CEO of Litton Loan Disses Bankruptcy Judges

18 Oct CEO of Litton Loan Disses Bankruptcy Judges

As a possible remedy to the subprime mortgage crisis, Congress is currently considering a number of bills that would allow the Bankruptcy Court to modify the terms of residential mortgages. A story on NPR on October 17, 2007 discussing these bills, which would offer some protection to the millions of homeowners facing foreclosure from exploding ARM mortgages gave some insight to the thinking of the “big money” behind the subprime mortgage crisis. According to the story, although one housing group estimates that the bill could help over 600,000 people avoid foreclosure, those in the financial industry are dead set against it.

Larry Litton, Jr., the CEO of Litton Loan, was dismissive and insulting to bankruptcy judges:

“It’s an unmitigated disaster. You start giving bankruptcy judges the ability to go in and modify loans, and there’s no control over that. We don’t like it at all.”

Had somebody exercised a bit of control over Mr. Litton and his company when they were making NINJA (No Income No Job No Asset) loans, loans where monthly payments exceeded the borrower’s monthly income, loans where the monthly payments increased to levels that they knew the borrowers couldn’t afford, perhaps the financial market wouldn’t be in this mess in the first place.

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Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.

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