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Executive faces jail time for role in robo-signing scandal

After charges were filed against a former DocX executive this spring, the nation has awaited the final result as an indicator of what will happen to other executives involved in the robo-signing scandal.

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DocX executive’s plea bargain includes jail time

According to the U.S. Department of Justice, over one million documents were signed and notarized from DocX and filed with property recorders across the nation between 2003 and 2009, resulting in $60 million in gross revenue during that period, and workers knowingly forged signatures on the documents through a now controversial process called robo-signing wherein more signatures meant more documents filed and more money earned.

Lender Processing Services (LPS) said they fired Lorraine Brown, a former executive at their subsidiary, DocX, when they discovered she had concealed the massive robo-signature scandal, and criminal charges were filed against her by Missouri Attorney General (AG) Chris Koster earlier this year.

A plea agreement has now been reached between Brown and the AG, under which, Brown will plead guilty to one felony count of forgery, one felony count of perjury, and one misdemeanor count of making a false declaration, which carries a term of less than two years imprisonment, not to exceed three years.

DocX’s practices “were the worst in the country.”

“DocX’s robo-signing practices were the worst in the county. Surrogate-signing crosses the threshold into criminal activity,” AG Koster said in a statement. “This agreement brings to justice the person most responsible for these activities and upholds the principle that when you sign your name to a legal document, it matters.”

Lender Processing Services spokesperson Michelle Kersch said in a statement that they have remediated all documents and cooperated with all government investigations. “LPS is committed to ensuring that all employees operate with integrity and compliance in everything they do on behalf of the company.”

Other charges to come to other individuals?

This plea agreement brings to light personal responsibility and justice that many American homeowners, mortgage lending institutions, and attorneys general across the nation have been calling for since the robo-signing scandal broke, given that one of the biggest players in the drama is now looking at jail time.

Could other dominoes fall next? Various counties have sued other entities for their role in forging documents as well as for sending homes into foreclosure without human review, but is jail time likely for anyone else, or is Brown’s plea bargain and jail time the only one to be had?

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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1 Comment

1 Comment

  1. Bill Matsushima

    November 23, 2012 at 7:40 pm

    I simply hope this incident is not a tip of an iceberg.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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