Class action challenges LPS’ grip on foreclosures

Max was featured in this article about LPS by North Carolina Lawyers Weekly.

NewTrak was developed by LPS “to provide foreclosure, bankruptcy and other mortgage loan-related default services to the mortgage industry.” It was the predecessor of LPS’s Desktop.

Together, MSP – another LPS program – and NewTrak manage, “without human interaction, the relationship between HSBC and its attorneys in the collection of delinquent mortgage loans through automated responses to certain queues.”

Gardner said that “LPS tells the attorneys what to do, how soon to do it and how to do it.”

Carbiener rejected that contention. He said Desktop merely “helps servicers and their attorneys track and manage the foreclosure process.”

But Rikard said the pressures LPS exerts on the system led to the “well-publicized” document problems. He said LPS’s oppressive timing mechanisms are designed to get properties foreclosed as fast as possible.

“Robosigners were created because of incredible volume of foreclosures and the pressures on various pieces of the process to get things done quickly,” he said.

Lenders don’t see LPS as the problem. According to Carbiener, it is the solution.