Litton Loan (“Litton”) kicked off this reign of fraud (2005) when it began falsely increasing
the principal balance of my mortgage by
failing to record payments received. Rather than become enthralled in Litton’s deception,
I decided to refinance (i.e. refi) to get it out of their hands. I had offers from Chase
and Fremont Investment and Loan. I chose Fremont. The former Fremont employee who initiated
the fraudulent mortgage was referred by a long-time colleague and friend. My requirement
in a mortgage company was to provide a firm, fixed rate mortgage at a rate that was competitive
with what Chase offered (~ 6%). That requirement was reaffirmed with Fremont and other contenders
clearly and repeatedly. Only Chase and Fremont offered loans that met my requirements. I
chose Fremont because Chase made costly loan errors in the past and the Fremont employee
was a referral from a colleague. I had several communications with this person for about
3 months before meeting to execute the mortgage. I met the Fremont employee in their New
Jersey office, greatly extending my bi-weekly drive between NJ and DC.
After signing the first page I immediately noticed that it was for an adjustable rate note at the 7% interest rate. I stopped immediately; confronting the Fremont employee and told this person I would continue to DC and refinance with Chase. This person apologized profusely. I refused to proceed unless this person called Fremont headquarters in California to reconfirm my deal. I waited a considerable amount of time and this person went to have the conversation and returned after a while with the mortgage we had agreed upon. When I asked for the page that I had signed, this person said they had already destroyed it. I signed the remaining pages and agreed to sign the [financials] page after this person confirmed the approximately $35K principal balance to be transferred and the amount to be advanced. This person thought Fremont could advance a larger amount.
I called Fremont in California a few days later, from DC, to confirm that the mortgage agreed upon had indeed been received. This was within the timeframe that the law allowed me to cancel the mortgage. Another Fremont employee, also on my subpoena list, confirmed that the correct loan agreement had been received. This person also told me that I would not receive the advance for several weeks and that the first bill would be sent soon after that.
When I received the first bill, I was irate. The payment amount did not match the principal or the interest rate. I called Fremont in California to let them know the problem and that I wanted to cancel the mortgage. The Fremont CA contact apologized profusely. This person told me it was not possible to cancel because funds had been transferred. They did offer to adjust and correct the rate with a refinance. After an extremely apology and explanation of how their error would be fixed, I learned that their solution would only cost me 1 month’s interest. I agreed with one stipulation. I gave them a deadline to get it done and fax me the note. Little did I know then that Fremont was under investigation by the Federal Deposit Insurance Corporation (FDIC)!.
As I dealt with the passing of my father (Jan. 2007); my property being listed with a new realtor (~2007); moving forward in the acquisitions process with multiple Federal agencies; and executing the mortgage (March 2007), I never imagined that this regulated financial services firm was facing a cease and desist order. I was assured that the mortgage had been corrected and filed. I had received a copy of the revised mortgage (without payoff and advance) and would receive the advance and payoff, then a copy of the filed document.
The next thing I knew, Litton Loan, the company that I escaped from with the refinance, contacted me to tell me that Fremont was out of business and they owned my mortgage again!
I explained to the new Litton Loan employees what happened with Fremont and with Litton Loan
before that. They understood that I had names and copies of communications including
the corrected mortgage. I told them that I would not pay until my mortgage had been properly
corrected. Payment of the mortgage would have confirmed that I agreed with it. After
some checking, Litton Loan had a different person contact me. I was told they would not
change the principal amount but they would restructure the mortgage to fit the cash flow
requirement for my budget. This let me know that they had inflated the principal balance
because making the effort to correct it would prove their crime. I was now very close
to receiving a Federal task order and Federal contract job offer that would allow my
firm to receive strategic and lucrative task orders. This was a major step towards completing
my retirement plan. One Federal senior contracting officer had told me that a small task
order for my firm was $5M. My firm had qualified for task orders in excess of $20M .
So eating the $300,000 loss from fraud by Litton Loan and Fremont was an unfortunate
no brainer. Litton Loan committed that they would restructure my mortgage. I knew that
I would be able to pay it off in less than 2 years.
After several weeks, Litton Loan representatives told me that they would get me a HAMP refinance of my mortgage but it would take a little longer. When I expressed concern about the longer time and my ability to qualify, I was assured that Litton Loan would refi the mortgage themselves if HAMP was not approved . At this point, I needed the refi to pass the Federal security clearance required to finalize the contract job offer that I was going to receive from the U.S. Department of Homeland Security. It was too late to refi with another firm. Besides, Litton Loan representatives assured me that now they were owned and backed by Goldman Sachs . They assured me that their bad reputation was behind them because Goldman Sachs ensured they would deliver . I confirmed that Litton Loan was fully held by Goldman Sachs. Accepting their overstated refi mortgage was the best course of action that would not interfere with what I needed to do to secure my firm’s task orders that I had worked decades to obtain.
I proceeded, doing everything that Litton Loan required . Despite many verbal and even a written assurance, Litton Loan took my money, foreclosed, and then illegally cashed my checks all while they contended the refi papers were being processed. I then began to lose everything .
As the underwriter of my troubled mortgage, I tried to enlist the help of HSBC. I made several phone calls to HSBC employees followed by a letter on June 10, 2010 to Brendan McDonagh, HSBC CEO, asking that they intervene. I had many conversations, explaining the responsibility of the underwriter and questioning the directives given to mortgage originators. I had just visited the State of New Jersey Hall of Records for Essex County and knew that the mortgage had not been filed. I knew that HSBC had a responsibility to uphold errors with mortgages they had underwritten and were likely carrying on their balance sheet. This was more important since Fremont had been put out of business by the Federal Deposit Insurance Corporation (FDIC). I had appealed to HSBC’s business motives in my letter to McDonagh rather than threaten them by pointing out their responsibility. McDonagh left HSBC in 2010. The following year, HSBC laid off 30,000 employees. The U.S. Senate named McDonagh in a report on HSBC’s compliance failures in 2012. Clearly, problems with HSBC’s operations ran deep. After many calls and over a year after receiving my letter, HSBC declined to intervene on August 3, 2011. This is particularly devious now that HSBC is paying the legal fees for all Defendants.
Not too long after that response, I began receiving collection notices and calls from Ocwen. After Litton Loan and Goldman Sachs failed to show up at our court hearing at New Jersey Superior Court, I learned that Goldman Sachs had sold Litton Loan to Ocwen. Now I was faced with having to restart the process of fixing errors in my mortgage with Ocwen. This was weeks after HSBC declined to intervene. I made many calls to Ocwen in an effort to identify who had the authority to rectify my problem. I sent facsimiles and emails to Ocwen’s Executive Office. Finally, on September 24, 2012 I received a confirmation email from Erby, Ocwen CEO but no one has responded. Ocwen was added as a defendant in the complaint filed in 2013. Their collection efforts continue to stop me from obtaining credit necessary to effectively run my business. Experian affirmatively confirmed in January 2018 that Ocwen will not be removed from my credit report.
Litton Loan and Fremont Investment and Loan each added unwarranted amounts – over $200K – to the principal balance of my mortgage and then went out of business. The US DOJ gave Fremont a cease and desist order shortly after I moved my mortgage to them to get it out of the hands of Litton Loan. Goldman Sachs bought Litton Loan and they bought my mortgage from Fremont. Litton Loan assured me that they were reputable now that Goldman Sachs owned them. So rather than refinance with Chase, I agreed to refinance with Litton Loan to get a better rate and access equity easily. Choosing Litton also allowed me to proceed quickly without endangering the impending revenue for my firm. Litton Loan agreed several times to give me a modification. To my surprise and chagrin, days before my Federal security clearance was to be approved, Litton Loan foreclosed just in time for financial firms to be eligible for impending TARP funding and preferred treatment. In defiance of NJ laws, Litton cashed my mortgage payments after they foreclosed. I subsequently lost a Federal job, task orders, my firm’s Federal Supply Schedules, committed financing and more. After trying to work out a resolution with Litton Loan and Goldman Sachs for over 3 years, I filed a complaint with the NJ Superior Court in 2010. This summary refers to Fremont Investment and Loan (Fremont) that is now out of business. The defendant, Fremont Home Loan Trust Mortgage Backed Certificates, continues to lay claim to fraudulent mortgage to which it is not entitled.
There is more incriminating evidence in the 4,000+ pages filed with the U.S. District Court click to view many of the files from US Case 2:16 cv-05301.
I implore the Court to accept my revised complaint, deny the Defendants’ Motions to Dismiss, and allow me to proceed to trial.