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Lender Processing Services acknowledges employees allowed to sign for managers on foreclosure paperwork

foreclosure.JPG

(Photo Credit: Justin Sullivan/Getty Images)

Lender Processing Services, the Jacksonville, Fla., company whose subsidiary is the subject of a federal probe for issues related to the preparation of foreclosure documentation, fought back this week against what it said were "mischaracterizations" by the media.

The company said its subsidiary, Docx, stopped executing affidavits in September 2008 and that the documentation was prepared by the lenders or servicers. "These affidavits were then executed by LPS consistent with industry practice," the company said. As for assignments of mortgage, the company said Docx relied on the lenders to input information that was downloaded into a template and then signed. LPS said it only prepared such documents for two lenders/servicers between 2008 and 2009 (but the company failed to mention that these servicers themselves often signed for dozens of mortgage companies.)

The most revealing part of LPS' statement is explaining why some signatures on documents seemed to differ so wildly that it looked like several people signed them. This issue was first reported in The Washington Post on Sept. 23 and referenced again in an article in The New York Times on Oct. 4.

Here's LPS' explanation/admission: "The varying signature styles resulted from a decision made by the manager of Docx to allow an employee to sign an authorized employee's name with his or her express written consent. LPS was unaware of this practice ... [U]pon learning of it, LPS immediately took remedial actions to correct all assignments of mortgage signed in this manner and provided these corrected assignments of mortgage to the two lender/servicer clients or their attorneys."

The company's stock was down nearly 10 percent midday Tuesday.

Here are examples of the varying signatures of Docx employee Linda Green.

By Ariana Eunjung Cha  | October 5, 2010; 12:29 PM ET
Categories:  Housing  
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Comments

Yes we now know that the industry practice is to fabricate documents, generate fraudulent affidavits in order to justify the illegal foreclosures that have been performed on over 7,000,000 American families.

It is not a mischaracterization when their own employees have admitted under oath their crooked business practices, I just hope all those judges that were rubber stamping these foreclosures are now left looking like clowns.

the next step in the process is the accounting of all the money that has gone unreported, undisclosed and that will be the final nail on this illegal pyramid scheme.

They told us we were nuts and judges dismissed tons of cases, in Virginia many federal, BK and state judges ruled against home owners claims, many lawyers were sanctioned for fighting for the truth. Now that we were proven right we are going for the next chapter. These crooks are telling the American people that the affidavits are factually correct, that is another lie.

we are going to prove that the borrowers and the investors were lied to by fabricated documents, misrepresentation, concealment and other "technical " issues.

For every bond sold to the investors for $1,000,000 the only money the filtered down to the closing table was $100,000 for every mortgage transaction, all the fess, and commissions, collateralization, cross collateralization, CDO's, CDS, and other types of exotic insurance and investments and the overselling and payments of undisclosed uninterested parties have paid in full most of these mortgages that have been foreclosed illegally.

Now that we know they have committed fraud and we the borrowers have been proven right, now they the pretender lenders and their corrupt and criminal element associates will have to be compelled to provide a full accounting of all these loans as well as to disclosed who the real creditor is so we as borrower can meet and negotiate each one of our mortgages with the real party and if these too big to fail criminal institutions need to be closed down so be it!

pelucheven@hotmail.com

Posted by: jlsemidey | October 5, 2010 6:37 PM | Report abuse

I would invite everyone to visit

www.livinglies.wordpress.com
www.4closurefraud.org
www.msfraud.org

The truth will set you all free.

Most of these loans are actually unsecured debts and these crooks need to forge and fabricate "EVIDENCE" in order to allow a middlemen who never put money on the table to foreclose.

i just hope the DC and Virginia Judges and Officials react soon enough to stop the madness.

JSemidey

Forensic Mortgage and Securitization Fraud Analyst

Posted by: jlsemidey | October 5, 2010 6:44 PM | Report abuse

LPS sounds to me like a huge criminal enterprise that should be shut down asap!

Posted by: Anonymous | October 6, 2010 2:04 PM | Report abuse

Bad business decision by LPS mgmt. The company may and should replace senior mgmt or fold.

The Feds may help with that decision.

Posted by: Anonymous | October 8, 2010 8:22 AM | Report abuse

Correct me if I got the wrong impression from this article and some of the comments posted. It seems that people are blaming the entire housing/foreclosure crisis on a few companies that might have tried to "speed things up" in front of mounting foreclosure volumes. Had there been a large number of homeowners who were not seriously delinquent on their mortgages and were foreclosed based on forged documents, media would have picked up on this a long time ago.

Posted by: atthemoney | October 12, 2010 4:41 PM | Report abuse

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