COLORADO ATTORNEY GENERAL ANNOUNCES $1.8M SETTLEMENT WITH LENDER PROCESSING SERVICES OVER FORECLOSURE FRAUD DOCUMENTS

ATTORNEY GENERAL ANNOUNCES $1.8M SETTLEMENT WITH LENDER PROCESSING SERVICES OVER MORTGAGE LOAN SERVICES DOCUMENT PREPARATION

DENVER–Colorado Attorney General John Suthers today announced that the State of Colorado will receive $1.8 million as part of a settlement with Lender Processing Services, Inc. (NYSE: LPS) for past document execution practices by LPS subsidiaries DocX, LLC and LPS Default Solutions, Inc. Florida-based LPS provides technology and other services to mortgage loan servicers.

During a period from January 1, 2008 to December 31, 2010, certain residential mortgage loan servicers authorized specific persons employed by LPS subsidiaries DocX and LPS Default Solutions to sign or assist with the execution of mortgage-related documents, including lost instrument affidavits, deed of trust lien releases, and assignments of deeds of trust. Some of the mortgage -related documents generated or executed by LPS subsidiaries contained defects such as unauthorized signatures and improper notarizations.

“This settlement with LPS is part of our on-going investigation into all facets of the foreclosure process in Colorado,” said Suthers. “It is important that the foreclosure process work as intended and that borrowers and the legal system have confidence in it.”

Between March 1, 2009 and November 1, 2009, employees and agents of DocX were directed by management of DocX to implement a program under which some DocX employees signed mortgage-related documents in the name of other DocX employees, who were or had been at one time authorized to sign on behalf of certain mortgage servicers. DocX referred to these signers as “surrogate signers,” who then executed certain mortgage-related documents in the name of other DocX employees without indicating that the document had been signed by a surrogate signer.

As part of the settlement, LPS and its subsidiaries agree not to engage in any surrogate signing program or execute any mortgage-related documents without an affiant’s review and personal knowledge of the accuracy and completeness of the statements in the documents. LPS and its subsidiaries also will ensure that any mortgage-related document that is executed on behalf of a servicer is done pursuant to proper and verifiable authority to sign on behalf of the servicer.

The settlement funds will be used for programs related to foreclosure prevention, loan modification and housing, to reimburse the Colorado Attorney General’s Office for its attorney fees and costs, and for future consumer protection and antitrust enforcement and education efforts in the state.

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Comments
8 Responses to “COLORADO ATTORNEY GENERAL ANNOUNCES $1.8M SETTLEMENT WITH LENDER PROCESSING SERVICES OVER FORECLOSURE FRAUD DOCUMENTS”
  1. DL Clementson says:

    Colorado has already received over $50 million from the 49 State AG’s Settlement earlier this year and the AG’s Office has been heard to say that none of the money is earmarked for uses other than those benefitting Colorado homeowners….. Would the homeowner(s) who have benefitted from the national settlement please take 2 steps forward, that’s okay I can wait………….

    I am holding documentary evidence (admissble evidence) that BofA is fraudulently manufacturing foreclosure documents such as Assignments of Trust Deeds and Mortgages originating out of the old Countrywide offices in Southern California as part of a criminal conspiracy involving several California Notary Public’. The purpose of which is to steal as many homes as they possible can, sound familiar.

    This is no joke. I have at least 15 Assignments from New York down to Florida and back across the Carolinas, Texas, Colorado, Utah, Arizona and California. All signed by the same person as Asst. Sec. for Mers and Notarized by one or two of the same California Notaries. Problem is none of the signatures match and most don’t match the Journal entries of the Notaries either.

    I have notified AG Harris’ office in California and sent along copies of the important stuff, no response, I contacted the appointed director of the Monitor system put in place by AG Harris to oversee the settlement, she responded but this problem is not in her job description. I informed the AG’s Office in Colorado almost 2 years ago about the nature of the fraud going on, “Sorry, can’t talk about an ongoing investigation.” My ass….

    AG Harris is guilty of harboring an ongoing criminal enterprise operating out of her state that violates state and federal laws, mail fraud, wire fraud, conspiracy to commit the same and on and on. And I’m not even the slightest bit scared to call it like it is: AG Harris, you have already proven that you are not a stupid person so if you continue to ignore the crimes being committed by the TBTF Banks right in your back yard, well, that makes you a part of that criminal activity and a member of the conspiracy for your failure to act. Same goes for our AG Suthers here in Colorado, $1.8 million bucks, don’t make me laugh. Wednesday of this week, tomorrow, there will be something like 45-50 foreclosure sales in just one Colorado County, approx. value of those homes $12,500,000 and guess who’s foreclosing approx. 70% of those???? BofA… that’s one week in one County. Hell, the lawyers are gonna make more than the $1.8 Mill in just a few hours.

    TheGrey

  2. johnrdJOhnR says:

    1st bobbi swann…. Damned right. Not only do we, the victims, end up losing out homes to the 1% elites, we also end up losing to the (whatever) % Govt. Elites too! I will never… ever… ever vote for a pay increase for another Govt. employee at ANY level and I WILL vote against them whenever I get the chance. 2. Alabama John… it doesn’t matter! There were more than enough examples of fraud, forgery and foul play when I took on Wells Fargo starting back in 2008. The Laws were in place, the precedents I found, the Laws I found, I showed them all to the Courts and they summarily took away my house. The Courts don’t care! Pile all the info together you want… The Courts Don’t CARE! THAT’S THE PROBLEM!

    • Alabama John says:

      I guess it is different where you live. The Judge in my case did care.
      To be prepared just in case you get a judge like mine would be wise.

      It seems that wouldn’t of mattered in your case and that is unbelievably sad and wrong.
      I fear for our Country.

  3. bobbi swann says:

    For heaven’s sake people this is NOT for the consumer! With the meltdown of values across the country the coffers of city & state governments are drying up and going in the RED. All these lawsuits and settlements are only a means to fill the gap in their budgets and secure their jobs for the future. Look what is happening at the funds from the Nationwide Settlement? Seen any of that come your way? Oh sure if you are a state or city employee it may mean you have your job for a year or two more, but again the government is only looking out for itself. While these AG’s continually spend taxpayers dollars in legal fess to bring these suits and yet, not a dime goes back into the pockets of the taxpayer. Whose pockets is it going? The government. Tell me just how many citizens have profited from any of these “settlements”? The ponzi scheme still continues…..

  4. Alabama John says:

    Good this is being done to prove the points you would want to make in your own law suit. Every time anyone wins against who you are against helps you at no cost to you.
    Gather all this info you can to help in your individual case.
    Waiting to get a fair settlement for yourself out of a group suit is a waste of time.
    Find a lawyer willing to see all you have gathered and takes your case for part of what he or she can get for you for the hurt you have experienced and the losses you have incurred.
    Don’t sit back waiting, search out that lawyer, do your own foot work, attack, do not be defensive and SHY!.

  5. Hector says:

    Chump change…

  6. MARIO KENNY says:

    and this is news? 1.5 million is the value of 3 normal homes

  7. no names, please says:

    Oh, wow. You can’t even buy a waterfront shack for 1.8 million bucks. What a joke. LPS must be laughing themselves silly over this “settlement.” Gee, maybe someone in the AG’s office is going to get a JOB at LPS….That’d explain everything.

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