Fraud Digest | HSBC Foreclosures and the Newtrak System of Lender Processing Services

HSBC Foreclosures and the Newtrak System of Lender Processing Services

By Lynn E. Szymoniak, Esq., Ed. Fraud Digest, August 26, 2011

On August 24, 2011, Circuit Judge Fuentes of the United States Third Circuit Court of Appeals, issued an opinion in a case appealing the reversal by the District Court of sanctions originally imposed in the bankruptcy court on attorneys Mark J. Urden and Lorraine Doyle, the Udren Law Firm, and HSBC for violations of Federal Rule of Bankruptcy Procedure 9011. Highlights from that opinion, particularly regarding Lender Processing Services and HSBC, are set forth below. In this decision, the Third Circuit reversed the District Court and affirmed the bankruptcy court’s imposition of sanctions with respect to Lorraine Doyle, the Udren Law Firm, and HSBC. The District Court’s decision reversing the bankruptcy court’s sanctions against attorney Mark Udren was affirmed. The appeal was taken by Acting United States Trustee Roberta A. DeAngelis, In re Nile C. Taylor, et al., Case No. 10- 2154, 3d Cir. 2011. Ultimately, the Taylors lost their home. The sanctions imposed by the Bankruptcy Court, reversed by the District Court and finally affirmed by the Circuit Court, were minimal. Doyle was ordered to take 3 CLE credits in professional responsibility; Udren himself to be trained in the use of NewTrak and to spend a day observing his employees handling NewTrak; and both Doyle and Udren to conduct a training session for the firm’s relevant lawyers in the requirements of Rule 9011 and procedures for escalating inquiries on NewTrak. The court also required HSBC to send a copy of its opinion to all the law firms it uses in bankruptcy proceedings, along with a letter explaining that direct contact with HSBC concerning matters relating to HSBC’s case was permissible.

Full report below…

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4closureFraud.org

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HSBC Foreclosures and the Newtrak System of Lender Processing Services

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Comments
2 Responses to “Fraud Digest | HSBC Foreclosures and the Newtrak System of Lender Processing Services”
  1. Beth A. says:

    HSBC has ours…or at least think they do. They probably can’t prove it. They are trustee. Servicer attempted first foreclosure (duh). From what I’ve read – I think HSBC has some huge issues as they didn’t perform their trustee duties via their PSAs (oops, you know, like custody the proof of debt on these securitized mortgages or file proper assignments). I would venture to guess that in a very, very large percentage of cases, they’ve been making stuff up (getting fake documents drafted) as they go along.

  2. Lynn I have e-mailed you four more copies of fraud robo signers and notaries on the same docs. Totally dif signatures for both the robos and the notaries. Absolute fraud. Please look for them Keep up the GREAT! WORK. WE NEED YOU.

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