Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Connecticut Attorney General's Office

Press Release

Attorney General Investigates Selection Process For Law Firms, Marshals Handling Foreclosures

June, 2009

Attorney General Richard Blumenthal, as part of an investigation into the foreclosure business in Connecticut, has requested information from mortgage giants Lender Processing Services, Inc., Freddie Mac and Fannie Mae concerning their process for selecting law firms in foreclosure proceedings.

Blumenthal is investigating reports that a majority of Connecticut foreclosures are assigned to only a few select law firms, and complaints by consumers who said they did not receive proper foreclosure notices from marshals.

In letters to Lender Processing Services, Inc., the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), Blumenthal said he understands that these organizations maintain a network of law firms that perform legal services relating to foreclosure actions.

Blumenthal has requested specific information related to the process in developing these networks and selecting law firms.

"Dominance over foreclosure service by a few select law firms and marshals has spurred complaints about improper or illegal practices -- wrongfully allocating work to non-marshals, forging papers, failing to serve papers, and making kickbacks," Blumenthal said. "Concentrating this work in a few hands can be severely problematic -- causing unconscionable costs and failed notice delivery. These companies -- mortgage lending giants -- have a public trust.

"A scarce few are spinning foreclosures into fortunes -- and perhaps deepening homeowner despair.

"As concentration in the foreclosure business has increased, so have consumer complaints, which have prompted my investigation. My office is investigating to ensure that competition is preserved, and consumers protected."

Blumenthal has requested that Lender Processing Services, Inc., Freddie Mac and Fannie Mae each provide the following information:

  • Identify all law firms in Connecticut who have provided them with legal services relating to foreclosure actions from 2007 to the present;
  • Identify the criteria utilized in selecting law firms to handle foreclosure work;
  • Identify the number of foreclosure actions filed from 2007 to present in Connecticut for which each enterprise has retained counsel;
  • Identify the Connecticut law firms used, and itemize all fees paid to such Connecticut law firms, from 2007 to the present;
  • Identify and itemize all fees paid to Lender Processing Services, Inc., Freddie Mac and Fannie Mae by Connecticut law firms from 2007 to the present;
  • Identify all policies and procedures required of Connecticut law firms to comply with the provision of legal services sought;
  • Identify any complaints received relating to Connecticut consumers who did not receive notice of a foreclosure action or default judgment in a foreclosure action;
  • Identify all lenders to whom default servicing is provided; and
  • Provide copies of all agreements with law firms, including fee schedules.
View the entire letter - (PDF-260KB)
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4 Justice Now
Alina,

Thanks for posting!

This is certainly a step in the right direction and should expanded into include the entire nation. Hopefully, this AG won't be setup and exposed as being a regular john at the local cat house.

R,

4J
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The Equitable One
Alina,

Good find.

I read the letter sent by the AG.

Here is a link to to the press release itself through "Media Newswire"

http://media-newswire.com/release_1092532.html

Here is a link to HomeEquityTheftBlogspot coverage:

http://homeequitytheft.blogspot.com/

Here is a link to the CT AG Press Release on what appears to be the official site:

http://www.ct.gov/ag/cwp/view.asp?Q=441316&A=3673



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and Yet...THIS
Florida Court Selects LPS Case Management Software
By MortgageOrb.com on Friday 26 June 2009
 

The Clerk The Clerk & Comptroller in Palm Beach County, Fla., has selected the ShowCase integrated case management software offered by Lender Processing Services' (LPS) Aptitude Solutions division, the company says.

Used for the court case management, the system will improve the efficiency, productivity and workflow of Palm Beach County courts, while increasing access to court information for the public and other judicial entities, LPS adds.

The Clerk & Comptroller's office, which serves nearly 1.3 million residents in the nation's 29th most populous county, handles more than half-million new cases a year. The ShowCase software includes workflow, calendaring, imaging, indexing and search capabilities, as well as an imaging feature that allows the office to scan and save all documents electronically.

"This project has given us all a great opportunity to work together toward a common goal - implementing a system that will better serve all justice partners and the public," says Chief Judge Kathleen J. Kroll of Florida's 15th Judicial Circuit. "We are committed to continuing this partnership as the project moves forward."

SOURCE: LPS
http://www.mortgageorb.com/e107_plugins/content/content.php?content.3769

So, how much kickback did Clerk & Comptroller receive from LPS ?
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h gosh
This says it all about LPS, who appears to really be Fidelity:

Lee A. Kennedy 
Chairman of the Board of Directors, Lender Processing Services, Inc. 
Lee A. Kennedy 
 

Lee A. Kennedy is the chairman of the board of directors for Lender Processing Services, Inc. (NYSE: LPS), which provides mortgage loan processing, as well as mortgage-related information products and outsourcing services for financial institutions, mortgage lenders and real estate professionals. LPS processes more than 50 percent of all U.S. residential mortgages. Lee assumed the role of LPS’ chairman in March 2009.

Lee is also president and chief executive officer of Fidelity National Information Services, Inc. (NYSE: FIS), named the world's number-one technology provider to the financial services industry in the 2007 Annual FinTech 100 rankings; and listed number 58 on Business Week’s Information Technology 100. FIS is a leading provider of outsourced products and services to clients in more than 80 countries worldwide. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10.

 

Mr. Kennedy joined FIS in February 2006 as a result of the merger between FIS and Certegy Inc. Prior to the merger, Mr. Kennedy was serving Certegy as its chairman and CEO and from July 2001 to February 2002 as its president and CEO. His previous position was president and chief operating officer of Equifax Inc. and prior to that he held the position of president of Equifax Payment Services, in St. Petersburg, Florida. 

 

In 1972, Mr. Kennedy joined Telecredit and since then has served in numerous managerial positions. From 1990 until 1995, Mr. Kennedy was senior vice president and general manager for Equifax Card Services. Prior to that, he served as president of Telecredit Service Center in Tampa from 1981 until 1990. Telecredit, acquired by Equifax in 1990, became Equifax Check Services and Equifax Card Services. In 1995 the two were combined and Mr. Kennedy was named president of Equifax Payment Services, the new operating unit. During his tenure at Equifax Payment Services (formerly Certegy), Mr. Kennedy built a global services business and also helped pioneer card issuing to community banks and credit unions. 

 

Mr. Kennedy earned a Bachelor of Science degree in Business Administration in 1972 from the University of Tampa. He and his wife, Pam, reside in Jacksonville, Florida. They have three children.

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Here's what Jacksonville Consumer Attorney Chip Parker has to say about Fidelity and Lender Processing Services:

The largest default servicer in the country is based in Jacksonville – Fidelity National Default Solutions (now known as LPS Default Title and Closing).  This is essentially a shadow company that makes it’s money through both legitimate and nefarious methods.  It has been known to fabricate loan data, create falsified court documents and charge illegal fees to homeowners.  FNDS hires the foreclosure lawyers on behalf of the securitized trust and does not permit the lawyers to directly communicate with the trust, even though the trust is the actual plaintiff in the case.

http://www.mortgagelawnetwork.com/solving-the-foreclosure-crisis-part-3-%E2%80%93-what-is-the-pooling-and-servicing-agreement/


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