Criminal Subpoena Issued Against LPS

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MORTGAGE EXPERT
6 · 15 · 11

Less that a month after subpoenas were issued against Lender Processing Services Inc. by attorneys general in California and Illinois, an attorney general in a third state has issued criminal investigative subpoenas against the company and its affiliates.

Late last month, California Attorney General Kamala D. Harris said the state subpoenaed LPS over alleged faulty affidavits tied to the “robo-signing” scandal as well as “other illegal activities in the mortgage servicing industry” involving foreclosure misconduct.

The same day, Illinois Attorney General Lisa Madigan subpoenaed LPS as well as another closing services firm based in Florida.

Now, Michigan Attorney General Bill Schuette has announced that he issued criminal investigative subpoenas against LPS as well as LPS-subsidiary DocX, Fidelity National Financial Inc. and CT Corporation system.

Schuette wants to look at documents used in the firms’ foreclosure and bankruptcy document-processing operations.

The subpoenas are an expansion of an investigation into “allegations of forged mortgage documents” filed with register of deeds offices in Michigan. That investigation started in April.

The investigation was prompted by statewide calls from county officials indicating suspected forgeries on mortgage assignments.

The statement highlighted a recent episode of 60 Minutes that identified “Linda Green” signatures on thousands of DocX documents — though in many different variations. Similar findings were reported by county officials in Michigan.

“Schuette is investigating whether certain mortgage processing companies permitted such robosigning of legal documents filed in connection with Michigan foreclosures,” the announcement said. “Apart from the question of whether falsified signatures were used, robosigning may also involve individuals signing affidavits to signify that mortgage documentation was properly prepared without ever conducting a proper review of the documents. Although Michigan is a non-judicial foreclosure state, Schuette is reviewing whether robosigned documents may have been filed with courts in limited cases.”

The subpoenas were pursued under the state’s Code of Criminal Procedures, MCL 767A.2(2).

The firms have until June 30 to provide the requested information.

Michigan is fishing for current and former employees who are aware of any unlawful practices.

LPS spokeswoman Michelle Kersch ignored a previous request for a statement about the California and Illinois subpoenas.

Mortgage Expert

Mortgage Daily Staff

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