Lender Processing Services, Inc. – FORM 10-K – EX-21.1 – February 23, 2010 Legal Proceedings

Lender Processing Services, Inc. – FORM 10-K – EX-21.1

February 23, 2010

10-K – FORM 10-K – Lender Processing Services, Inc.

  • Foreclosure services.  As our lender and servicing customers proceed toward the foreclosure of properties securing defaulted loans, we provide services that facilitate completing the foreclosure process. For example, we offer lenders, servicers and attorneys certain administrative and support services in connection with managing foreclosures. We also offer comprehensive posting and publication of foreclosure and auction notices, and conduct mandatory title searches, in each case as necessary to meet state statutory requirements for foreclosure. We also provide due diligence and research services and various other title services in connection with the foreclosure process.
  • Property inspection and preservation services.  At the onset of a loan default, our services are designed to assess and preserve the value of the property securing the loan. For example, through a nationwide network of independent inspectors, we provide inspection services, including daily reports on vacant properties, occupancy inspections and disaster and insurance inspections. We also offer a national network of independent contractors to perform property preservation and maintenance services, such as lock changes, window replacement, lawn service and debris removal.
  • Asset management, default title and settlement services.  After a property has been foreclosed, we provide services that aid our customers in managing their real estate owned, or REO, properties, including title services and property preservation field services. We also offer a variety of title and settlement services relating to the lender’s ownership and eventual sale of REO properties. Finally, we offer nationwide advisory and management services, as well as a comprehensive REO auction solution, to facilitate a lender’s REO sales.

Legal Proceedings


In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. Often, these matters do not include a specific statement as to the dollar amount of damages demanded. Instead, they include a demand in an amount to be proved at trial. For these reasons, it is often not possible to make a meaningful estimate of the amount or range of loss that could result from these matters. Accordingly, we review matters on an ongoing basis and follow the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 450, Contingencies, when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, we base our decision on our assessment of the ultimate outcome following all appeals. We intend to vigorously defend all litigation matters that are brought against us, and we do not believe that the ultimate disposition of any of these lawsuits will have a material adverse impact on our financial position or results of operations. Finally, we believe that no actions, other than the matter listed below, depart from customary litigation incidental to our business.

Schneider, Kenneth, et al. vs. Lender Processing Services, Inc., et al.

On February 17, 2010 this putative class action complaint was filed in the United States District Court for the Southern District of Florida. In a single count complaint, the plaintiffs seek to recover unspecified damages for alleged violations of the Fair Debt Collection Practices Act relating to the preparation and use of assignments of mortgage in foreclosure actions. The defendants include two large banks, as well as LPS and our document solutions subsidiary. The complaint essentially alleges that the “industry practice” of creating assignments of mortgages after the actual date on which a loan was transferred from one beneficial owner to another is unlawful. The complaint also challenges the authority of individuals employed by our document solutions subsidiary to execute such assignments as officers of various banks and mortgage companies. Although we do not believe that our conduct falls under the provisions of the Fair Debt Collection Practices Act, at this early stage we are unable to accurately predict the outcome of this matter.

Regulatory Matters

Due to the heavily regulated nature of the mortgage industry, from time to time we receive inquiries and requests for information from various state and federal regulatory agencies, including state insurance departments, attorneys general and other agencies, about various matters relating to our business. These inquiries take various forms, including informal or formal requests, reviews, investigations and subpoenas. We attempt to cooperate with all such inquiries. Recently, during an internal review of the business processes used by our document solutions subsidiary, we identified a business process that caused an error in the notarization of certain documents, some of which were used in foreclosure proceedings in various jurisdictions around the country. The services performed by this subsidiary were offered to a limited number of customers, were unrelated to our core default management services and were immaterial to our financial results. We immediately corrected the business process and began to take remedial actions necessary to cure the defect in an effort to minimize the impact of the error. We subsequently received an inquiry relating to this matter from the Clerk of Court of Fulton County, Georgia, which is the regulatory body responsible for licensing the notaries used by our document solutions subsidiary. In response, we met with the Clerk of Court, along with members of her staff, and reported on our identification of the error and the status of the corrective actions that were underway. We have since completed our remediation efforts with respect to the affected documents.

Most recently, we have learned that the U.S. Attorney’s office for the Middle District of Florida is reviewing the business processes of this subsidiary. We have expressed our willingness to fully cooperate with the U.S. Attorney.

We continue to believe that we have taken necessary remedial action with respect to this matter.


And for those of you who like to play connect the dots, here is their Subsidiary list…

EX-23.1 – EX-23.1 – Lender Processing Services, Inc.

Exhibit 21.1

Lender Processing Services, Inc.

Subsidiary List

As of January 31, 2010

Jurisdiction of
Name and d/b/a Names Incorporation/Organization
A.S.A.P. Legal Publication Services, Inc.
Aptitude Solutions, Inc
Arizona Sales and Posting, Inc.
CyberHomes, LLC
Espiel, Inc.
Financial Technology (1)
FIS Applied Analytics (1)
LPS Applied Analytics (1)
Fidelity National Loan Portfolio Services, Inc.
Financial Systems Integrators, Inc.
FNIS Flood Group, LLC
FNIS Flood of California, LLC
FNIS Intellectual Property Holdings, Inc.
FNIS Services, Inc.
FNRES Insurance Services LLC
FNRES License Holdings Inc.
Inc.Texas Geotrac, Inc. (1)
Go Apply, LLC


Jurisdiction of
Name and d/b/a Names Incorporation/Organization
GO Holdings, Inc.
I-Net Reinsurance Ltd.
Turks and Caicos Islands
Lender Processing Services, LLC
Lender’s Service Title Agency, Inc.
LPS Agency Sales and Posting, Inc.
LPS Asset Management Solutions, Inc.
Provident Realty (1)
LPS Auction Solutions, LLC
LPS Capital Markets, LLC
LPS Default Solutions, Inc.
LPS Field Services, Inc.
LPS IP Holding Company, LLC
LPS Management, LLC
LPS Mortgage Processing Solutions, Inc.
LPS National Flood, LP
LPS Portfolio Solutions, LLC
LPS Property Tax Solutions, Inc.
National Data Technologies (1)
National TaxNet (1)
LPS Real Estate Data Solutions, Inc.
LPS Real Estate Group, Inc.
LPS Valuation Solutions, LLC
LPS Verification Bureau, Inc.
LRT Record Services, Inc.


Jurisdiction of
Name and d/b/a Names Incorporation/Organization
LSI Alabama, LLC
LSI Appraisal, LLC
LSI Maryland, Inc.
LSI Title Agency, Inc.
Agency, Inc. (1)
LSI Title Company
LSI Title Company of Oregon, LLC
LSI Title Insurance Agency of Utah, Inc.
LSI Title Insurance Agency of Wyoming, LLC
McDash Analytics, LLC
NationalSource Appraisal Services, LLC
NationalSource Settlement Services, LLC
National Title Insurance of New York Inc.
New York
NewInvoice, L.L.C.
OnePointCity, LLC
RealEC Data Exchange, LLC
RealEC Technologies, Inc.
RealInfo, L.L.C.
SoftPro, LLC
Softpro, LLC (1)
Registered d/b/a.

23 Responses to “Lender Processing Services, Inc. – FORM 10-K – EX-21.1 – February 23, 2010 Legal Proceedings”
  1. Florida Crime says:

    Send your LPS/MERS Fraudulent Assignments to:

    United States Attorney’s office, Middle District of Florida.

    400 N. Tampa Street, Suite 3200

    Tampa, FL 33602
    Phone: (813) 274-6000

  2. Two ongoing investigations need your help!

    Researchers at Fraud Digest call for emailed assignments of mortgage signed by certain individuals. Knowledge = Power! http://ning.it/9eistk

    Matt Weidner, Esq. Another call to action! “GET ME BOGUS ASSIGNMENTS AND AFFIDAVITS” http://ning.it/9SDiWW


  3. David says:

    I have evidence of a major foreclosure-mill submitting FORGED documents to the Maryland Land Records & the Courts – committing FRAUD Upon the Court… Forensic Handwriting Expert documented there are at least FOUR different people signing the lawyer’s name AND at least TWO different people signing for the Notary.

    The JUDGE KNOWS it – when we busted the law firm they withdrew their foreclosure BUT THEY ARE STILL DOING FORECLOSURES in our state and other states. They foreclosed on over 8000 families last yr in Maryland alone! Over 6000 in Virginia. This is NOT a joke nor exaggeration. They continue to ILLEGALLY foreclose on families EVERYDAY…

    I have the evidence – including the the PSA and other documents also proving other frauds and breaches of contracts… IS THEIR ANY LAW FIRMS LEFT with any INTEGRITY…?

    HELP US SHUT THESE PEOPLE DOWN… I will gladly send the docs electronic format as proof…

    • Raja says:

      David please call me on 540-687-0004.

    • Annette says:

      Hi David, I don’t know how this blogging works. this is Annette in Florida I have been in active foreclosure since 2008, I’m just reading your post June 19, 2013. I have the same proof as you do. I have presented the same to the court. The judge is in the lenders pocket. Any suggestions Annette In Florida

  4. H Gosh says:

    Question: Does anyone know under what authority LPS accesses IRS and SSA files to verify information, as claimed in their 10K?

  5. Robbed says:

    LPS, (FIS, et al,) disclosed an “error” in “certain documents” regarding foreclosure documentation… (So were ALL of them, 100,000’s or millions of documents, “fraudulent/forged” assignments over how many years?) This will be interesting. If you and I forged an official government document such as a mortgage assignment, wouldn’t we go to prison?

    This unfolding story rates a bag of popcorn and a coke…

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