Lender Processing Services acknowledges employees allowed to sign for managers on foreclosure paperwork
(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.
Ariana Eunjung Cha
| October 5, 2010; 12:29 PM ET
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