FREQUENTLY ASKED QUESTIONS (FAQs)

1.     What is this lawsuit about?

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.

Litton denies that it engaged in any such actions and denies any wrongdoing or liability on its part in connection with plaintiffs' individual and class claims. The Court has not ruled on the merits of the plaintiffs' individual or class claims or defenses and the Court has made no determination of wrongdoing or liability against Litton or in favor of the plaintiffs or the Class.

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.

2.     Why did I receive this Postcard?

The Postcard is given pursuant to an Order of this Court. The Postcard informs you that there is a settlement pending in a lawsuit that may affect you.

Your receipt of the Postcard, however, does not mean that you are a member of the class. Rather, the Postcard is being provided to all individuals who were assessed a late fee by Litton within the first sixty (60) days after the effective date of the loan servicing transfer to Litton. To be a member of the class you must meet the following criteria: servicing of your loan was transferred to Litton, you made timely and full monthly payments to your prior servicer, and you were assessed a late fee by Litton related to such payments within the first sixty days after the effective date of the transfer of the loan to Litton for servicing, despite such timely payment.

For more details regarding this litigation and to obtain a complete copy of the Class Notice, please go to www.latefeessettlement.com.

3.     Who is in the Class?

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.

Your receipt of the Postcard, however, does not mean that you are a member of the class. Rather, the Postcard is being provided to all individuals who were assessed a late fee by Litton within the first sixty days after the effective date of the loan servicing transfer to Litton. To be a member of the class, you must meet the following criteria: servicing of your loan was transferred to Litton, you made timely and full monthly payments to your prior servicer, and you were assessed a late fee by Litton related to that payment within the first sixty days after the effective date of the loan servicing transfer to Litton despite such timely payment.

For more details regarding the Postcard or the litigation, please go to www.latefeessettlement.com.

4.     What are my options?

You have four options. You may 1) File A Claim; 2) Exclude Yourself; 3) Object to the Settlement; or 4) Do Nothing.

To file a claim, please return to the Main Menu and select option 1, to have a Class Notice and Claim Form mailed to you. You can also go to www.latefeessettlement.com and download a Claim Form to fill out and mail to the Claims Administrator. To be valid, the Claim Form must be postmarked on or before September 7, 2010. If you submit a timely and valid Claim Form, you may be eligible for a monetary settlement award and you will be bound by the terms and conditions of the Settlement Agreement.

You may exclude yourself by taking the steps set forth in the Class Notice and submitting a notice requesting exclusion that is postmarked no later than June 24, 2010. If you file an exclusion, you will not receive a monetary settlement award and you will not be bound by the terms of the Settlement, as described fully in the Class Notice.

If you do not exclude yourself, you may object to the Settlement. To properly object, you must take the steps set forth in the Class Notice and file your objection with the Court and serve it upon the appropriate parties no later than June 24, 2010. If you object, and the Court rejects your objection, you will still be bound by the terms of the Settlement, as described fully in the Class Notice.

If you do nothing, you will not receive a monetary settlement award and you will be bound by the terms of the Settlement, as described fully in the Class Notice.

The Court will hold a hearing at 10:00 am on October 18, 2010 to consider whether to finally approve the settlement, and whether to grant Class Counsel's request for attorneys' fees and expenses. You do not have to attend the hearing. For more information please go to www.latefeessettlement.com.

5.     What are the settlement benefits for Class Members?

The total Settlement Amount for the entire case is $532,500.00.

The Net Settlement Amount is the amount remaining after subtracting attorneys' expenses and costs, incentive award to the class representatives, and the fees and expenses of the Claims Administrator.

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 using the "Proof of Claim" Form will receive a pro rata distribution of the Settlement Fund, of up to, but not to exceed, sixty dollars ($60.00), after deductions from the Settlement Fund of (1) the costs of the Claims Administrator; (2) Class Counsel's Fees and Costs, which shall not exceed Two Hundred Thousand Dollars ($200,000.00); and (3) Ten thousand dollars ($10,000.00) in total for payments to the Named Plaintiffs. The actual amount that each Claimant receives will depend upon the number of valid Claimants. The settlement benefit will be distributed out of the Settlement Fund through checks issued by the Claims Administrator.

Only one claim will be paid and only one settlement check will be issued for each loan.

For more information please go to www.latefeessettlement.com.

6.     How do I file a Claim Form?

To file a Claim From, return to the Main Menu and select option 1, to have a Class Notice and Claim Form mailed to you or go to www.latefeessettlement.com and download the Class Notice and Claim Form to fill out and mail to the Claims Administrator.

To receive money from the Settlement, you must complete and sign the Claim Form and mail it so that it is postmarked on or before September 7, 2010 and addressed to the Claims Administrator. The address of the Claims Administrator is:

Schaffer v. Litton Loan Servicing Settlement
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 808054
Petaluma CA 94975-8054

7.     What if I want to exclude myself from this Class Action?

If you do not want to participate in the Settlement, you must file an exclusion with the Claims Administrator postmarked on or before June 24, 2010. The exclusion must be in writing, state your current address, former address if different from the address to which the Class Notice was addressed, and the address to which the Class Notice was addressed, loan number OR the last four digits of your social security number and contain a signed statement that "I/we hereby request that I/we be excluded from the proposed settlement class in the Schaffer v. Litton Loan Servicing LP litigation." A request for exclusion that does not include all the foregoing information, that is not sent to the address specified, or that is not sent within the time specified will be invalid, and the person(s) serving such a request will be bound as a Settlement Class Member, provided that the Settlement Agreement is finally approved. Only you can request exclusion. No one can request exclusion for another person, except in cases of disability, guardianship or conservatorship. The request for exclusion must be sent to:

Schaffer v. Litton Loan Servicing Settlement
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 808054
Petaluma CA 94975-8054

If you request exclusion, you will not receive a monetary settlement award, nor will you be bound by the terms of the proposed Settlement Agreement.

8.     What is the address of the Claims Administrator?

Schaffer v. Litton Loan Servicing Settlement
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 808054
Petaluma CA 94975-8054

9.     What if I want to file an Objection with the Court?

You have the right to object to the Settlement so long as you are an actual Class Member. Notice Recipients who exclude themselves from the Settlement and Notice Recipients who are not actually members of the class have no right to file or present any objection.

If you wish to submit an objection rather than simply exclude yourself from the action, you must file your objection in writing to the Clerk of the Court for the United States District Court for the Central District of California, U.S. Courthouse, 312 N. Spring Street, Los Angeles, California 90012 no later than June 24, 2010. Your objection should reference the name of the case, Schaffer et al. v Litton Loan Servicing LP, and the case number, 05-7673. Copies of your written objection must be mailed to Class Counsel and Litton's Counsel by the same date. To object, you must include (a) proof of your membership in the Class, which will be sufficiently shown by providing documentary evidence that you were assessed a late fee by Litton within the first sixty days after the effective date of the loan transfer of Litton, and that you made a full and timely payment to your prior servicer; (b) the specific ground for the objection and any other reasons why you desire to be heard; and (c) any documents or writings that you desire the Court to consider. Please see the Class Notice for further instructions.

10.   Who is Class Counsel and what is their address?

The following attorneys represent the Named Plaintiffs and the Class:

Kelly M. Dermody
Heather H. Wong
Lieff, Cabraser, Heimann & Bernstein, LLP
275 Battery Street, 29th Floor
San Francisco, CA 94111

Elizabeth Alexander
Lieff, Cabraser, Heimann & Bernstein, LLP
150 Fourth Avenue, N., Suite 1650
Nashville, TN 37219

Niall P. McCarthy
Cotchett Pitre & McCarthy
840 Malcolm Road, Suite 200
Burlingame, CA 94010; and

Daniel J. Mulligan
Jenkins Mulligan & Gabriel, LLP
10085 Carroll Canyon Road
Suite 210
San Diego, CA 92131

11.   When is the Final Approval Hearing being held?

The Final Approval Hearing will be held on October 18, 2010 at 10:00 a.m.

12.   What are the important dates to remember?

A Claim Form must be postmarked on or before September 7, 2010.
An Exclusion must be postmarked on or before June 24, 2010.
An Objection must be filed with and received by the Court on or before June 24, 2010.

13.   Where can I get additional information about this settlement?

For more details about the case, settlement, or your rights, please go to www.latefeessettlement.com, or write to:

Schaffer v. Litton Loan Servicing Settlement
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 808054
Petaluma CA 94975-8054

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