WAPO – U.S. Probing Foreclosure Processing Firms

“Mail and Wire Fraud, Money Laundering, Conspiracy and Racketeering”

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U.S. probing foreclosure processing firms

By Ariana Eunjung Cha
Washington Post Staff Writer

The more banks foreclosed on homes, the more a little-known company in Florida called Lender Processing Services saw its revenue and stock price soar.

For a fee, the Jacksonville company would locate and assemble the documents necessary for a lender to foreclose on a borrower who defaulted on a mortgage. Working on behalf of the biggest names in the industry, including J.P. Morgan Chase, Bank of America and Citigroup, LPS says it handles more than half of all foreclosures in the country.

Now, amid reports of shoddy and possibly fraudulent paperwork, LPS as well as a handful of other document processors and law firms are coming under scrutiny for the criminal investigations into the foreclosure debacle.

Law enforcement authorities on both state and federal levels are probing whether individuals at these foreclosure companies and at the banks that hired them committed an array of possible crimes – mail and wire fraud, money laundering, conspiracy and racketeering. No charges have been filed.

These officials say they are taking a well-tested approach in their investigations: press low-level employees to implicate higher-up executives. Already, investigators have obtained in sworn testimony detailed descriptions of what took place inside the foreclosure companies.

Florida’s attorney general, Bill McCollum, said in an interview that “we know there are problems of great significance” at LPS. He added that one of the most important questions being asked is, “Does this involve the CEO” of a major bank?

“It’s way too early to tell whether the bigger financial institution had officers committing criminal fraud,” McCollum said. “It may be something that shows up, but it’s too early to say right now.”

LPS is fighting back against what it calls “misrepresentations” about the scope of its problems. It recently hired as consultants Tony Fratto, who was a spokesman for the George W. Bush administration, and Taylor Griffith, a former Treasury Department spokesman.

LPS spokeswoman Michelle Kersch on Monday said the company “is committed to providing authorities with any information that they need to better understand our business and the industry.” She declined to comment further.

Formerly a branch of Fidelity National Financial – the nation’s largest title insurer – LPS was spun off in 2008. It’s still housed in the same complex as the title company, in one of two twin 12-story buildings with expansive views of the Jacksonville waterfront. With 8,900 employees, it is one of the city’s largest employers.

Some homeowners contesting foreclosures have alleged that the firm’s employees forged signatures on paperwork that proves ownership of a loan. In other cases, the employees listed “Bogus Assignee” as the mortgage holder and “Bad Bene” as the borrower.

After The Washington Post reported in late September on several instances in which a single person’s signature on some foreclosure documents appeared to be scripted by different people, LPS admitted that a subsidiary called Docx in Alpharetta, Ga., improperly prepared some documents used for foreclosures. Company officials said that the paperwork problems were limited to filings made in 2008 and 2009 and that the division has since been shut down.

Continue reading here…

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4closureFraud.org

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I sure could use some…

Comments
16 Responses to “WAPO – U.S. Probing Foreclosure Processing Firms”
  1. J Glenn Lowe says:

    EVERYONE TELL OBAMA TO CRASH THE BIG BANKS NOW!

    Big Wall Street Banksters created the Foreclose Economy because they are that greedy and “Too Big to Care” about the American Dream and basic Contract Law. It was done by design and with treasonous and willful intent strictly for power and profit.

    The Illegal Securitized Mortgages that became the death blow to our economy actually bet on the foreclosure of the homeowner for as much as a 30 times return on investment. This is true financial terrorism. It is actually better for the investor to foreclose than to help someone stay in their home.

    Want to know how easy it is to fix this problem? Crash all of the Big Banks now and fund local banks only that serve to enrich local economies only. Look at the example of the state owned banks in North Dakota, whose population has only a 4% unemployment rate.

    The Fed and their complicit banks must be abolished to save the Republic!

    It’s the only thing we can do. CRASH THE BIG BANKS NOW “Too Big Too Fail” apparently means “Too Big To Succeed” and “Too Big for their own Wallets”

    The sooner the better. Why don’t we ask a 3rd grade math student what he thinks? The real problem is that a politician who could do something about it has his own mathematical challenges about healthy economies. “Bite the hand that feeds him” (by indicting Banksters), or make millions putting children in the streets for power and profit.

    Apparently ALL politicians are going to make the same choice over and over again. They have always sold the souls of your children and their future and they always will. Take the big Banksters out of the picture. Build a local banking system that cares about its community and helps it thrive instead of sucking the life out of it by bribing and fixing the entire system for itself, taking us all of a cliff with it.

    Crash all the big banks now. Create new local Banks only = No more Wall Street Banksters.

    Problem Solved!

    J Glenn Lowe

    Die Banker Die – A Tribute to the Wall Street Banksters that suck the life from all of us and our economy just to get a nice Christmas Bonus – http://www.youtube.com/watch?v=YGFZ1Jj3ui8

  2. Marla says:

    I have 2 questions:
    1. Does anyone know if any firms in Texas are being investigated as “foreclosure mills”?
    2. Does it make a difference if your loan is a Fannie Mae loan as far as dealing with Chase? My attorney is indicating that there are differences if the loan is a Fannie Mae loan.
    Thank you for all that you are doing!

  3. DebbiCat says:

    I did a records search on my mortgage. Originator was Impact Funding, Inc. in 2003 and I know they sold it to somebody but there is no assignment recorded. I was sending my payments to Wilshire Credit Corporation from 2003 until last year when BofA bought Merrill Lynch (who owned Wilshire) and now my payments are going to BofA. How can I find out who purchased my loan from Impact Funding? Any help would be appreciated.

  4. Reggie in PHOENIX says:

    someone needs to get to Arizona’s AG…He is a complete puppet. He is saying that because of the “mistakes” in the paperwork that they are finding, homeowners have a good chance of now negotiating with the banks!!!! huh????? I would love to just smack him in the face. Major LIB……..

  5. RAMONA says:

    this has devastated communities and you it affects entire cities. cities are scraping by trying to mailtain their staff, etc. why arent the city and state officials more involved in this mess? oh I forgot it’s the deadbeat homeowners causing this mess. they invented the way to rob the banks all across the united states, the banksters arent the ones who would do such a thing. they have little halo’s..

  6. Dave says:

    Can you say, SCAPEGOAT?

  7. PELUCHEVEN says:

    the regulators should not be probing anything, subpoena all their records before the shredding party is over. there are reports of shredding and fixing parties in some foreclosure mills around the Washington DC Metro area.

  8. PELUCHEVEN says:

    THERE WAS A NICE TICKER TODAY ABOUT DEUTCHSE BANK

    http://www.market-ticker.org
    and there is also some info on http://www.msfraud.org
    http://www.livinglies.wordpress.com

  9. PELUCHEVEN says:

    THEY SHOULD LOOK INTO “SAMUEL WHITE”, “RECONTRUST”, “BIERMAN AND GUIESING”,”MCCOB”, SHAPPIRO AND BURSTON” AND OTHER WASHONGTON DC METRO AREA PLAYERS.

    MANY OF THESE FORECLOSURE FACTORIES HAVE HAD A VERY PROFITABLE RUN, AND ALL THEIR DOCUMENTS RESEMBLE THE SAME ISSUES THAT WERE AND ARE STILL COMING OUT OF FLORIDA AND OTHER STATES. THIS IS NO ACCIDENT, THIS IS SYSTEMIC AND CRIMINAL. THEY SHOULD REVOKE THE LAW LICENSE OF ALL THESE CLOWNS.

    THEY HAVE MADE ALL OUR VIRGINIA, MARYLAND AND DC JUDGES LOOK LIKE CLOWNS. THEY HAVE LIED TO THE STATE, THEY HAVE LIED TO THE COURT, THEY HAVE MISREPRESENTED FACTS, FORGED DOCUMENTS OR — USED FORGED DOCUMENTS. THEY ALL HAVE PARTICIPATED IN ILLEGAL FORECLOSURES, THEY ALL HAVE STOLEN HOMES AND INCORPORATED INTO THE LAND RECORDS OF ALL OUR COUNTIES WRONGFUL LIENS, THEY HAVE ILLEGALLY AND WITHOUT PROPER AUTHORITY REQUESTED THOUSANDS OF LIFT OF STAYS IN BK FILINGS, THEY HAVE COME TO COURT WITH FAKE NOTES, WITHHELD RELEVANT EVIDENCE.

    THEY HAVE FORECLOSED ON MILLIONS OF AMERICAN EVEN THOUGH THEIR MORTGAGES WERE NEVER IN DEFAULT, ALL THOSE SECURITIZED MORTGAGES WERE PAID IN FULL MANY TIMES OVER.

    • James M says:

      I believe SHAPPIRO AND BURSTON is related to Shapiro & Fishman foreclosure mill in Florida.

      Both are part of the larger LOGS network of enterprises.

  10. leapfrog says:

    “It’s way too early to tell whether the bigger financial institution had officers committing criminal fraud,” McCollum said. “It may be something that shows up, but it’s too early to say right now.”

    Of course it is! Because you intend to protect your cronies.

  11. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    Everyday it gets better and better.

    Fidelity/LPS is involved in approximately 70% of foreclosures nationwide as the “default” servicer and despite its efforts to distance itself from forged and fabricated documents (they seem to have stopped executing affidavits of merit in later 2008 shortly after the IPO but do still execute bogus assignments of mortgage) by utilizing DOCX it is still neck deep in the whole mess.

    Stock price down 40% recently, and still with a way to go. I see the writing on the wall and am sure they do as well.

  12. juicejuice11550 says:

    AND DON’T FORGET ONE OF THE BIGGEST AS WELL “DEUTSCHE BANK & DEUTSCHE BANK NATIONAL TRUST CO”…………………THEY’RE ONE OF THE BIGGEST CROOKS AS WELL THAT’S FRAUDULENTLY FORECLOSING ON HOMES THEY DO NOT OWN WITH FORGED AND BOTCHED DOCUMENTS ….

    F R I V O L O U S

    • John says:

      Would someone post me the best info on Deutsche Bank fir me to present to a Judge.
      Thanks!

      • juicejuice11550 says:

        @ John do what I did. Just google Deutsche Bank cases and a bunch of them would come up. That worked for me.

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