Archive for December 16th, 2011

Nevada Attorney General Sues LPS

Lender Processing Services is the largest provider of mortgage default services in the United States, processing more than 50% of all foreclosures in America.  Today, the Nevada Attorney General sued LPS, alleging it:

1.  Engaged in a pattern and practice of falsifying, forging, and/or fraudulently executing foreclosure related documents, resulting in countless foreclosures that were predicated on deficient information;

2.  Required employees to execute and/or notarize up to 4,000 foreclosure related documents every day;

3.  Fraudulently notarized documents without ensuring that the notary did so in the presence of the person signing the document;

4.  Implemented a widespread scheme to forge signatures on key documents, to ensure that volume and speed quotas were met;

5.  Concealed the scope and severity of the document execution fraud by misrepresenting that the problems were limited to clerical errors;

6.  Improperly directed and/or controlled the work of foreclosure attorneys by imposing inappropriate and arbitrary deadlines that forced attorneys to churn through foreclosures at a rate that sacrificed accuracy for speed;

7.  Improperly obstructed communication between foreclosure attorneys and their clients; and

8.  Demanded a kickback/referral fee from foreclosure firms for each case referred to the firm by LPS and allowed this fee to be misrepresented as “attorneys’ fees” passed on to Nevada consumers and/or submitted to Nevada courts. 

These allegations are so powerful I see no need to elaborate.  Instead, I’ll ask you this … if these things happened in Nevada, what are the chances they didn’t happen in Florida and every other state?

Mark Stopa

Posted in Main | 3 Comments »

Finally!! SEC Sues Former Fannie, Freddie Executives

The Securities and Exchange Commission sued several former executives of Fannie Mae and Freddie Mac, alleging they misrepresented to investors their exposure to subprime loans.

It’s not a criminal complaint, but it’s about damn time the U.S. Government did something.  Let’s hope this is just the beginning.

Mark Stopa

Posted in Main | 1 Comment »