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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DOJ Probing Mortgage Data Processing Firms

By Peg Brickley
Of DOW JONES DAILY BANKRUPTCY REVIEW

The Department of Justice is conducting a nationwide probe of the company whose automated systems handle half the mortgages in the U.S., looking for evidence Lender Processing Services Inc. (LPS) has “improperly directed” the actions of lawyers in bankruptcy court.

The Jacksonville, Fla., company was spun out last year from Fidelity National Information Services Inc. (FIS), a financial technology giant that is also under scrutiny for its role in court actions, according to documents filed with the U.S. Bankruptcy Court in Philadelphia.

Although the companies say they are providers of electronic information services, the U.S. trustee believes LPS and Fidelity play a “much greater” role in court actions where thousands of homes are at risk of foreclosure, according to Bankruptcy Judge Diane Weiss Sigmund.

“The thoughtless mechanical employment of computer-driven models and communications to inexpensively traverse the path to foreclosure offends the integrity of our American bankruptcy system,” Sigmund wrote in a decision released Wednesday, April 15.

A spokeswoman for Fidelity did not respond to requests seeking comment on the investigation by the Office of the U.S. Trustee, an arm of the Department of Justice whose mission includes safeguarding the integrity of the bankruptcy courts.

Michelle Kersch, a spokeswoman for LPS, said the U.S. trustee has “advised outside counsel for LPS that it is seeking to better understand LPS’ role.” In an e-mail, Kersch pointed out that the judge held the lawyers, not LPS, responsible for the problems in the case before her.

The probe of the mortgage technology operation surfaced in a Philadelphia case after Sigmund started asking questions about the source of false court filings that came from HSBC Mortgage Corp. In pursuit of homeowners Niles and Angela Taylor, HSBC filed the wrong mortgage, gave incorrect payment amounts and claimed the Taylors had missed monthly payments. This “was simply not true,” Sigmund wrote in a 58-page decision.

Pressed to produce a loan history for the Taylors, HSBC’s lawyer confessed the system simply wouldn’t give it to him.

HSBC, it turns out, had handed off servicing of the troubled loan to Fidelity, which spun out LPS last year. The processes the company uses to crank out court documents for fast, cheap foreclosures were the culprit, the judge found.

By forcing lawyers to talk to computers rather than to their clients – the lenders – LPS makes it hard for lawyers to do right by the court and discharge their ethical obligations, Sigmund said.

Lawyers at one level spot-check a fraction of the documents that are on their way to foreclosure actions, Sigmund found. But the business is built for profitability rather than reliability, and counts on “lower-cost labor,” according to the judge.

Although LPS’s system “has many features that make a volume business process more efficient, the users may not abandon their responsibility for fairness and accuracy to the seduction of electronic communication,” Sigmund wrote.

She faulted HSBC and some of the lawyers involved in the case for having “sacrificed accuracy and fairness to efficiency and cost-savings,” by relying on LPS’s systems.

Fidelity, later LPS, is the electronic powerhouse behind the foreclosures rolling through much of the country, taking in data and spitting out loan-default notices for 16 of the 20 largest mortgage-loan servicers in the nation. Banks like HSBC and mortgage servicers outsource the handling of their troubled loans to LPS’s default management services business.

Business is booming in the loan default unit, LPS’s financial reports say, with revenue up 68.3% for the fourth quarter of 2008, compared with the same period a year earlier.

Consumer advocates have long complained that Fidelity and LPS are much more than electronic data providers. The companies say which lawyers get the lucrative business of foreclosing on troubled homeowners. Those who move the fastest are rewarded, said O. Max Gardner III, a consumer bankruptcy attorney. Those who pause to ask questions or to investigate whether a loan should be foreclosed, don’t last as LPS network attorneys, Gardner said.

“The Fidelity-LPS system represents a complete outsourcing of the foreclosure and bankruptcy process to a third-party, Fidelity-LPS, who then manages the entire legal process,” Gardner said in an e-mail Thursday, April 16.

Sigmund’s opinion revealed that the Department of Justice is looking at Fidelity, LPS and the law firm that handles HSBC Mortgage Corp.’s troubled loan business nationwide, Moss Codilis LLP.

Moss Codilis did not reply to an e-mail seeking comment on the investigation, which involves a number of bankruptcy cases, according to Philadelphia court documents.

(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)

-By Peg Brickley, Dow Jones Daily Bankruptcy Review; 302-521-2266; peg.brickley@dowjones.com

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May the heavens rain down on their little parade.

This does indeed make me smile.

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4 Justice Now
Ann,

I'll second that!

And hopefully, some day very soon Ocwen will lose their coat of Teflon as well, but for obvious health reasons I won't holding my breath.


R,
4J
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PB
Dear Department of Justice - your on the right track, God Bless you for doing the right thing.
 
If you want more, very specific, information contact me. pmap63@yahoo.com
 
PB

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DOJ
In case anyone wishes to contact DOJ directly:
           http://www.usdoj.gov/contact-us.html

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I called and talked with Peg...Then I emailed her.  She seemed pretty nice. Some of these reporters are like most of the politicans just lip service. She at least seemed cordial. Can only PRAY we might get some help!

Be Blessed,

Kathy
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LPS's Carbiener says company isn't under investigation

"There is no nationwide investigation of LPS by the Department of Justice," Carbiener said in his first public comments on the matter.

 

"As far as we are concerned, this matter is concluded," Carbiener said.

 

LINK TO FULL STORY

 

So........ Whats the truth?

 

Tom #2

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Then I sure hope my case hopes change his song and dance of Bullshi*. That they know their producing fraud. Then the judge is obliging in carrying out the scheme. I've got proof of one of their attys doing just what he says their not! Then I have a judge letting them get by with this. The trustee did as well. But I also know from speaking to my own atty after his disuasion by the bk judge that the judge must be pretty intimidating or else people wouldn't FEAR STANDING UP TO HIM AS I HAVE.

But I have the PROOF on myside...Even if they try to lie somemore I have paycheck stubbs and registers of the accts I collected on. I bet I can even pin point which was a chase accoount and which was a Citi account..

Outside of this crap with this their all in! Or else I wouldn't have two judges recuse. When a judge recuses its because there's two sides to each story.And what their telling the judge vs what I'm telling them is making them all try to hide.. I can only hope they lose their retirement or their right to an income as well.
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LFALH

I really hope they start investigating all of these data processing firms. Many of them have run crazy and are turning out fake/fraudulent documents.

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LPS
LENDER PROCESSING SERVICES INC WI Reports Operating Results (10-Q)
Approximately fifty percent of all U.S. mortgages are serviced using LPS' Mortgage Servicing Package. . .
Historically, some of our default management businesses have had lower margins than our loan facilitation businesses. However, as our default volumes have increased, our margins have improved significantly on the incremental sales during the first quarter of 2008 and 2009. Because we are often not paid for our default services until completion of the foreclosure, default does not contribute as quickly to our cash flow from operations as it does to our revenues. Our trade receivables balance increased by approximately $30.5 million from December 31, 2007 to March 31, 2008 and approximately $25.9 million from December 31, 2008 to March 31, 2009, largely due to the increase in our default business.
Read the The complete Report

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O -

PB wrote:
Dear Department of Justice - your on the right track, God Bless you for doing the right thing.
 
If you want more, very specific, information contact me. pmap63@yahoo.com
 
PB

 Who was it that help take them down? PB?

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I would tread very lightly if I were you PB.  Giving false information to a governmental entity is a crime.  Slander is actionable in civil court.  Tread lightly...

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Insinuating that someone is giving false information can be considered giving false information on your own part without proof. And since PB has offered nothing specific, who are you to warn them about giving false information?

Just curious...
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PB and I have a bit of history you may not want to get in the middle of.  It truly was a friendly reminder. 

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4 Justice Now
MPC,

If the U.S. Government, with its unmatched law enforcement resources and muscle, isn't interested in seeking justice or finding the truth regarding the absolute largest and most blatant crime in history why would they bother spending any time attempting to prosecute a very unlikely case of slander?

Actually, that's something I'd almost expect to see happen, based on the B.S. that has been going on during the past ten plus years.

BTW: I seriously doubt anyone here is at all interested in hearing about your "History".

4J
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Now now, Who said I wanted in the middle Of anything? Last thing I need is another defendant to keep traCk of.

I was merely asKing a question about youR warning someone about what they said. I doubt thAt your and Pb's history predates the first amendment.

ThEse message boards are Meant for people to share thoughts, ideas, theOries, and proof to help each other out. It would seriously Hinder the purpose of the board to make such warnings. What's the purpose? To intimidate pEople so they don't participate? That's not Likely to happen so it seems to be a waste of tIme. Many people here are searching for help and or trying to help. We're not easily intimidated or we wouldn't Be here. What are you going to dO, call us names? Scramble our letters to make them mean something bad when you read theM in reverse?

Oooooooooo.....skeery! Now that's some funny $!%^ right there

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MPC
Tom:

    Maybe you should ask PB how scary things can be.......
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4 Justice Now
MPC,

Perhaps, you should learn to read and then go F yourself.


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Really 4J, you want me to focus on you now? OK.
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4 Justice Now
MPC,

While, I do appreciate your kind offer, I happen to be quite happily married, therefore, I have to say: Thanks, but no thanks!

4J
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I know you think you are clever 4J, but it would have been better to not have me focus on you. No more posts here. But you have my attention now. That is not a good thing...for you.
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4 Justice Now
MPC,

While, I'd really much rather not spend so much as even a single moment further trying to diagnose any one of your many quite strange behavior traits and/or maladies. Not to mention, your abhorrent obsession for being melodramatic in a most extreme fashion.

That said. I do feel compelled to ask: Is this a trait that you have honed for a very long number of years, or was it simply ingrained in response to watching so many of your fellow psychotics leave confinement. Actually, I would suggest that you now attempt to focus totally on some very in-depth level of mental therapy, and ignore all else.

Now don't be upset but this will be the very last time that I going to take the time to address these issues with you. You must grow up and learn to be happy with yourself.

I wish you the best of luck.


4J
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Sara
MPC,

Isn't it funny how everytime PB makes a post, here you come right behind him.  Are you stalking PB or do you have some secret puppydog crush?  You know, other people do notice this and stalking is a crime.

S
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PB
MPC is attorney Michael Cash out of Houston, TX. He represents LPS and Fidelity National Information Services, Inc., Litton Loan. He has represented Enron and such in the past.

My documents in possession, former employees who have contacted me and my current lawsuits are not good for MPC or his clients. He knows this.

Thank you all here for your support.

PB
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You're welcome PB, and thanks for the information. I knew he was a Clown, and the proof is in the Circus he has worked for. It's not right to try to intimidate people into silence and I think most of us here are not willing to let that happen.

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4 Justice Now
PB,

Thank-you! for the information. I thought he was simply a used car salesman moonlighting as shill for the MS fraudsters. Maybe we should suggest to the bar that they focus on his antics.

BTW: I certainly wish you the best of luck regarding your adjudication.

V/r,

4J 
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Not Smart
MPC wrote:
I know you think you are clever 4J, but it would have been better to not have me focus on you. No more posts here. But you have my attention now. That is not a good thing...for you.


Is this a threat? I can't believe a "Super Lawyer" would be making a statement like that on a public forum.
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BillyTheKidder

Not Smart wrote:
MPC wrote:
I know you think you are clever 4J, but it would have been better to not have me focus on you. No more posts here. But you have my attention now. That is not a good thing...for you.


Is this a threat? I can't believe a "Super Lawyer" would be making a statement like that on a public forum.

Are you Kidding? Lawyers Hover over this for like Vaulters. Ask Nick  , 
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Sara
Well, like my momma used to say:

"If you can dish it out, you better be able to take it!"

We do not allow bullying in our schools so why should we allow it in our legal system? 

S
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