KABOOM | Attorney General Kamala D. Harris Subpoenas Lender Processing Services (LPS) in Wide-Ranging Probe of Mortgage and Fraudclosure Practices

 
State of California Department of  Justice
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Press Release

May 25, 2011
For Immediate Release

Attorney General Kamala D. Harris Subpoenas Loan Processor LPS in Wide-Ranging Probe of Mortgage and Foreclosure Practices

LOS ANGELES – Attorney General Kamala D. Harris today announced she has subpoenaed Lender Processing Services, Inc. (LPS), as part of her continuing probe into “robosigning” of mortgage documents and other illegal activities in the mortgage servicing industry, especially misconduct affecting borrowers facing, or in the midst of, foreclosure.

Robosigning is the practice of signing documents used by banks or mortgage servicing companies to foreclose on borrowers without verifying their accuracy – often thousands of different documents signed by a single individual per day. In many cases, the robosigners don’t even read or understand the document they are signing.

“California homeowners have been exposed to fraud and crime at every step of the mortgage process,” said Attorney General Harris. “Justice demands we come to their aid and a key step in that is to investigate robosigning and the potential for inaccurate or unjust foreclosures.”

Former LPS employees have testified that LPS designees “robosigned” foreclosure documents. LPS prepared and recorded these foreclosure documents on behalf of many of the largest mortgage lenders and servicers in the country.

The Attorney General’s investigative subpoena requires LPS to produce documents and provide written answers to questions from the Attorney General’s office. The time period covered by the subpoena runs from Jan. 1, 2007, until just before the compliance date, which is no later than June 24 of this year.

LPS, based in Jacksonville, Fla., with several offices in California, provides loan management services to mortgage lenders, including document preparation services and a software platform used by much of the mortgage industry. According to its website, LPS systems are used for servicing over 50% of all mortgages in the United States and more than 80 financial institutions contract with LPS to service more than 30 million loans with an outstanding principal balance exceeding $4.5 trillion.

Attorney General Harris warned that the risks posed by robosigning are particularly dangerous in non-judicial foreclosure states such as California, where the courts typically are not involved in overseeing the foreclosure process.

On Monday, Attorney General Harris announced the creation of a Mortgage Fraud Strike Force, staffed by two dozen Department of Justice attorneys and investigators to monitor and prosecute violations at every step of the mortgage process, from the origination of mortgage loans to the marketing of mortgage-backed securities to the investing public.

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Comments
9 Responses to “KABOOM | Attorney General Kamala D. Harris Subpoenas Lender Processing Services (LPS) in Wide-Ranging Probe of Mortgage and Fraudclosure Practices”
  1. Andrea Guice says:

    “…follow the ‘papertrail’…’catch the ‘fraud’ & ‘perpetrators’. The ‘papertrail’ doesn’t ‘lie’!
    Banksters commit ‘fraud’ (lie) like animals ‘kill’…
    they ‘both’ have ‘no conscience’ of their ‘heinous’ & ‘destructive nature’…. AN ‘ANIMALs NATURE IS: “IT DOES NOT CARE” when it destroys anything as long as ‘it’ satisfies ‘its’ appetite!
    ‘Greed’ is the ‘animal nature’ of ‘some types’ of human beings, & the question: “who are these ‘people’…banks…’Wall St….the ‘wealthiest 1%’…?”, which ‘feed’ off any ‘other’ as ‘animals’ do! The answer: ‘Those who control the ‘financial system’… diseased by ‘hereditary ‘sic_ness’!,
    the nature of destruction, “animal.” Otherwise, there would be a ‘balance’ in society &, the World. The lack of ‘World peace’ is due to ‘human types’ with insatiable ‘hungers’, ‘greed desires’, by inherent ‘animalistic DNA’. They did not ‘evolve’ sufficiently to attain a ‘higher level of intellect’! Otherwise, they would ‘know’ it is impossible to ‘control’ what they ‘truely’ don’t possess…. ‘humanity’. Which, if these ‘morons’ knew that, … Our country, US, would not be in this ‘turmoil’…& there would be ‘human’ ‘balance’, instead of the constant ‘animalistic territory warfare’. Some…have not evolved, & the outward ‘superficiality’ doesn’t hide the ‘truth’. The value would be on ‘human life’, not on the ‘destruction of it’! Andrea Guice

  2. lizinsarasota says:

    The obvious question here is: where is FLORIDA? Where is whatshernose, Pam Bondi? Considering that FLORIDA was the epicenter of foreclosure fraud – really leading the nation, how wonderful for our state! – FLORIDA should be leading the way in investigations and prosecution! After all, Lender Processing Systems is just up the road (from me) in lovely, downtown Jacksonville! Why isn’t Pammy Pie sticking her nose into LPS’s business? Why isn’t she being more staunch about investigating the FLORIDA foreclosure mills, of which there are so, so many? Why doesn’t she say to the FLORIDA Bar: listen, our good names as FLORIDA lawyers have been besmirched by the shenanigans of these foreclosure mills. Our citizens’ trust in the integrity of FLORIDA attorneys has been shattered. Our citizens’ belief that FLORIDA lawyers – including judges! – are an ethical bunch is in the toilet. Half the citizenry believes we are all on the take, and the other half isn’t so sure. We’ve got to launch an INVESTIGATION and come together: AG, Bar, Judges, Feds, etc. – and fight for our citizens’ respect after this terrible lapse in proper legal behavior, which happened on our watch and has been going on FOR YEARS. Let’s not worry about how it happened so much or who allowed it to happen – so much – let’s start an INVESTIGATION and let the chips fall where they may. Let’s get the INVESTIGATION going, let’s set up a task force, let’s start to prosecute the bastards and let’s put some of them in JAIL. Let’s show the citizens of FLORIDA, and thereby the nation, that we won’t sit idly by, that FLORIDA is a place where citizens came come to court and not have to worry – so much – about being faced with a slew of fraudulent filings by the big guys.
    Man alive, if I was a FLORIDA lawyer, I’d be mad as hell and spitting nails.
    I’m not, and I’m still mad as hell. I’m mad as hell and this took me about 15 seconds to write.
    Still, this has made me look differently – fundamentally – at the world, and especially at the very people – bankers, lawyers – who we all thought were so smart. Who we all thought were so ethical. What a joke. It’ll be a cold day in hell before I trust another banker or lawyer. As far as I’m concerned, with a few exceptions, they are all whores.
    Ms. Bondi, you can take that to the bank.

    • housemanrob says:

      Dear Liz, We have to stop the corruption first (there is a lot of MONEY in florida) then we can put a team of law enforcement together to prosecute the banks and rocket docket lawyers, including all who have committed rico related offenses, then create an army of TRUE consumer advocates, whom we can trust………….for we will go to war with the banks! It is inevitable!

  3. We are so glad we got it right in CA.with Kamala D Harris she is one of the few heroes left besides AG’ from NY and Hawaii
    Thank you ! Kamala D Harris

  4. angry & NOT TAKING IT! says:

    the feds will soon be lodged in litton loan & goldmens sack will have to watch will they are violated
    .where the hell is that laughing mouse??!!hahaha
    http://www.reuters.com/article/2011/05/25/goldman-mortgage-probe-idUSN2518599420110525

  5. Fury says:

    it is like matt taibbi said, the fraud is there. it depends on whether you want to see it and how much you see.
    homeowners have been swindled.

  6. Fury says:

    right on, kamala harris.
    go after these fraudsters!!!!

  7. housemanrob says:

    iT IS ALL RIGHT THERE. LPS WHISTLEBLOWERS CONFIRM ALL WE ALREADY KNOW! IF MAJOR INDICTMENTS AND TRIALS DO NOT OCCUR…………THEN WE KNOW WHERE WE STAND AS AMERICA’S MIDDLE CLASS!

  8. Nongkoashie says:

    Thank you “Madam Kamala Harris” we never get wrong in voting for you in that position.

    We would like also to suggest that you look at the Judges who were involved in tolerating “Illegal Foreclosure and Eviction”. They should be “KABOOMED” TOO.

    Thank you.

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