KABOOM | Illinois Attorney General MADIGAN ISSUES SUBPOENAS Against Lender Processing Services (LPS) & Nationwide Title Clearing (NTC)


Chicago — Attorney General Lisa Madigan today expanded her investigation into “robosigning” practices, issuing subpoenas against two national mortgage servicing support providers. The subpoenas are the latest effort in Madigan’s ongoing probe into the fraudulent practices used by banks and other mortgage institutions that contributed to the collapse of the U.S. housing market and the subsequent global financial crisis.

Madigan issued subpoenas against Lender Processing Services Inc. and Nationwide Title Clearing Inc., two Florida-based corporations that provide “document preparation services” and other loan management services to mortgage lenders for use against borrowers who are in default, foreclosure or bankruptcy.

“Foreclosure became a rubber-stamping operation that robbed many homeowners of the American Dream without a fair and accurate process,” Attorney General Madigan said. “I will not relent in my investigation into the fraudulent practices by lenders and others that caused and exacerbated the mortgage crisis and the resulting massive foreclosure crisis.”

Lender Processing Services (LPS) provides loan servicing support for more than 50 percent of all U.S. mortgages. More than 80 financial institutions use LPS to service more than 30 million loans. These loans have an outstanding principal balance exceeding $4.5 trillion.

Nationwide Title Clearing (NTC) provides a range of mortgage loan services to eight of the top 10 lenders and mortgage servicers in the country. NTC specializes in creating, processing and recording mortgage assignments, which are often needed for a lender to foreclose on a borrower.

Madigan will investigate reported allegations that LPS and NTC engaged in the practice of “robosigning” legal documents filed with the court to foreclose on borrowers. Robosigning occurs when an individual has no knowledge of the information contained in the document and often doesn’t even read or understand the document that he or she is signing. The use of robosigned documents was pervasive as lenders foreclosed on borrowers’ homes. The probe will also include a complete review of the accuracy of the systems and services that LPS and NTC provide to the large lenders including servicing platforms, foreclosure attorney interaction with these platforms and the assignment of mortgage process.

Attorney General Madigan said former employees of LPS, NTC, or former employees of any residential mortgage servicer or bank who have knowledge of any unlawful practices relating to mortgage servicing or the execution of documents should call her Homeowner Helpline at 1-866-544-7151 to aid in the investigation.



10 Responses to “KABOOM | Illinois Attorney General MADIGAN ISSUES SUBPOENAS Against Lender Processing Services (LPS) & Nationwide Title Clearing (NTC)”
  1. lizinsarasota says:

    One thing that isn’t getting a whole lot of discussion – yet – is that this situation is threatening our entire judicial system. Our courts are nearly bankrupt here in Florida. The legislature did not continue what’s basically emergency funding (but, boy, we sure can pass laws restricting abortion!) for our courts, and courts across the state are coming to a standstill.
    This is all caused by foreclosure litigation. Since the litigation brought by banks is largely founded on fraud, most – if not all – of our current issues with court funding stems directly from fraud perpetrated by the banks.
    I sure as hell hope that our Florida AG – who has so far showed herself to be completely unembarrassed by our state’s role in this national scandal – will be able to draw the straight line between banks’ fraud and our courts’ woes and sue the banks, fine the banks – whatever it takes.
    Is it a coincidence that, at a time when we need leadership like never before, Florida has a crook and a weakling at the helm?
    What’s happening now is criminal!

  2. Jason Werner says:

    Lisa Madigan is another one of those weak AGs. She acts tough with the AGs, then folds.

  3. Fury says:

    i am glad that another AG seems to have broken away from the tom miller pack.

    i pray that all AGs will go after the perpetrators of fraud in the origination and fraud in the foreclosure.

    LPS is certainly one of the biggest fraudsters.

  4. l vent says:

    I have some forgeries of mine and my husbands signatures on the copy of my note and mortagage on my home as well as my commercial property. as well as some fake notaries signatures. I have fake bank ass. V.Ps on BOGUS ALLONGES TO NOTES that I can give her copies of to take to her next bankster meeting and shove down their throats. Maybe she would like to subpoena some of these frauds as well..

    I went to the bank today to make a business deposit. When did the FDIC lower the depositors insurance from $250,000.00 to $100,000.00?

    Timothy Geithner said today that he will not stand for a U.S. default on its fake, fraudulently created debt on his watch. Good, tell him to go back to HELL where he came from. Geithner and Bernanke are New World Order Perps and are helping them to destroy America and its National Sovereignty. Screw them.

    • Fury says:

      did you watch the HBO movie, “too big too fail?”
      from what i understand, it tried to make the banksters look human.
      (who were the advertisers? the banks of course!)

      i would have liked to see the geithner character screaming into the phone.

      my friend who watched said that the only one who stood up for homeowners was barney frank.
      she said the the worst was paulsen.

      • l vent says:

        Fury, Yes, I did see the movie. I guess you missed my rant. It did appear they tried to cause sympathy for the devils. Esp. Paulsen. They showed him at one point having to run to the bathroom to vomit. It was obivous the devils were all afraid they wouldn’t be able to save their own asses. The way they tried to paint this as they didn’t think it could have been this bad!!! HA!! At one point in the beginging of the movie they talking about burning houses down!! The CEO of Lehman is really a piece of shit. You should have heard him blaming the homeowners for his demise!!!!! The FBI blew the whistle on the Mortgage Fraud and the Liars Loans to the Bush Adm. in 2004. They told the Bush Adm. they had plenty of time to fix the mess to avert a catastrophic financial collapse. They all need to go to prison. The arrogance of those bank CEO’s. You have to see it to believe it. I read a post here today from somebody who still works in the Mortgage Industry and they said that some “lenders” have lowered their so called “lending” standards already from a 670 credit score to a 620. What more proof do we need, they are still partying on with no accountability for the biggest Ponzi Scheme Swindle and Heist in history and they are still house stealing. Outrageous!!!

  5. indio007 says:

    Attorney General Lisa Madigan better watch out. Nationwide Title Clearing is going to send her threats of civil litigation . That seems to be their standard operating procedure.

    • l vent says:

      Well for as long as this action took to occur, I would hope she has her i’s dotted and her t’s crossed. I don’t think she jumped into this blindly without conducting a very full and thorough investigation. .

    • Fury says:

      i think Nationwide is the scientology firm who threatened lisa e.

      • l vent says:

        I hope they ALL go to prison. I cannot see how one can go down without all of them going down. Fannie and Freddie are the Originators of the whole mortgage fraud Ponzi Scheme and used all of these entities throughout the scam. I view them as the Charles Manson of the whole scheme. They gave the orders to all of these entities and hid behind the scenes of this scam knowing full well they were putting us all on the Mortgage Fraud Titanic. Throughout the entire loan process to the fraudclosure. Fannie and Freddie were actually every entity . Fannie and Freddie are who is fraudclosing using banks, mortgage servicers and their attorney network of Shapiros and the like to steal homes they do not own with yet more fraud. There are not only strict property laws they broke with impunity but securities fraud, crimes prosecutable under the RICO act , they also violated our rights under the U.S. Constitution and the U.S. Bill of Rights. They massacred millions with their weapons of mass financial destruction and they still are. The Fraudclosures must stop and the stolen homes must be returned to the homeowners. They are still deceiving masses of people everyday and stealing homes that are paid for because of their Ponzi Scheme or tricking people into loan mediations or short sales or forebearance aggreements that are more fraud to cover up for all of their other fraud. Everyday there are commercials for fraudclosure auctions and loan modifications. The cover-up of the truth is as massive as the original crime and it is still going on and people are being deceived even more insidiously than in the Ponzi Scheme. Lisa E. pegged them all perfectly. They are Malicious Bankers with Syphillis. . This is a very dangerous, FOREIGN OWNED AND OPERATED, rogue machine who is hell bent on destroying our National Sovereignty and making America a nation of debtors and renters who own nothing but the debt they create to enslave all of us. The American side of this never secured their lien and charged the homeowners a nominal fee for the use of OUR COLLATERAL so they could participate in the PONZI SCHEME SWINDLE AND HEIST AND MAKE HUNDREDS OF TRILLIONS FOR THEMSELVES AND THEIR MASTERS. THIS IS ALL ABOUT GREED AND WORLD DOMINATION BY THE NEW WORLD ORDER. THE FOREIGN OWNED AND OPERATED NEW WORLD ORDER CANNOT OWN OUR HOMES, THAT IS UNCONSTITUTIONAL. The U.S. Government KNOWS THIS IS TRUE. They better put a stop to this foreign intrusion into our Country and the violation and utter disrespect for our STRICT PROPERTY LAWS, our U.S. Constitutional Rights and our U.S. BILL OF RIGHTS. or they are going to have hell to pay for this. The Obama Administration must make a stand for the American People and stop this financial terrorism and robbery, rape and pillage of the American people who are innocent victims of this massive plot to overthrow our U.S. CONSTITUTION and all of our rights and laws that were put in place to protect WE THE PEOPLE from THIS FOREIGN MULTINATIONAL TYRANNY.

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