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.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
When LPS is involved with attorney foreclosure mills, who pays the law firms fee for the litigation of the foreclosure? LPS or the actual lender?

Does LPS just send the lender a bill stating they hired a law firm at a certain rate or does the lender hire LPS and the law firm and pays them separately?

Just trying to understand how LPS works

Quote 0 0
Moose
Like many business-to-business relationships, some of these are essentially bid on, i.e., a scope of work is written and offered to some number of firms and the one with the lowest bid wins. There are also kickbacks and utterly bogus fee billings to pad the servicer's claims.

Being the lowest bidder often involves being able to do things in large volumes and keeping costs low.

Generally speaking, and again, your mileage may vary, the servicer has a contractual relationship with a firm (i.e., LPS) that will interface with and manage all the local law firms for them.  It would be very inefficient for a servicer to have expertise in-house to deal with every state.

Having said that, "Special Servicers" who literally only deal with default servicing may have any number of direct contacts with a handful of local foreclosure mills. In those cases, they may not use an entity like LPS to aggregate the management of the cases.

It's an economic outsourcing decision.

Hope that helps.

Moose



Quote 0 0
Write a reply...