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Feb
27

LPS Alerts SEC that trouble is brewing – Fraudulent Assignments Class Action

By | Corporate Greed & Corruption, Court Cases, Featured

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Lender Processing Services (LPS), a spinoff company from FIS (Fidelity National Information Services), who also happens to traffic in creating mortgage assignments out of thin air for the largest financial institutions and foreclosure fraud mills, has just put the SEC on alert in it latest 10K Filing that they cannot accurately assess the economic impact of a class action lawsuit it has been named as a Defendant in. The class action was filed last week in federal court in the Southern District of Florida. Click Here to read the complaint.

The radar screen of foreclosure fraud is starting to really light up with bogies… otherwise known as “bogus” mortgage assignments and un-authenticated affidavits. I think the bottom line is that Americans are just plain fed up with the fraud and trickery being perpetrated upon our communities, our country and its citizens by corporate America, as well as the executive and judicial branches of this country. Enough is enough is what I hear every day and I predict a meltdown of the corporate foreclosure machine very soon lest a total revolution breaks out in this country by the “astroturf” tea baggers and the like.

Click here to read the actual LPS 10K Filing but here’s the interesting excerpt…

Item 3 – Legal Proceedings

Litigation
 
In the ordinary course of business, we are involved in various pending and threatened litigation matters related to our operations, some of which include claims for punitive or exemplary damages. Often, these matters do not include a specific statement as to the dollar amount of damages demanded. Instead, they include a demand in an amount to be proved at trial. For these reasons, it is often not possible to make a meaningful estimate of the amount or range of loss that could result from these matters. Accordingly, we review matters on an ongoing basis and follow the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 450, Contingencies, when making accrual and disclosure decisions. When assessing reasonably possible and probable outcomes, we base our decision on our assessment of the ultimate outcome following all appeals. We intend to vigorously defend all litigation matters that are brought against us, and we do not believe that the ultimate disposition of any of these lawsuits will have a material adverse impact on our financial position or results of operations. Finally, we believe that no actions, other than the matter listed below, depart from customary litigation incidental to our business.
 
Schneider, Kenneth, et al. vs. Lender Processing Services, Inc., et al.
 
On February 17, 2010 this putative class action complaint was filed in the United States District Court for the Southern District of Florida. In a single count complaint, the plaintiffs seek to recover unspecified damages for alleged violations of the Fair Debt Collection Practices Act relating to the preparation and use of assignments of mortgage in foreclosure actions. The defendants include two large banks, as well as LPS and our document solutions subsidiary. The complaint essentially alleges that the industry practice of creating assignments of mortgages after the actual date on which a loan was transferred from one beneficial owner to another is unlawful. The complaint also challenges the authority of individuals employed by our document solutions subsidiary to execute such assignments as officers of various banks and mortgage companies. Although we do not believe that our conduct falls under the provisions of the Fair Debt Collection Practices Act, at this early stage we are unable to accurately predict the outcome of this matter.
 
Regulatory Matters
 
Due to the heavily regulated nature of the mortgage industry, from time to time we receive inquiries and requests for information from various state and federal regulatory agencies, including state insurance departments, attorneys general and other agencies, about various matters relating to our business. These inquiries take various forms, including informal or formal requests, reviews, investigations and subpoenas. We attempt to cooperate with all such inquiries. Recently, during an internal review of the business processes used by our document solutions subsidiary, we identified a business process that caused an error in the notarization of certain documents, some of which were used in foreclosure proceedings in various jurisdictions around the country. The services performed by this subsidiary were offered to a limited number of customers, were unrelated to our core default management services and were immaterial to our financial results. We immediately corrected the business process and began to take remedial actions necessary to cure the defect in an effort to minimize the impact of the error. We subsequently received an inquiry relating to this matter from the Clerk of Court of Fulton County, Georgia, which is the regulatory body responsible for licensing the notaries used by our document solutions subsidiary. In response, we met with the Clerk of Court, along with members of her staff, and reported on our identification of the error and the status of the corrective actions that were underway. We have since completed our remediation efforts with respect to the affected documents. Most recently, we have learned that the U.S. Attorney’s office for the Middle District of Florida is reviewing the business processes of this subsidiary. We have expressed our willingness to fully cooperate with the U.S. Attorney. We continue to believe that we have taken necessary remedial action with respect to this matter.

Game on folks… keep putting the pressure on every pressure point you can find in this corrupt system. Sooner or later, the knees of this system will buckle.

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