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Senate Adds Another Foreclosure Kingpin To Trump’s Cabinet

Senate Adds Another Foreclosure Kingpin To Trump’s Cabinet

Huffington Post-

The first, Steven Mnuchin, Trump’s treasury secretary, invested in and ran OneWest bank, which foreclosed on tens of thousands of Americans in the aftermath of the 2008 financial crisis. During his Senate confirmation hearing, he denied that his bank used the illegal practice of robo-signing, but public documents obtained by The Columbus Dispatch showed that was a false statement.

Ross may not have been the CEO of a bank foreclosing on homeowners, but he was nevertheless intimately involved and invested in two companies that were accused of widespread wrongdoing. American Home Mortgage Servicing was accused of illegal foreclosure practices while it ran the second-biggest portfolio of subprime mortgages in the country.

American Home effectively outsourced the fraud, David Dayen reported, using “a company called DocX, which forged millions of mortgage assignments, claiming to be the officers of dozens of different banks … documents were fraudulently signed after the fact to recreate a chain of title that lenders broke.” The company was eventually sold to Ocwen, which was fined $2.1 billion in 2013 for its unethical business practices. Ross served on Ocwen’s board from 2012 to 2014.

[HUFFINGTONPOST]

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VT AG Reaches $1.25 Million Settlement With Bank Of America Over Foreclosure Settlement Practices

VT AG Reaches $1.25 Million Settlement With Bank Of America Over Foreclosure Settlement Practices

CONTACT: Bill Sorrell, Attorney General, (802) 828-3171

July 10, 2015

Vermont Attorney General William H. Sorrell announced today that Bank of America will pay the State $1.25 million to resolve the State’s claim that the bank failed to honor the terms of settlement agreements it entered into with homeowners in foreclosure actions.

“Homeowners faced with foreclosure need to know that when their bank makes a deal to settle the foreclosure action, the deal will be honored,” said Attorney General Sorrell. “When banks fail to live up to promises they make to Vermont homeowners, there will be consequences.”

Under the settlement, $1 million will be paid to the State, and a $250,000 fund will be created to compensate Vermont homeowners who establish that Bank of America failed to honor the terms of their settlement agreement. Any homeowner who wishes to make a claim against the fund may submit a claim form, together with the required documentation, to the Vermont Attorney General’s Office, no later than September 8, 2015. For example, if after a mortgage foreclosure settlement with Bank of America, a Vermonter received statements from the bank with a payment amount, interest rate or total loan balance that was inconsistent with the settlement agreement, the Vermonter should apply for compensation from the fund. Claims must relate to actions of Bank of America that occurred after April 4, 2012, the date of the National Mortgage Settlement.

Published: Jul 10, 2015

Source: http://ago.vermont.gov

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FORMER LPS EXECUTIVE SENTENCED TO 5 YEARS IN PRISON FOR ROLE IN MORTGAGE-RELATED DOCUMENT FRAUD SCHEME

FORMER LPS EXECUTIVE SENTENCED TO 5 YEARS IN PRISON FOR ROLE IN MORTGAGE-RELATED DOCUMENT FRAUD SCHEME

______________________________________________________________________________
FOR IMMEDIATE RELEASE                               CRM
TUESDAY, JUNE 25, 2013                                         (202) 514-2007
WWW.JUSTICE.GOV                                                    TTY (866) 544-5309
.
FORMER EXECUTIVE AT FLORIDA-BASED LENDER PROCESSING SERVICES
INC. SENTENCED TO FIVE YEARS IN PRISON FOR ROLE IN
MORTGAGE-RELATED DOCUMENT FRAUD SCHEME
 
Over 1 Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations

WASHINGTON – A former executive of Lender Processing Services Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill, and Special Agent in Charge Michelle S. Klimt of the FBI Jacksonville Division.

Lorraine Brown, 56, of Alpharetta, Ga., was sentenced by Senior U.S. District Judge Henry Lee Adams Jr. in the Middle District of Florida. In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000.  On Nov. 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud. 

“Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations,” said Acting Assistant Attorney General Raman.  “The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis.”

“Floridians were hard hit by the downturn in the real estate market,” said U.S. Attorney O’Neill.  “We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis.  Prosecuting financial crimes remains a priority for our office.”

“The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community,” said Special Agent in Charge Klimt.

Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly-owned subsidiary of LPS, until it was closed down in early 2010.  DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes.  Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.

According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices.  Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.

According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit.  Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices.  To further increase profits, DocX also hired temporary workers to act as authorized signers.  These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients.  Some of these temporary workers were able to sign thousands of mortgage-related instruments a day.  Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.        

            After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country.  Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions.  Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.

            This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida.  This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.  

This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

 

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Guilford lawsuit on mortgage ‘robo-signing’ dismissed

Guilford lawsuit on mortgage ‘robo-signing’ dismissed

WOW! I mean come on, after all the fraud that was uncovered in this county alone? Lets recap shall we because this is absolutely mind-boggling?

NC Reg. of Deeds Thigpen Releases Approx. 4,500 DocX Signature Spread Sheet

News-Record-

An N.C. Business Court judge on Wednesday dismissed a lawsuit filed by Guilford County against some of the nation’s largest banks for “robo-signing” mortgages and loan documents.

In the suit filed last year, Register of Deeds Jeff Thigpen said robo-signing let mortgage industry employees sign assumed names to financial documents.

That makes it hard to trace land titles, he said. Banks failed to keep proper paperwork on loans as they were traded and bundled as securities, Thigpen said.

[NEW-Record]

[ipaper docId=144637108 access_key=key-2do3vef2you446z9s8g7 height=600 width=600 /]

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Mortgage Jobs Sent to India By U.S. Banks

Mortgage Jobs Sent to India By U.S. Banks

Note the WSJ article Page B-4 today 5/28/13 and only through a paid subscription online—-“Mortgage Jobs Sent to India By U.S. Banks”  –indeed while this is not exactly new—– If you caught my post trying to get information on Countrywide/Bank of America’s, I explained that “NO PAPER IS BEING SHUFFLED“, and that they could not keep up with the work load of incoming orders.(from my source in 2010). Pay close attention to this picture because this is exactly as it was with the modifications!

 

 

from an emailed tip–

The outsourced services include assembly of all the loan documents needed to foreclose——also all the decision-making documents and analysis to recommend “modifications” –or not to modify.

anybody that ever ran into a credit card issue with Vicram Pandits Citbank unit should be very familiar with how this will work out……….the largest advantage to banks I see is that they will not risk some gumshoe tracking down a Korell Harp at DOCX and getting him to describe how they operate

I do not see how anybody at a bank could testify on the process either—–that the documents were verified etc—–is your original note going to fly to India–that is part of the file that is of critical importance—-how can someone in India assert that the ban in fact has possession of a document thousands of miles away—–so much for DUE PROCESS

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ATTORNEY GENERAL MADIGAN AWARDS $3.3 MILLION TO COUNTY RECORDERS FROM SETTLEMENT WITH “ROBO-SIGNING” FIRM LPS

ATTORNEY GENERAL MADIGAN AWARDS $3.3 MILLION TO COUNTY RECORDERS FROM SETTLEMENT WITH “ROBO-SIGNING” FIRM LPS

Funds Distributed From National Settlement With Lender Processing Services for Faulty Practices Against Homeowners in Foreclosure

Chicago — Attorney General Lisa Madigan today announced the distribution of $3.3 million to Illinois county recorders from the national settlement with Lender Processing Services Inc. (LPS) that resolved allegations that the Jacksonville, Fla.-based firm engaged in pervasive “robo-signing” of mortgage documents and other faulty practices while servicing loans of struggling homeowners at risk of foreclosure.

Madigan and 45 other attorneys general reached the settlement in January following an extensive investigation into LPS and its subsidiaries – LPS Default Solutions and DocX – all of which primarily provide support to banks and mortgage loan servicers. The attorneys general alleged LPS and its subsidiaries engaged in widespread “robo-signing” of mortgage documents, many of which were filed in county recorders offices. The states’ investigation revealed a practice by DocX of so-called “surrogate signing,” or the signing of documents by an unauthorized person in the name of another and notarizing those documents as if they had been signed by the proper person. The settlement requires that LPS reform its business practices, including prohibiting LPS from signing off on mortgage documents with signatures of unauthorized people or people without firsthand knowledge of facts attested to in the documents.

As part of the settlement, LPS paid $3,364,326 to Illinois for cy pres distribution. Madigan said all of the money will be distributed to Illinois’ 102 county recorder offices.

“LPS and its subsidiaries demonstrated an utter disregard for accuracy and fairness in verifying key mortgage documents,” Madigan said. “The settlement holds LPS accountable for its unlawful actions and will provide added resources to Illinois’ county recorders to enhance their efforts in maintaining accurate public records.”

The LPS settlement and subsequent funding distribution is part of Attorney General Madigan’s ongoing effort to address the misconduct that contributed to the financial crisis by holding lenders and other financial institutions accountable for their unlawful practices, while providing relief and assistance to Illinois families struggling to save their homes as a result of the foreclosure crisis.

Madigan took a lead role in the February 2012 national foreclosure settlement, in conjunction with other states and the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, with five of the nation’s largest banks – Bank of America, JPMorgan Chase, Wells Fargo, Citibank and GMAC/Ally – to address allegations of widespread “robo-signing” of foreclosure documents and other fraudulent practices while servicing loans of struggling homeowners. As part of that $25 billion national settlement, Illinois borrowers already have received more than $1.4 billion in direct relief.

-30-

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Dave Krieger: Did MERS Shoot Itself in The Foot? Part 3

Dave Krieger: Did MERS Shoot Itself in The Foot? Part 3

This is Part 3 of a 3-part series on MERS and its attempts to “bat clean-up” (another word for damage control). For more information, and to read the preamble to my response to MERS’s PR campaign, see Parts 1 and 2 of 3 on http://www.cloudedtitles.com.

By Dave Krieger
Managing Member
DK Consultants LLC
(Op-Ed)
March 8, 2013

As long as we’re going to “set the record straight” … one has to understand what is posted on the Williamson County Clerk’s website at http://www.wilco.org:

Texas Property Code Sec. 11.001. PLACE OF RECORDING. (a) To be effectively recorded, an instrument relating to real property must be eligible for recording and must be recorded in the county in which a part of the property is located. However, if such an instrument grants a security interest by a utility as defined in Section 261.001, Business & Commerce Code, the instrument may be recorded as required by Sections 261.004 and 261.006 of that code, and if such instrument is so recorded, the lien and the secured interest created by such instrument shall be deemed perfected for all purposes.

Texas Local Government Code 192.001 General items. The county clerk shall record each deed, mortgage or other instrument that is required or permitted by law to be recorded.

192.007 To release, transfer, assign or take another action relating to an instrument that is filed, registered or recorded in the office of the county clerk, a person must file, register, or record another instrument relating to the action in the same manner as the original instrument was required to be filed, registered or recorded.

I emphasized the last sentence in bold-faced type. It clearly says a person MUST FILE, no exceptions, including MERS-originated mortgages and deeds of trust any document that affects the original recorded instrument (that includes all of these assignments the banks using the MERS business model and electronic database largely ignore … to save money!

bite you in the butt:

• As to the paragraph that talks about the borrower naming MERS as the beneficiary of the deed of trust? I would have to question exactly how many Borrowers really KNEW who MERS was when they went to the closing table because most of the homeowners I’ve talked to said they had no idea who MERS was and the title companies handling the closing sure didn’t explain it to them. It amazes me that if people knew about MERS when they went to the closing table, why is the Williamson County real property records office now packed with concerned homeowners searching through their documents since the audit was released, searching for MERS-related documents?

• In the rebuttal letter, Beckmann tells the Williamson County Commissioners that they heard this testimony on January 22, 2013, when in fact, the Commissioners’ Court heard this testimony on January 29, 2013. What does that say for Beckmann not getting HIS facts straight?

• Again, in the paragraph above the bullet points in the ad MERS ran, it says, by using the MERS system, “the need for certain assignments is eliminated, thereby reducing paperwork and errors and lowering the overall cost of home financing. This role is disclosed and explained to the borrower on the first pages of the deed of trust, which they have signed.” Sure, the borrowers signed the document, but in assuming that the need for all of the assignments that SHOULD HAVE BEEN recorded in the land records is eliminated clearly violates Section 192.007 of the Texas Local Government Code. I also have to reflect back as to “who” explained this to the borrowers at closing. Again, most I’ve talked to have no idea who MERS was or what they represented.

• The so-called “explanations” MERS claims are provided in deeds of trust are seemingly vague and ambiguous, for the purposes of arguing whatever their attorneys want to argue to “stay in the game”. Further, I’d like to know who the “successors and assigns of MERS” are as shown under TRANSFER OF RIGHTS IN THE PROPERTY, because this definition sure as hell isn’t defined under Definition “C” or “E” in the long-form deeds of trust. In fact, those “definitions” don’t even mention who the successors and assigns of MERS are or how they’re involved contractually. That tells me a lot about the deficiencies in MERS’s business model.

• To respond point-for-point on the “bullet points” in this ad:

(1) Disclosing liens to property in any given county does NOT disclose who the intervening assignees are that are transacting business outside of the county land records.

(2) Most of the Texas Clerks had no idea that the definition giving MERS any authority in the land records as a “national book entry system” was enacted; it got past them.

(3) MERS used to foreclose until they were challenged to the point of issuing a Policy Bulletin (2011-5) telling its members that as of July 22, 2011, they were no longer to foreclose in the name of MERS; thus, this statement is in my book, a “half-truth”.

(4) Whether anyone has ever wrongfully lost a home due to MERS is not really the issue here. What is at issue is the robosigning and suspect notary fraud and multiple signature variations the audit uncovered of those suspected of manufacturing documents to effectuate foreclosure.

(5) Cloud on title by using MERS? Instead of owning up to the mistakes being made by its “certifying officers” (who are nothing more than employees of some servicer or third-party document manufacturer like DOCX, whose President is going to prison) and taking responsibility for it, Beckman eludes to the fact that title companies support MERS. I don’t see anywhere in this argument where Schedule B: Exclusions is mentioned in title policies, wherein the title company won’t insure a chain of title if the “defects” aren’t recorded. How convenient is that for MERS? Is Beckmann then drawing a legal conclusion here by saying having MERS as a beneficiary or mortgagee the problem? What about MERS as a nominee? The combination of the two seem to give the MERS “officers”, like the attorneys working at the foreclose mills the impetus to sign whatever they want in the name of MERS and attempt to convey notes into trust pools that MERS doesn’t have the apparent authority to do. And what about those intervening assignees whose interests aren’t recorded in the land records in violation of Section 192.007? I have an idea … why don’t we let the courts (or juries) decide what constitutes a “cloud on title” instead of Beckmann unilaterally drawing his own conclusions?

(6) MERS provides transparency? Really? Even Jeff Thigpen challenged this as mere folly in the PRIA convention in San Antonio where he and Beckmann were panelists. Thigpen got more applause than Beckmann did. Remember, MERS disclaims accuracy on its website because its website is data-inputted by its member-subscribers with no regulatory oversight. This means what’s on the MERS database that shows up in Servicer ID searches is what the members WANT YOU TO SEE, whether it’s accurate or not. The intervening assignees still aren’t there … so I question this “transparency” argument. Horse puckey.

• Beckman then admits that MERS reduces fees paid to county recorders. No wonder the county services are being curtailed. The county recorders rely on the assignments of intervening owners for the revenue they need to keep their services going as their constituents expect. So it would seem that MERS isn’t doing the Texas County Clerks, or any other recorders for that matter, any real favors. But the MERS subscribers (the banks and their servicers) save billions annually.

• By admitting that the possibility exists that MERS could create title issues by NOT insisting that its members MUST RECORD their assignments goes right to the very heart of the argument against MERS for its members violations of Section 192.007 of the Texas Local Government Code.

• Beckmann says the allegations in the audit are unfounded … well … give it time Bill, one of these days, it will be proven just what MERS members did to the land records using the MERS business model, which I still say is flawed and screws the counties out of billions of dollars a year in recording fees. Maybe the foreclosure mill attorneys who supposedly signed all of the documents reviewed in the audit will have to answer to grand juries. They should be nervous, Bill.

• “The key fact is, MERS WORKS.” I’m about to vomit. MERS works for its members. MERS works for Wall Street. MERS didn’t save me any money. MERS will end up costing homeowners money in the long run. MERS didn’t save me any money. I haven’t heard MERS tell any of these so-called Borrowers at closing that if you don’t understand what MERS is, don’t sign this mortgage or deed of trust until you consult an attorney.

Again, a glorified PR stunt with little or no probative value; but lots of seemingly viable admissions to violating Texas Local Government Code. MERS even faxed this article directly to Commissioner Lisa Birkman of Precinct One in Williamson County, which contained Texas case law handy to support MERS arguments. Those cases weren’t included in the advertisement here.

This is why MERS ran this article. The audit hit a nerve. If it didn’t, why respond like this unless you’re trying to do damage control? I hear the attorneys who signed a lot of these Williamson County recorded documents are “nervous”. Again, they should be.

Dave Krieger is the author of the book Clouded Titles and Managing Member of DK Consultants LLC, San Antonio, Texas, whose firm was retained to conduct the Williamson County real property records audit.

[ipaper docId=129298067 access_key=key-i9oizkyjnnml8mkn31o height=600 width=600 /]

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Meet Wall Street’s scapegoat, the one person to get jail time for the most massive mortgage fraud in history

Meet Wall Street’s scapegoat, the one person to get jail time for the most massive mortgage fraud in history

Tidbit: DOCX was established in March of 1993 by its president, Lorraine O. Brown.

DOCX developed two software products; DOCX RID™ (Recorders Information Database) which keeps track of County Recorder fees, and the requirements for recording assignment and satisfaction documents, UCC’s, and to obtain certified true copies of recorded documents. DOCX’s latest software development, DOCX in a BOX™, takes the DOCX RID program significantly further by providing the software to produce the completed and legally-sufficient documents required to process


Salon-

You remember Lynndie England. She was the Army Reserve soldier photographed at the Abu Ghraib prison giving the thumbs-up sign in front of a set of naked detainees. A lower-level reservist, she was among the few at Abu Ghraib who actually served prison time.

No officers who authorized and directed the torture and detainee abuse, either in that prison, at Guantanamo Bay or anywhere around the world, ever faced trial. But Lynndie England became a symbol for the sorry state of the rule of law in America, where a few small “bad apples” get held to account, and the higher-ups who devised and directed the criminal activity get off scot-free.

There’s a Lynndie England for the financial crisis, too.

Meet Lorraine O. Brown, an individual singled out for actual jail time for her role in the massive mortgage document fraud that plagued this nation. Like England, she stands alone among the multitudes of fraudsters, including those at the highest reaches of the financial industry.

[SALON]

image: mugshotsworld.com enhanced by dinsfla

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Lender Processing Services Inc. directors hit with a shareholder derivative suit alleging their failure to go after higher-ups responsible for the “robosigning”

Lender Processing Services Inc. directors hit with a shareholder derivative suit alleging their failure to go after higher-ups responsible for the “robosigning”

This is the way you do it shareholders! If anyone comes across this complaint, please shoot it over. Thx in advance.


Law 360-

Lender Processing Services Inc. directors were hit with a shareholder derivative suit Tuesday alleging their failure to go after higher-ups responsible for the “robosigning” of foreclosure documents and other faulty practices left the mortgage servicer on the hook for hefty legal expenses.

Shareholder Steven Hill claims in a complaint filed in Delaware Chancery Court that while Florida-based LPS has borne the high cost of resolving litigation over the business practices of subsidiaries LPS Default Solutions and DocX, including a recently announced $127 million settlement, the company’s…

[LAW 360]

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Settlement Agreement | Re: Lender Processing Services, Inc. Foreclosure Fraud $35M Settlement

Settlement Agreement | Re: Lender Processing Services, Inc. Foreclosure Fraud $35M Settlement

U.S. Department of Justice
Criminal Division

Washington, D.C. 20530
February 14, 2013

Paul J. McNulty, Esq.
Joan Meyer, Esq.
Baker & McKenzie LLP
815 Connecticut Ave,
NW Washington, DC 20006-4078

Re: Lender Processing Services, Inc.

Dear Mr. McNulty and Ms. Meyer:

On the understandings specified below, the United States Department of Justice, Criminal Division, Fraud Section and the United States Attorney’s Office for the Middle District of Florida (collectively, the “Government”) will not criminally prosecute Lender Processing Services, Inc. and its subsidiaries and affiliates (collectively, “LPS”), for any crimes (except for criminal tax violations, as to which the Government cannot and does not make any agreement) related to the preparation and recordation of mortgage-related documents as described in the attached Appendix A, which is incorporated in this Non-Prosecution Agreement (“Agreement”).

It is understood that LPS admits, accepts, and acknowledges responsibility for the conduct set forth in Appendix A, and agrees not to make any public statement contradicting Appendix A.

The Fraud Section enters into this Agreement based, in part, on its consideration of the following factors:

(a) LPS has made a timely, voluntary, and complete disclosure ofthe facts described in Appendix A.

(b) LPS conducted a thorough internal investigation ofthe misconduct described in Appendix A, reported its findings to the Government, cooperated with the Government’s investigation of this matter, and sought to effectively remediate any problems it discovered.

1. Although LPS’s self-disclosure and cooperation commenced after a whistleblower complaint brought the misconduct to the government’s attention, since the misconduct described in Appendix A was first reported, LPS has taken substantial remedial actions, including:

a. Within approximately six months of discovering the misconduct, LPS wound down all operations of its wholly-owned subsidiary DocX, LLC (“DocX”) in Alpharetta, Georgia, where the primary misconduct described in Appendix A took place.

b. LPS took action to remediate certain of the filings made by DocX from March to October 2009, including re-executing with proper signatures and notarizations, approximately 30,000 mortgage assignments.

c. Within weeks of the disclosure, LPS terminated DocX’s president, Lorraine Brown. Later, after conducting its internal investigation, LPS terminated Ms. Brown’s immediate supervisor at LPS for, among other reasons, failure to supervise Ms. Brown and the DocX operation.

2. The Government received substantial information from LPS, as well as from federal and state regulatory agencies, demonstrating LPS has recently made important and positive changes in its compliance, training, and overall approach to ensuring its adherence to the law.

a. On April 13, 2011, LPS entered into a consent order (the “2011 ” Consent Order”) with the Board of Governors ofthe Federal Reserve System, the Office ofthe Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision (collectively, the “Banking Agencies”). The 2011 Consent Order has a number of conditions with which LPS is required to comply, including:

(i) delineating a methodology for reviewing document execution practices and remediating identified issues;

(ii) establishing an acceptable compliance program and timeline for implementation;

(iii) acceptably enhancing its risk management program;

(iv) acceptably enhancing its internal audit program;

(v) retaining an independent consultant to review and report on LPS’s document execution practices, and assess related operational, compliance, legal, and reputational risks; and (vi) to the extent that the independent consultant identifies any financial harm stemming from the document execution practices to mortgage servicers or borrowers, establish a plan for reimbursing any such financial injury.

To date, LPS has complied with the conditions of the 2011 Consent Order. That work is ongoing and is subject to review and approval by the Banking Agencies.

b. LPS has agreed in a multi-state settlement with a number of state attorneys general (the “Multi-State Resolution”) to undertake additional steps, including assisting homeowners with remediating specific documents as necessary and appropriate.

c. Including this Agreement, LPS has paid to date over $160 million to state and federal authorities related to the DocX conduct.
This recent record is commendable, and partially mitigates the adverse implications of the prior history of misconduct at the DocX subsidiary.

3. The primary misconduct set forth in Appendix A took place at DocX, a subsidiary acquired by an LPS predecessor company in 2005, which constituted less than 1% of LPS’s overall corporate revenue.

4. The Government’s investigation has revealed, as set forth in Appendix A, that Lorraine Brown and others at DocX took various steps to actively conceal the misconduct taking place at DocX from detection, including from LPS senior management and auditors.

This Agreement does not provide any protection against prosecution for any crimes except as set forth above, and applies only to LPS and not to any other entities or to any individuals, including but not limited to employees or officers of LPS. The protections provided to LPS shall not apply to any acquirer or successor entities unless and until such acquirer or successor formally adopts and executes this Agreement.

This Agreement shall have a term of two years from the date of this Agreement, except as specifically provided below. It is understood that for the two-year term of this Agreement, LPS shall: (a) commit no crime whatsoever; (b) truthfully and completely disclose non-privileged information with respect to the activities of LPS, its officers and employees, and others concerning all matters about which the Government inquires of it, which information can be used for any purpose, except as otherwise limited in this Agreement; (c) bring to the Government’s attention all potentially criminal conduct by LPS or any of its employees that relates to violations of U.S. laws (i) concerning fraud or (ii) concerning mortgage or foreclosure document execution services; and (d) bring to the Government’s attention all criminal or regulatory investigations, administrative proceedings or civil actions brought by any governmental authority in the United States against LPS, its subsidiaries, or its employees that alleges fraud or violations of the laws governing mortgage or foreclosure document execution services.

Until the date upon which all investigations and prosecutions arising out of the conduct described in this Agreement are concluded, whether or not they are finished within the two-year term specified in the preceding paragraph, LPS shall, in connection with any investigation or prosecution arising out ofthe conduct described in this Agreement: (a) cooperate fully with the Government, the Federal Bureau of Investigation, and any other law enforcement or government agency designated by the Government; (b) assist the Government in any investigation or prosecution by providing logistical and technical support for any meeting, interview, grand jury proceeding, or any trial or other court proceeding; (c) use its best efforts promptly to secure the attendance and truthful statements or testimony of any officer, agent or employee at any meeting or interview or before the grand jury or at any trial or other court proceeding; and (d) provide the Government, upon request, all non-privileged information, documents, records, or other tangible evidence about which the Government or any designated law enforcement or government agency inquires.

It is understood that, if the Government determines in its sole discretion that LPS has committed any crime subsequent to the date of this Agreement, or that LPS has given false, incomplete, or misleading testimony or information at any time, or that LPS has otherwise violated any provision of this Agreement, LPS shall thereafter be subject to prosecution for any federal violation of which the Government has knowledge, including perjury and obstruction of justice. Any such prosecution that is not time-barred by the applicable statute of limitations on the date ofthe signing of this Agreement may be commenced against LPS, notwithstanding the expiration of the statute of limitations between the signing of this Agreement and the expiration of the term of the Agreement plus one year. Thus, by signing this Agreement, LPS agrees that the statute of limitations with respect to any prosecution based on the facts set forth in Appendix A that is not time-barred on the date that this Agreement is signed shall be tolled for the term of this Agreement plus one year.

It is understood that, if the Government determines in its sole discretion that LPS has committed any crime after signing this Agreement, or that LPS has given false, incomplete, or misleading testimony or information at any time, or that LPS has otherwise violated any provision of this Agreement:

(a) all statements made by LPS or any of its employees to the Government or other designated law enforcement agents, including Appendix A, and any testimony given by LPS or any of its employees before a grand jury or other tribunal, whether prior or subsequent to the signing of this Agreement, and any leads derived from such statements or testimony, shall be admissible in evidence in any criminal proceeding brought against LPS; and (b) LPS shall assert no claim under the United States Constitution, any statute, Rule 410 of the Federal Rules of Evidence, or any other federal rule that such statements or any leads derived therefrom are inadmissible or should be suppressed.

By signing this Agreement, LPS waives all rights in the foregoing respects.

The decision whether any public statement, made prospectively by LPS, contradicts Appendix A and whether it shall be imputed to LPS for the purpose of determining whether LPS has breached this Agreement shall be in the sole discretion ofthe Government. If the Government determines that a public statement contradicts in whole or in part a statement contained in Appendix A, the Government shall so notify LPS, and LPS may avoid a breach of this Agreement by publicly repudiating such statement(s) within five business days after notification. This paragraph is not intended to apply to any statement made by any former LPS officers, directors, or employees. Further, nothing in this paragraph precludes LPS from taking good-faith positions in litigation involving a private party that are not inconsistent with Appendix A. In the event that the Government determines that LPS has breached this Agreement in any other way, the Government agrees to provide LPS with written notice of such breach prior to instituting any prosecution resulting from such breach. LPS shall, within 30 days of receipt of such notice, have the opportunity to respond to the Government in writing to explain the nature and circumstances of such breach, as well as the actions LPS has taken to address and remediate the situation, which explanation the Government shall consider in determining whether to institute a prosecution.

It is understood that LPS agrees to pay a total monetary penalty of $35,000,000. LPS must pay $20 million of this sum to the United States Marshals Service, and $15 million to the United States Treasury, both within ten days of execution of this Agreement. The United States has provided LPS separately with wiring instructions to accomplish these payments.

LPS takes no position as to the disposition ofthe funds after payment and waives any statutory or procedural notice requirements with respect to the United States’ disposition ofthe funds. As a result of LPS’s conduct, including the conduct set forth in Appendix A, LPS agrees that the United States is entitled to forfeit the proceeds of the conduct pursuant to Title 18, United States Code, Section 981(a)(1)(C). Without admitting that LPS and/or its predecessors in interest received $20 million in proceeds, LPS agrees that by executing this Non-Prosecution Agreement it is releasing all claims it may have to the funds, including the right to challenge the civil forfeiture ofthe $20 million payment, as proceeds of such conduct. LPS further agrees to sign any additional documents necessary to complete civil forfeiture of the funds, including but not limited to a consent to forfeiture.

The $35 million total amount paid is final and shall not be refunded should the Government later determine that LPS has breached this Agreement and commence a prosecution against LPS. The Government agrees that in the event of a subsequent breach and prosecution, it will recommend to the Court that $20 million be offset against whatever forfeiture the Court shall impose as part of its judgment and $15 million be offset against whatever fine the Court shall impose as part of its judgment. LPS understands that such a recommendation will not be binding on the Court. LPS agrees that it shall not seek any tax deduction in connection with these payments, and shall not seek to have either ofthe payments applied as a set-off as to any other regulatory fine or other debt owed to the United States as of the date that this Agreement is executed.

It is further understood that, as noted above, LPS has strengthened its compliance and internal controls standards and procedures, and that it will further strengthen them as required by the Banking Agencies and any other regulatory or enforcement agencies that have addressed the misconduct set forth in Appendix A. In addition, in light of active investigations by various regulators ofthe conduct described in Appendix A, and the role that regulators such as those listed above will continue to play in reviewing LPS’s compliance standards, the Government has determined that adequate compliance measures have been and will be established. It is further understood that LPS will report to the Government, upon request, regarding its remediation and implementation of any compliance program and internal controls, policies, and procedures that relate to its mortgage or foreclosure document execution services. Moreover, LPS agrees that it has no objection to any regulatory agencies providing to the Government any information or reports generated by such agencies or LPS regarding this matter. Such information and reports will likely include proprietary, financial, confidential, and competitive business infonnation. Moreover, public disclosure of the information and reports could discourage cooperation, impede pending or potential governmental investigations, and thus undermine the objectives of the reporting requirement. For these reasons, among others, the information and reports and the contents thereof are intended to remain and shall remain non-public, except as otherwise agreed to by the parties in writing, or except to the extent that the Government determines in its sole discretion that disclosure would be in furtherance ofthe Government’s discharge of its duties and responsibilities or is otherwise required by law.

It is further understood that this Agreement does not bind any federal, state, local, or foreign prosecuting authority other than the Government. The Government will, however, bring the cooperation of LPS to the attention of other prosecuting and investigative authorities, if requested by LPS.

It is further understood that LPS and the Government may disclose this Agreement to the public.

With respect to. this matter, from the date of execution of tliis Agreement forward, this Agreement supersedes all prior, if any, understandings, promises and/or conditions between the Government and LPS. No additional promises, agreements, and conditions have been entered
into other than those set forth in this Agreement, and none will be entered into unless in writing and signed by all parties.

Sincerely,

DENIS J. McINERNEY
Chief, Fraud Section
Criminal Division
United States Department of justice

Glenn S. Leon, Assistant Chief
Ryan Rohlfsen, Trial Attorney

ROBERT E. O’NEILL United States Attorney

MarkB. Devereaux / Assistant United States Attorney

 Down Load PDF of This Case

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Posted in STOP FORECLOSURE FRAUD2 Comments

LPS settles Foreclosure Fraud criminal probe with DOJ for $35 Million

LPS settles Foreclosure Fraud criminal probe with DOJ for $35 Million

How long did it take for them to make this cash and what happens to the over 1 MILLION fraudulent documents to homes?

Did anyone bother to check on the assignments created in 2008 for the Bain v Metropolitan case out of Washington executed by Bethany Hood and Christina Allen? If not, this did not involve Lorraine Brown or DocX. Just a hint.

Not to mention the connections of a former attorney, George Anhang from both Covington & Burling and Dewey & LeBoeuf law firms that represented LPS in the defense of a securities class action…which also settled recently.

Reuters-

The mortgage servicing company Lender Processing Services Inc has agreed to pay $35 million to resolve a federal criminal investigation into foreclosure fraud, the U.S. Department of Justice said on Friday.

The settlement resolves allegations over the Jacksonville, Florida-based company’s involvement in what the government called a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage documents in property recorders’ offices nationwide.

It followed a guilty plea last November by Lorraine Brown, the former chief executive of LPS’ DocX LLC unit, to a felony charge of conspiracy to commit mail and wire fraud over the scheme, which ran from 2003 to 2009.

[REUTERS]

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Posted in STOP FORECLOSURE FRAUD10 Comments

REGISTER JOHN O’BRIEN CALLS ON COURT FOR RESTITUTION ON BEHALF OF THE HOMEOWNERS OF ESSEX COUNTY; OFFERS NATIONAL SOLUTION TO PUBLIC LAND RECORDS CRISIS

REGISTER JOHN O’BRIEN CALLS ON COURT FOR RESTITUTION ON BEHALF OF THE HOMEOWNERS OF ESSEX COUNTY; OFFERS NATIONAL SOLUTION TO PUBLIC LAND RECORDS CRISIS

FOR IMMEDIATE RELEASE

Salem, MA

January 15th, 2013

Contact: Kevin Harvey 1st Assistant Register

978-542-1724

kevin.harvey@sec.state.ma.us

 

REGISTER JOHN O’BRIEN CALLS ON COURT FOR RESTITUTION ON BEHALF OF THE HOMEOWNERS OF ESSEX COUNTY; OFFERS NATIONAL SOLUTION TO PUBLIC LAND RECORDS CRISIS

 

On the heels of a guilty plea by DocX founder and president Lorraine Brown, to mail and wire fraud, in the Federal Court in Jacksonville, Florida, Massachusetts Southern Essex County, Register of Deeds John O’Brien has filed an affidavit and a request for restitution on behalf of the citizens of his district. DocX was one of the largest mortgage related document preparers in the country representing a number of the major banks.  

O’Brien said, “The fact that DocX has admitted in Federal Court that they have been recording fraudulent documents in registries across the country only validates what my office and others have been saying all along.   They have recorded over 10,567 mortgage related documents in my registry and the time has come for them to prepare and record valid documents to replace the fraudulent ones.  Not only would this begin to correct the mess that they have made of homeowners’ chains of title, but the additional recording fees for the corrective documents will amount to $792,375 dollars in new revenue for the taxpayers of the Commonwealth.”    O’Brien also said “It is one thing to record a corrected document, but that in its self will not insure a valid chain of title. That is why I have also asked the court for $492,015 dollars in restitution, so that I can seek proposals for a full forensic audit.  This audit will show us just how far this fraud has gone in affecting other documents relating to homeowners’ chains of title.  I suspect that we will find the validity of those documents to also be corrupted.  Of the 10,567 fraudulent documents, the overwhelming majority are documents that have been recorded on properties that are not in foreclosure.  My concern is that this may affect the property owners’ ability to refinance, convey or obtain title insurance.  Responsible lenders and title insurers rely on the integrity and accuracy of the land records recorded in registries and obviously these 10,567 cannot be relied upon.   I view this entire sad episode as no different from an oil spill, where the perpetrators are held criminally and civilly responsible to pay for the cleanup.

O’Brien is the first Register of Deeds in the country to seek restitution and this could have wide spread ramifications for other document preparers and the major banks that retained them. “The big banks cut corners and this has caused a national scandal, destroying the integrity of the land recordation system.  Those lenders and document preparers trampled on peoples’ property rights by recording forged and fraudulent documents and that is not acceptable to me,” said O’Brien.  “My proposal could be a national model for other registers across the country to implement in order to bring back the integrity of their land records.”

If successful, O’Brien intends to hold other preparers and banks that participated in this scheme responsible. Attorney Sarah McKee, a former General Counsel Interpol U.S. National Central Bureau in Washington D.C. prepared the affidavit for O’Brien at no cost to the taxpayers. “Had it not been for Attorney McKee’s assistance and her commitment to the integrity of our land recordation system and peoples’ property rights, I could never have taken this action. I am grateful, as I am sure the people of the Southern Essex District are, for her courage in taking this action on their behalf.   Attorney McKee said, “Robo-signed, that is, forged mortgage documents corrupt the land records in registries of deeds nationwide.  They now cloud the titles of millions of unsuspecting Americans’ homes.  Register of Deeds John L. O’Brien’s request that guilty “robo-sign” executive Lorraine Brown pay restitution for corrupting homeowners’ title records is thus historic.  It is a first in the nation.”

O’Brien also praised certified fraud examiner Marie McDonnell of McDonnell Property Analytics, Inc. for the work that she has done to bring this issue to the public’s attention and educate him and his staff on just how this scheme has dramatically impacted property owners’ chains of title.  Ms. McDonnell said “John O’Brien was the first Register of Deeds in the country to have a forensic examination of a Registry of Deeds. He did so because he was troubled by the fact that he could no longer look his constituents in the eye and tell them truthfully who owned their property.” Despite his awareness, Register O’Brien was shocked by the results of my audit, and when he finished reading my report he declared publicly:  “My registry is a crime scene.”

O’Brien feels strongly that this bold action for restitution is a reasonable and sound approach to bring an end to this national scandal once and for all. O’Brien said the duties of a register of deeds are to maintain and promote the integrity, transparency, accuracy and consistency of the registries land records.  “All I am doing, is the job, that the people of Essex County elected me to do … no more and no less. I am trying to do everything I can to hold these banks and their document preparers accountable for what they have done. Hopefully, the Federal Court in Jacksonville, Florida will agree with me.”

O’Brien has contacted Massachusetts United States Senators John Kerry and Elizabeth Warren, Congressman John Tierney, United States Attorney General Carmen Ortiz, Governor Duval Patrick, Attorney General Martha Coakley, Secretary of State William Galvin and State Treasurer Steven Grossman asking that they file an affidavit in support of his actions.

 Marie McDonnell Affidavit

John O’Brien Affidavit

DocX Plea Agreement

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Posted in STOP FORECLOSURE FRAUD1 Comment

Cynthia Kouril: Why isn’t this a front page story nationwide?

Cynthia Kouril: Why isn’t this a front page story nationwide?

FDL-

On November 20th 2012 I told you about a guilty plea taken by Lorraine Brown, the founder of DOCX (later known at LPS), in federal court in Florida. The press release for that plea did not come out until after 5 PM on the Tuesday before Thanksgiving. On the Wednesday before Thanksgiving most of the reporters who usually occupy the front pages of our newspapers and network news were presumably traveling or preparing for their holiday. The story was barely reported.

Lorraine Brown also pled guilty earlier that same day in state court in Missouri. She is rumored to be in plea negotiations in other states.

Even though this is no longer breaking news, it still belongs on the front page of every paper in the country and should be the lead story on every newscast. I’ll tell you why: […]

[FIRE DOG LAKE]

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Posted in STOP FORECLOSURE FRAUD2 Comments

Former Executive at Florida-Based Lender Processing Services Inc. Admits Role in Mortgage-Related Document Fraud Scheme – Over 1 Million False Docs

Former Executive at Florida-Based Lender Processing Services Inc. Admits Role in Mortgage-Related Document Fraud Scheme – Over 1 Million False Docs

Over One Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations

U.S. Department of Justice November 20, 201
  • Office of Public Affairs (202) 514-2007/TDD (202) 514-1888

WASHINGTON—A former executive of Lender Processing Services Inc. (LPS)—a publicly traded company based in Jacksonville, Florida—pleaded guilty today, admitting her participation in a six-year scheme to prepare and file more than one million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.

The guilty plea of Lorraine Brown, 56, of Alpharetta, Georgia, was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Middle District of Florida Robert E. O’Neill; and Michael Steinbach, Special Agent in Charge of the FBI’s Jacksonville Field Office.

The plea, to conspiracy to commit mail and wire fraud, was entered before U.S. Magistrate Judge Monte C. Richardson in Jacksonville federal court. Brown faces a maximum potential penalty of five years in prison and a $250,000 fine or twice the gross gain or loss from the crime. The date for sentencing has not yet been set.

“Lorraine Brown participated in a scheme to fabricate mortgage-related documents at the height of the financial crisis,” said Assistant Attorney General Breuer. “She was responsible for more than a million fraudulent documents entering the system, directing company employees to forge and falsify documents relied on by property recorders, title insurers, and others. Appropriately, she now faces the prospect of prison time.”

“Homeownership is a huge step for American citizens,” said U.S. Attorney O’Neill. “The process itself is often intimidating and lengthy. Consumers rely heavily on the integrity and due diligence of those serving as representatives throughout this process to secure their investments. When the integrity of this process is compromised, illegally, public confidence is eroded. We must work to assure the public that their investments are sound, worthy, and protected.”

Special Agent in Charge Steinbach stated, “Our country is increasingly faced with more pervasive and sophisticated fraud schemes that have the potential to disrupt entire markets and the economy as a whole. The FBI, with our partners, is committed to addressing these schemes. As these schemes continue to evolve and become more sophisticated, so too will we.”

Brown was the chief executive of DocX LLC, which was involved in the preparation and recordation of mortgage-related documents throughout the country since the 1990s. DocX was acquired by an LPS predecessor company and was part of LPS’s business when LPS was formed as a stand-alone company in 2008. At that time, DocX was rebranded as “LPS Document Solutions, a Division of LPS.” Brown was the president and senior managing director of LPS Document Solutions, which constituted DocX’s operations.

DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes. Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices. Only specific personnel at DocX were authorized by the clients to sign the documents.

According to plea documents filed today, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices. Unbeknownst to the clients, Brown directed the authorized signers to allow other DocX employees, who were not authorized signers, to sign the mortgage-related documents and have them notarized as if actually executed by the authorized DocX employee.

Also according to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit. Specifically, DocX was able to create, execute, and file larger volumes of documents using these signing and notarization practices. To further increase profits, DocX also hired temporary workers to sign as authorized signers. These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients. Some of these temporary workers were able to sign thousands of mortgage-related instruments a day. Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.

After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country. Many of these documents—particularly mortgage assignments, lost note affidavits, and lost assignment affidavits—were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown admitted she understood that property recorders, courts, title insurers, and homeowners relied upon the documents as genuine.

Brown also admitted that she and others also took various steps to conceal their actions from clients, LPS corporate headquarters, law enforcement authorities, and others. These actions included testing new employees to ensure they could mimic signatures, lying to LPS internal audit personnel during reviews of the operation in 2009, making false exculpatory statements after being confronted by LPS corporate officials about the acts, and lying to the FBI during its investigation. LPS closed DocX in early 2010.

This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. This case is being investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.

Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Source: http://www.fbi.gov/jacksonville/press-releases/2012/former-executive-at-florida-based-lender-processing-services-inc.-admits-role-in-mortgage-related-document-fraud-scheme

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

COLORADO 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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Posted in STOP FORECLOSURE FRAUD1 Comment

Lender Processing Services Announces Settlement With Delaware Attorney General

Lender Processing Services Announces Settlement With Delaware Attorney General

JACKSONVILLE, Fla., Oct. 16, 2012 /PRNewswire/ — Lender Processing Services, Inc. (LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, today announced that its subsidiary DocX, LLC has reached a settlement with the Delaware Attorney General, that concludes the State’s investigation of the document execution practices by DocX.

(Logo: http://photos.prnewswire.com/prnh/20120802/FL50731LOGO )

The terms of the settlement provide for, among other things, a payment of $150,000 to the State of Delaware in lieu of penalties, reimbursement of $100,000 to the Delaware Attorney General’s Office for its fees and costs of investigation, and a release of potential liability of LPS and DocX related to document execution practices in Delaware.

“This settlement is another important step in our continuing efforts to resolve legal and regulatory issues related to the operations of DocX, which we closed in 2010,” said Hugh Harris, president and chief executive officer of LPS. “LPS remains focused on resolving all remaining legal and regulatory challenges as expeditiously as possible, and is committed to ensuring that we continue to operate with integrity and compliance in everything we do.”

[http://finance.yahoo.com/news/lender-processing-services-announces-settlement-210100186.html]

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GUILFORD COUNTY, ex rel. JEFF L. THIGPEN | Lawsuit on Robosigning (LPS) Goes to NC Business Court

GUILFORD COUNTY, ex rel. JEFF L. THIGPEN | Lawsuit on Robosigning (LPS) Goes to NC Business Court

October 15, 2012 

For Immediate Release:

GUILFORD COUNTY, ex rel. JEFF L. THIGPEN, GUILFORD COUNTY REGISTER OF DEEDS vs.  LPS, et al. motions to dismiss complaint will be heard in NC Business Court, Tuesday, October 16th in Raleigh, NC.

Guilford County, ex rel. Jeff L. Thigpen, Guilford County Register of Deeds vs. LPS, et. al motions to dismiss complaint will be heard in NC Business Court, Tuesday, October 16th in Raleigh NC at 225 Hillsborough Street Suite 303. 

The suit was filed by County Attorney Mark Payne and Deputy Attorney Matt Turcola on behalf of Guilford County, ex rel. Jeff L. Thigpen, in March 2012 against LPS/DocX, MERSCORP, MERS, Inc., and numerous banks, loan servicers, and foreclosure specialists.   The County is seeking that the defendants clean up the “mess” they created in the County’s property records registry.

Guilford County is located in central North Carolina. Its population is approximately 500,000. Greensboro is the largest city within Guilford County. Guilford County was established in 1771, the same year it began its Registry of Deeds.

To assist with the suit, Guilford County retained Talcott Franklin P.C., the nation’s preeminent securitization litigation law firm.

                        ###

source: Jeff Thigpen

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Adam Levitin: Did Scott Brown Facilitate Predatory Loans? Connections to Foreclosue Fraud

Adam Levitin: Did Scott Brown Facilitate Predatory Loans? Connections to Foreclosue Fraud

Credit Slips-

There’s no question that we at the Slips take a particular interest in the Massachusetts Senate race. But usually we don’t have much to say about it. Still, something Scott Brown said today struck me as rather significant–much more so than a lot of the things that have been covered in the media about the Senate race. 

It turns out that Senator Scott Brown (R-Mass.) is a real estate attorney among other things. (Beats modeling, I guess.) Brown apparently did real estate closings and title work.  His clients included local banks as well as some “mortgage companies,” including some that are no longer in business, as well as Fidelity National and First American, two large real estate services companies that provide a range of services, including relating to foreclosure.  Fidelity National, is also the former parent of LPS, which owned DocX, the document forgery firm featured on 60 Minutes and home of the Robosign. LPS is under a consent order with the Federal Reserve Board for its servicing activities, and DocX was criminally indicted by Missouri (and subsequently settled). Brown was doing work for Fidelity National when it still owned LPS.

[CREDIT SLIPS]

image: NPR.org

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CITY OF ST. CLAIR SHORES GENERAL EMPLOYEES’ RETIREMENT SYSTEM vs LENDER PROCESSING SERVICES, INC., et al.,

CITY OF ST. CLAIR SHORES GENERAL EMPLOYEES’ RETIREMENT SYSTEM vs LENDER PROCESSING SERVICES, INC., et al.,

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
JACKSONVILLE DIVISION

CITY OF ST. CLAIR SHORES GENERAL
EMPLOYEES’ RETIREMENT SYSTEM,
Individually and on Behalf of All Others
Similarly Situated,

Plaintiff,

vs.

LENDER PROCESSING SERVICES,
INC., et al.,

Defendants.

SECOND AMENDED CLASS
ACTION COMPLAINT AND
DEMAND FOR JURY TRIAL

EXCERPT:

6. The economic downturn, marked by record foreclosure rates, together with
LPS’ improper business model, resulted in a tremendous volume of default work for the
Company to process. LPS – determined to process this work as quickly as possible to drive
market share and profits – employed various illicit practices at its offices (including its
headquarters in Jacksonville, Florida and other offices throughout the United States). Much
of the Company’s illicit activity was conducted through its subsidiaries DocX, LLC
(“DocX”), based in Alpharetta, Georgia, and LPS Default Solutions, Inc. (“LPS Default
Solutions”), based in Jacksonville, Florida and Mendota Heights, Minnesota.

7. These illicit practices were pervasive throughout the Company during the
Class Period and included the fabrication of documents, “robo-signing,” the forging of
documents, improper notarization, violation of security protocols, and the concealment of
known mistakes from courts, attorneys, and clients. For instance, through DocX, the
Company engaged in the wholesale fabrication of mortgage assignments, which were filed
with county clerk offices and used as evidence by LPS’ clients in foreclosure proceedings to
evict homeowners. Moreover, to increase the speed at which it processed mortgage-related
documents, LPS required its employees to engage in “robo-signing” and “surrogate signing.”
“Robo-signing” involved LPS employees signing mortgage-related documents at record
speeds without verifying their accuracy. “Surrogate-signing” or forging, as it was internally
known, involved LPS employees forging the names of various bank officials on these same
mortgage documents. These problematic documents were then improperly notarized by LPS
employees who wholly ignored notarization protocols by failing to verify the signatories’
identities.

[…]

[ipaper docId=104834872 access_key=key-1vle7jan83dei22eravp height=600 width=600 /]

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Better Know a Bundler: Romney’s Personal Predatory Lender

Better Know a Bundler: Romney’s Personal Predatory Lender

HuffPO-

Meanwhile, one of only two of Romney’s lobbyist-bundlers to reach the ‘Stars’ level is T. Martin Fiorentino Jr., of the Fiorentino Group. By May, he had raised over $325,000 for Romney.

One of Fiorentino’s most notorious clients is Lender Processing Services, a foreclosure mill that, as Matt Viser of the Boston Globe noted, was reprimanded in April for “unsound practices related to residential mortgage loan serving and foreclosure processing.” Viser went on:

[A]s he [Romney] has built his fund-raising machine, he has relied heavily on a man who has lobbied Congress on mortgage reform and anti-predatory lending legislation that contained strict rules aimed at preventing another subprime mortgage collapse.Fiorentino’s Jacksonville, Fla.-based firm, the Fiorentino Group, has been paid $180,000 by Lender Processing Services since late 2009, according to lobbying disclosure forms. The firm lobbied the House and Senate on the Mortgage Reform and Anti-Predatory Lending Act.

The legislation…came in response to the subprime mortgage crisis and was meant to prevent lenders from making loans that borrowers would have difficulty repaying. It was approved by the House in May 2009, but wasn’t taken up that year by the Senate.

Much of the legislation ended up being included last year in the Dodd-Frank Act, a larger overhaul of national financial regulations.

Lender Processing Services is one of the country’s largest mortgage service providers, claiming to handle more than half of all foreclosures and providing services for more than 1,000 financial institutions. The company came under scrutiny after admitting last year that one of its subsidiaries, DocX, had been improperly preparing some of the foreclosure documents.

DocX was ground zero in the massive “robosigning” fraud. Its founder and former president was indicted in Georgia on 136 fraud counts earlier this year, and is under indictment in other states as well. The robosigning scandal led to a call for investigations by all 50 state attorneys general; this is turn led to the National Mortgage Settlement agreement.

[HUFFINGTON POST]

© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Thousands of Ohio homeowners were foreclosed on improperly, lawsuit claims

Thousands of Ohio homeowners were foreclosed on improperly, lawsuit claims

The defendants are Lender Processing Services of Jacksonville, Fla.; LPS Default Solutions of Jacksonville; DocX LLC of Jacksonville; Fidelity National Information Services of Jacksonville; American Home Mortgage Servicing of Coppell, Texas; and three Cleveland law firms: Lerner, Sampson & Rothfuss; Reimer, Arnovitz, Chernek & Jeffrey Co.; and Manley Deas Kochalski LLC.

Cleveland-

Eight mortgage-related businesses are accused of falsifying documents to improperly foreclose on thousands of homeowners in Ohio.

The suit alleges that the mortgage service companies altered paperwork to make it appear they had authority to file foreclosures in the proper time frame. A Cleveland law firm, Kaufman & Co., joined five other local and national law firms to file the suit on behalf of seven Ohio homeowners.

The suit, filed in Cuyahoga Common Pleas Court, seeks class-action status, meaning thousands of homeowners in similar situations could benefit.

[CLEVELAND]

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Lender Processing Services to Pay $2 Million Over Robo-Signing

Lender Processing Services to Pay $2 Million Over Robo-Signing

Business Week-

Lender Processing Services Inc. (LPS) (LPS) agreed to pay Missouri $2 million to resolve a case against its DocX LLC over so-called robo-signing of mortgage-related documents.

A Columbia, Missouri, grand jury in February handed down a 136-count indictment against Docx and founder Lorraine Brown alleging that a person whose name appears on 68 notarized deeds of release didn’t actually sign those papers, Missouri Attorney General Chris Koster said then.

“Under the agreement, LPS will pay the state of Missouri $2 million and will cooperate with the Attorney General’s Office in its continuing criminal investigation” of Brown, Koster said in an e-mailed statement today.

[BUSINESS WEEK]

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