Two lawsuits filed against Lender Processing Services (LPS), one of the nation’s largest default servicers, will move forward. In an October press conference, LPS had expressed confidence that its practices were within the industry standard and dismissed the cases, which allege that LPS improperly split fees with foreclosure attorneys, as a “fishing expedition”.
However, those cases–pressed forward by Boot Camp graduates Nick Wooten and D.W. Grimsley, Jr.–are now moving into discovery.
Read more about the cases and the history of LPS at Naked Capitalism, which noted:
The common remedy for illegal fee sharing is disgorgement. Remember the magnitude of this business: it accounts for nearly half of LPS’s revenues. LPS is a pretty levered operation, with a debt to equity ratio of over 3:1. It isn’t hard to see that success in either of these cases would be a fatal blow to LPS.