Titanium Solutions Inc., a Salt Lake City company that contacts delinquent homeowners on behalf of lenders and servicers, said Monday that it promoted Spencer Erekson from executive vice president to president.
Mr. Erekson succeeded Todd Sibley, who remains the chief executive officer.
Before the two men co-founded the company in 1999, Mr. Erekson worked for more than 10 years as a real estate agent in Utah.
A lawsuit filed in a federal court last month alleged that Titanium crossed the line from simply communicating with borrowers, which the company says is its main business, to acting as a collections agent, which it is not permitted to do. Though Goldman Sachs Group Inc.'s Litton Loan Servicing LP was the sole defendant, the suit accused Titanium of gathering financial information from homeowners that would later facilitate collections by Litton.
Charles Bewley, a lawyer for Titanium, told American Banker at the time that its employees were prohibited "from doing anything to collect a debt, take a payment, or even mail a payment." He said the lawsuit may have a chilling effect on mortgage industry efforts to help troubled homeowners and result in a higher rate of foreclosures.