Pot Meet Kettle | American Home Mortgage Servicing, Inc. Files Lawsuit – Seeks Recovery from Lender Processing Services, Inc. and DocX, LLC

Now the real fun begins…

As soon as I get the complaint I will put it up…

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American Home Mortgage Servicing, Inc. Files Lawsuit – Seeks Recovery from Lender Processing Services, Inc. and DocX, LLC

Remediation of Improperly Executed Foreclosure-related Documents Costing AHMSI Millions

COPPELL, Texas, Aug. 23, 2011 /PRNewswire/ — American Home Mortgage Servicing, Inc. (AHMSI) today announced that it has filed a lawsuit against Lender Processing Services, Inc. (LPS) and its affiliate, DocX, LLC (DocX), seeking redress for the millions of dollars in losses that AHMSI has suffered, and continues to suffer, as a result of LPS and DocX’s improper execution, notarization, and recording of assignments of mortgage affecting more than 30,000 residential mortgages across the country.

The lawsuit, filed today in District Court in Dallas County, Texas, follows AHMSI’s unsuccessful attempt to recover its losses during more than a year of discussion among the parties.

The AHMSI lawsuit seeks:

  1. a declaratory judgment that the contract between the parties, as amended, is binding and effective;
  2. an order compelling defendants to arbitrate AHMSI’s claims for breach of contract and indemnification; and
  3. an award of damages relating to non-arbitrable claims sufficient to reimburse AHMSI for the millions of dollars in losses stemming from defendants executing, notarizing, and recording improper assignments on behalf of AHMSI.

DocX prepared, executed and recorded lien releases, assignments of mortgage and related documents for AHMSI from April 2008 through November 2009.  During this time certain DocX and LPS employees were duly appointed by AHMSI’s board of directors as “Special Officers” of AHMSI, with powers limited to executing mortgage-related documents.  However, in late November 2009, LPS informed AHMSI that from March 2009 through October 2009, a substantial number of assignments of mortgage were executed by “surrogate signers,” that is, by individuals who were not designated as Special Officers, but who signed in the name of one or more of the designated Special Officers. At no time did AHMSI sanction or know of the “surrogate signing” practices of LPS and DocX.

Jordan Dorchuck, chief legal officer – AHMSI, said, “Upon learning of this unauthorized use of surrogates, we terminated the services of DocX and promptly conducted an extensive, 50-state remediation effort to address any issues caused by this problem.  Our remediation efforts are, and have been, focused on correcting affected assignments of mortgage to ensure they comply with all local, state and federal laws. This has been a vast undertaking, necessitating coordination with local counsel in each state.”

Based in Coppell, Texas, AHMSI is the 15th largest mortgage servicer in the country, managing nearly $72.5 billion in loan servicing, representing approximately 384,000 customers. Since its inception in April 2008, AHMSI has modified over 175,000 mortgage loans, including over 27,000 under the U.S. government’s Home Affordable Modification Program (HAMP). AHMSI’s more than 3,000 associates work each day with the mission of helping families preserve their dream of home ownership. AHMSI is a privately-held company owned by equity funds managed by WL Ross & Co., a financial management company with over $8 billion in assets under management.

SOURCE American Home Mortgage Servicing, Inc.

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4closureFraud.org

Comments
13 Responses to “Pot Meet Kettle | American Home Mortgage Servicing, Inc. Files Lawsuit – Seeks Recovery from Lender Processing Services, Inc. and DocX, LLC”
  1. John Anderson says:

    Some good information will come from this, through depositions, and filings, but it won’t matter in Florida, as the judges, don’t waste time reading.

  2. Cannibalism continues….

  3. Well my foreclosed on home still sits with a sign that says pending, does that mean I can move back in? Trying to rent my beautiful home to come as close to mortgage payment as possible, hello 2,400, now that those who bought so cheaply along with Fannie & Equity rentals, which require no deposit? mine is priced at 1995 theirs is 1800 and below, too far of a difference for fixed income to accommadate, that is the name of the game, force us into foreclosure, bankruptcy, arrest the few attorneys going after the big banks, I have seen nothing for the homeowner, this is California, can’t believe no one is enforcing anything, so red tape takes that long? only when trying to do the right thing. Please, anyone have a creative idea? thank you in advance.

    • Hell No, No More Bail-OUTS says:

      Judge Mann in San Diego’s BK court “Get’s IT”. If you are in SOUTHERN District BK court, even Pro Se cases are getting a fair shake.

      Don’t just claim that all of CA is a mess, we do have SOME bright spots. Too few, yes. But we need to get more judges to take heed of the 9th District BAP court’s ruling in In Re Vargas. Since that case is the appellate panel of the 9th DISTRICT, even though it is a case from AZ, it applies to ALL the states in the 9th District. Hello, that includes CA. Yes, I realize that any of the ruling that was based on state law would have to be verified for the same law existing in each state in the 9th, but there was enough MEAT to this case that it really may have the teeth you need if BK can work for you.

      • lvent says:

        I was told by an attorney yesterday that Fannie is halting fraudclosures on the unemployed. I would look into this If you have a Fannie loan and this buys you time to fight for your home then use it.

  4. Mad as Hell in Maryland says:

    Can I say BULL_ _ _ _? They knew. Yet we dont see them trying to obtain damages for the Consumers that were ultimately harmed by this all.
    I have been saying for quite a while now, the Banks, and Servicers, and Wall Street, needs to feel the pain felt by Main Street.

    Acknowledgement of wrong doing. Thats what is being said here. Fight the good fight. Question everything, its more than likely fake.
    Good luck to all.

  5. Ray Gavin says:

    AHMSI….my servicer who refuses to communicate with me in any concerning my application for a HAMP.
    I don’t know if they can even prove that they own the property.

    There are two pots to piss in!

  6. lvent says:

    Great picture! Diana Olick was just talking about this on CNBC and the she now calls it the SO-CALLED ROBO-SIGNING SCANDAL which I took it to mean as Diana Olick is finally admitting they are all full of shit. Diana Olick also talked about the improper assignments!!! That is the first time I have ever heard the word assignments mentioned in the mainstream media. It will be interesting to see where the media goes with this!!!

  7. Mario Kenny says:

    The picture in the post tells it all. I hope they all lose every penny they scammed, and I hope they end up below a bridge, hanging upside down, I will pass there just to spit..

  8. Ron Moss says:

    Can MERS assign to IndyMac as nominee?

  9. maggie May says:

    GOLDMAN STOCK GOING DOWN EH BALDIE HIRES FAMED LAWYER?

  10. maggie May says:

    HAAAAAA HAHAHA GOTTA LAFF LOL

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