WELCOME TO THE SCHAFFER V. LITTON LOAN SERVICING LP SETTLEMENT WEBSITE

The case was brought on behalf of a nationwide class of borrowers with mortgages for which servicing was transferred to Litton Loan Servicing LP. The lawsuit contends, among other things, that Litton Loan Servicing improperly assessed late fees on timely and full payments made by borrowers to their prior servicer within sixty days after the effective date of the transfer of the loan to Litton for servicing, in violation of the Real Estate Settlement Procedures Act.

The proposed settlement between the parties is a compromise of disputed claims. The parties have negotiated the settlement in order to avoid the further costs, expenses, and uncertainties of litigation. The proposed settlement does not mean, and shall not be construed to mean, that Litton is liable with respect to any claim asserted in the complaint filed in this action.

The Class is defined by the Court as all individuals who:

(1) own or at any time on or after October 26, 2002, owned property in the United States;
(2) entered into a mortgage loan transaction which was then transferred or sold to Litton Loan Servicing LP or for which the servicing rights were acquired by Litton at any time on or after October 26, 2002; and
(3) made timely payments to the transferor servicer and were charged late fees relating to that payment within the first sixty days of the loan transfer to Litton.

Subject to the terms of the Settlement Agreement, and the Court's approval of the same, each Notice Recipient who submits a timely and valid Claim Form will receive a pro rata distribution of the Settlement Fund, of up to, but not to exceed sixty dollars ($60.00).

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IMPORTANT DATES

Deadline to File a Claim:	September 7, 2010
Deadline to Request Exclusion:	June 24, 2010
Deadline to Object to the Settlement:	June 24, 2010
Final Approval Hearing:	October 18, 2010 at 10:00 a.m.

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