Barry Ritholtz | Does Lender Processing Services (LPS) Deserve the Corporate Death Penalty?

“The end game for this is fairly obvious: Find the fuckers who authorized this, prosecute and convict them, and throw their sorry asses in jail.”


Does Lender Processing Services Deserve the Corporate Death Penalty?

Today, we have what appears to be a parallel fraud: The processing of foreclosure documents by legal services giant Lender Processing Services. Thanks to the diligent worh of Attorneys General in states such as Nevada, New York, Delaware, California (but not Florida), we are starting to learn the extent of what took place under the auspices of LPS:

• former L.P.S. employee who worked in “attorney management,” overseeing firms that performed legal work for foreclosures, told Nevada investigators that L.P.S. required him to resolve issues raised by the firms at a rate of 30 foreclosure files every hour (2 minutes per)

• Former workers described their work as “surrogate signers.” Their job was to forge signatures on documents.

• Other employees were hired through temp agencies, paid $11 an hour and told that her job was “to sign somebody else’s signature on documents,” the lawsuit said. Investigators were informed she signed roughly 2,000 documents a day for months — well over 100,000 foreclosure docs.

• Notarization was similarly dishonest, with workers notarizing documents (as a Notary) that they had fraudulently signed as a surrogate.

• Borrowers were confronted with documents containing “false assertions about which entity was authorized to foreclose, and false assertions about whether the consumer was delinquent on a loan payment.”

Check out the report in full here…


10 Responses to “Barry Ritholtz | Does Lender Processing Services (LPS) Deserve the Corporate Death Penalty?”
  1. lies is all they tell says:

    carlos alot of us were told not to pay our mortgages, doesnt this null and void a contract. it any other legal area if you break a contract you are liable but if the person you have a contract with tells you to break that contract it should do the same thing make them liable which equals the contract becomes null and void. i do not understand why lawyers are not jumping all over this

    • lvent says:

      Lies…their contract has been null since they committed the ORIGINATION FRAUD….!!!!!

      • lvent says:

        The servicers couldn’t create a debt out of thin air….fraudulently induce another loan…make them prove they own your loan….they can’t! !!!!

      • lvent says:

        the servicers duties are limited…..notice when you called to check the status of your loan mod you were calling loss mitigation…? That means you are in fraudclosure…there were no loan mods….for those who had no legal lien on their deed…fraudclosure is a scam…

  2. abs says:

    two thumbs up. make it public ill bring the popcorn. Remember one of the marine general said ( if a person died due to stress from foreclosure it is homocide) dont forget the millions displaced.

  3. Ron Moss says:

    Absolutly plus punitive damage appropriately.

  4. lvent says:

    The NEW WORLD ORDER could have never accomplished any of it without the help of many traitors from within….namely the politicians….!!! Just like 9/11…..this was an inside job……the American people are still believing too many lies…..!!!! Like obama signing NDAA and saying but, I wont use it…,!!! WTF!!!!!!

  5. Carlos Dehesa says:

    I think the bank fraud has been oversimplifying, when in reality it is something that was planned in a scientific manner by the best brains of the best universities, they created a maze to commit the perfect crime and until now they are winning.
    Through academic work they created hundreds of investment instruments: subprime loans, derivatives, CD’s etc.. And while all types of loans were made to appear like home mortgages to increase the amounts of the pools of investors, to do all this they had to sell the houses (on paper) many times and thus increase the collateral. All this means that most homes are already paid, although it has been done illegally. That’s why banks lost the promissory note and cannot follow the chain of securitization. A friend of mine received a bill to collect a student loan like a mortgage.
    On the other hand, bankers using the mortgage loans as investment houses made trillions of dollars that should be shared with homeowners because in some way acted as a partnership associated with homeowners.
    That’s the reason the banks can not show the security chain, and then discover how much money is actually earned and how often they sold the houses, which would result in the accumulation of more crimes because it is more likely that these gains were not reported to the Internal Revenue Service.
    As you can see is not as simple as saying that Joe Smith has not paid his monthly payment.
    The point is whether the contract that was signed with the bank or whoever is still in effect.
    We must also investigate whether the contract was used to commit crimes and how many states or countries was necessary to cross to commit such crimes.
    Analyze whether the contract was broken by one or both parties.
    There are great possibilities that the contract does not exist any longer, despite you owe your loan it is automatically unsecured.
    Hopefully my comments will serve someone

    • lvent says:

      Carlos this was another Hitler plan…..they used the best and brightest minds to carry this out…this was ne ver about the monetary gain for the NEW WORLD ORDER….they use money as a lure for their perps……they are a accomplishing stealing our homes because it is lucrative for the perps……the luciferians who are hiding behind the scenes of this plan have no souls……I agree with you about finding the fraud…it is up to all of us to find the fraud and fight it…

  6. Ken Hansen says:

    Yes. Excellent Mr Ritholtz!

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