Reuters published a must read article today, Special report: Legal woes mount for a foreclosure kingpin, in which they describe how a Reuters investigation shows that LPS’s legal woes are more serious than their CEO, Jeff Carbiener, let on.
Public records reveal that the company’s LPS Default Solutions unit produced documents of dubious authenticity in far larger quantities than it has disclosed, and over a much longer timespan.
Naked Capitalism weighs in on the revelations brought forth in that article with the blog post, Lender Processing Services Produced More Bogus Foreclosure Documents Than It ‘Fessed To.
Note the Reuters story confirms, with almost all of the details reported here, the practices we discussed in a post more than two months ago: how LPS pushed the foreclosure mills in its network to foreclose on a very strict timetable, by threatening to terminate the large flow of foreclosure litigation it directed to them if they did not perform as specified.
The story also indicates that DocX, the LPS subsidiary that not only engaged in robo signing (one perp is the now notorious Linda Greene) and filing of other questionable documents continued to operate far longer than LPS had earlier claimed (LPS maintains that the bad practices had ceased, but given its continued strained relationship with the truth, I’m not certain I’d take these denials at face value).
The article suggests that the some of questionable activities extended beyond DocX, which raises the possibility that, just as robo signing was moved into network foreclosure mill firms, other improper practices may simply have been shifted elsewhere in LPS or to its law firm arms and legs …
Max’s comment on the issue — The day the LPS Music Died.