2 States Subpoena LPS

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MORTGAGE EXPERT
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Lender Processing Services Inc. has been subpoenaed by attorneys general in two states over alleged robo-signing on foreclosure documents. Another service provider faces a similar subpoena.

California Attorney General Kamala D. Harris Wednesday announced that the state has subpoenaed LPS. At issue are alleged faulty affidavits tied to the “robo-signing” scandal as well as “other illegal activities in the mortgage servicing industry” involving foreclosure misconduct.

Documents for transactions handled between Jaunuary 2007 and next month are needed by the June 24 compliance date.

Harris claims that some servicing employees are blindly signing thousand of foreclosure documents

“Former LPS employees have testified that LPS designees ‘robosigned’ foreclosure documents,” the California attorney general’s statement said. “LPS prepared and recorded these foreclosure documents on behalf of many of the largest mortgage lenders and servicers in the country.”

LPS was additionally subpoenaed today by Illinois Attorney General Lisa Madigan. Also hit with an Illinois subpoena was Nationwide Title Clearing Inc., which like LPS, is based in Florida.

“Foreclosure became a rubber-stamping operation that robbed many homeowners of the American dream without a fair and accurate process,” Madigan stated.

LPS’ services are used on more than 30 million loans for more than $4.5 trillion, Madigan’s news release said. Nationwide counts the top 10 lenders among its clients and handles mortgage assignments.

“The probe will also include a complete review of the accuracy of the systems and services that LPS and NTC provide to the large lenders including servicing platforms, foreclosure attorney interaction with these platforms and the assignment of mortgage process,” the Illinois news release stated. “Former employees of LPS, NTC, or former employees of any residential mortgage servicer or bank who have knowledge of any unlawful practices relating to mortgage servicing or the execution of documents should call.”

LPS didn’t immediately respond to a request for a statement.

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