Did Scott Brown Have Patient Zero of the Foreclosure Fraud/Robosigning Scandal, Lender Processing Services, as a Client?
Established Naked Capitalism readers may have noticed that I’ve avoided commenting on the Elizabeth Warren/Scott Brown race in Massachusetts. That’s largely because this is a finance and economics blog, and aside from the fact that the Warren candidacy has led lots of out of state financial firms to pour money into the Brown campaign, the discussion of issues in that particular race hasn’t entered into terrain that would merit a stand-alone post (and Lambert’s able campaign coverage has chronicled their noteworthy dust-ups). And we criticized her decision to run for the Senate; we’ve said repeatedly that there were better uses for her talents and access to media if she wanted to help ordinary Americans.
But in a new post, Adam Levitin raises an issue that warrants more disclosure from Brown. Admittedly, Levitin is an ally of Warren’s, but that does not invalidate the fact set he raises (And before people who have wandered in from Breibart land try talking up the son of Dijongate faux scandal about Warren not having a Massachusetts law license, please read this debunking).
Brown is a real estate attorney, and his clients included area bank and “mortgage companies,” including Fidelity National. Fidelity National was the parent of Lender Processing Services, which was spun off in 2008. We’ve written at length about LPS’s questionable business model. LPS operates the software platform for over 60% of the servicing in the US. This discussion, from a March 2011 post, will give you a feel for what is not right (plenty) about LPS: