will never happen, people are dishonest by nature.

"WE are going to make it happen"
Think of the mortgage companies as "The Man". They have a lot of money. They have a lot of time. They have armies of lawyers. When you have something to match that (and don't give me "the truth" or "integrity" because as we all know, these don't go as far in court as money and lawyers go...remember OJ?)

Oh yes, one more thing
"New Century lends its name to any unscrupulous broker who will churn out a loan ap"
They are just like everyone else, greedy.

New Century is becoming more known every day as a huge port of entry into the grinder of subprime servicers!!

New Century lends its name to any unscrupulous broker who will churn out a loan ap; these loans are often placed with Litton, Ocwen, or other known predatory servicers in less than two months and almost always within six months.

These "jacked up appraisals" are how the money is made and is all part of the RICO plan among agents, brokers, appraisers, loan originators and sub-prime servicers. Those "in on the deals" know just how to work it where huge chunks of equity are stolen right off the top. (There is written proof in existence of that fact and, YES, New Century was in on it! Changed documents and figures by New Century and their corrupt lawyers!)

New Century is entirely aware of the inflated appraisals.

Answer me this: since the mortgage servicer is supposedly bound by the contract signed with the originating lender, why does the servicer seem to be operating on a whole different set of guidelines? WHERE is the incorrect information coming from?

Adam, YOU are playing Pontius Pilate for New Century, trying to wash their hands for them. There is no innocence at New Century, and your feigned attempt at being "totally unaware" has fallen flat on its ugly face.

Got news for you....the evidence becomes clearer by the day that New Century does the RICO salsa! If you work for them, shame on you!

Marcia, you need to ask Litton for your contract copy. Compare it to your copies and see if there are any alterations. If so, it was probably done by New Century before passing the loan on. If not, your beef is with Litton Loan.

Adam, get a real job; hand-washing is not a valid career choice. And there is not enough soap in the world to wash the stink off of New Century.

Diane, you are right. This "buck-passing" will not fly much longer. There has to be a sense of responsibility among ALL parties in an RE transaction and they MUST ALL be held responsible and accountable, all the way back to the brokers and appraisers. They must be forced to "watch dog" each other and try to keep each other honest, or all go down TOGETHER.

This "Gimme-free-for-all" in existence today in this industry has got to go. And it will; WE are going to make it happen!

Look out, Adam....the noose tightens.

Just reading these 2 posts. My comment is to both Adam who represents this lender and New Century Mortgage.

As a business that deals with the American Dream, homeownership your company definitely has a responsibilty to know who and what they deal with.

In this case, the independent broker made a mistake, do you not review the proposal and the numbers before the contract is signed, sealed and delivered? Guess not!

It appears that Adam & New Century assumed too much, we all know what that does and means.

And to make matters worse, your conscious transfer of the account to Litton Loan Servicing, knowing all to well that they are causing numerous problems for their customers.

Adam, it is obvious you are a loyal employee, do you expect a raise or promotion for defending your employer?

Or are you just a goody two shoes who might be out the door soon since many of these companies are downsizing, plus making a public comment.

In followup, New Century Mortgage and Adam, as a business & employee you are both involved and representatives of the community and it's people.

You better believe you have a professional responsibilty to know the ins and outs of these referral companies and persons you deal with. Some times call professional ethics.

And if you did not know, you most definitely do now! Remember to look before you leap!

I am a current employee of New Century Mortgage.
Please, readers, remember several items regarding this report...

1. This loan was done by a BROKER using New Century's Wholesale dept. a broker is NOT New Century Mortgage. They are independent middle people who use our rates and wholesale dept to lend the money.

Therefore...

It is not a fault of New Century that the appraisal came in much higher than the actual value of the home. The appraiser who did the appraisal does not work for New Century, nor does the broker who did the loan for you.

Litton loan servicing is the servicer for the loan, they are not New Century Mortgage either. When the loan passes from New Century to Litton, New Century no longer is responsible. In my experience, I have heard those same type of complaints about Litton from many of my customers.

I feel bad for your situation, but please know that the process you went through only indirectly involved New Century Mortgage, they were not resposible for the bad appraisal or the poor servicing from Litton.