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Lender Processing Services (LPS) under investigation in CA & IL

Subpoenas issued

The attorneys general in California and Illinois have issued subpoenas to Lender Processing Services, Inc. (LPS) which is said to process 50% of all American mortgages and allegedly robosigned foreclosure documents without manual review.

These subpoenas are a major blow to LPS after the FDIC recently filed suit against the company to the tune of $154.5 million.

Probes and strike forces

The Illinois AG has launched a “robosigning probe” and the California AG has launched a new “mortgage fraud strike force,” both of which have taken aim at LPS.

The California AG strike force will be led by investigators and attorneys who are tasked with investigating all steps of the mortgage process from origination to multiple sales of the loan.

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“California homeowners have been exposed to fraud and crime at every step of the mortgage process,” Harris said in a statement. “Justice demands we come to their aid, and a key step in that is to investigate robosigning and the potential for inaccurate or unjust foreclosures.”

What’s next?

Some believe more attorneys general will pursue action against LPS and it remains unseen as to whether or not other governmental agencies besides the FDIC will take action.

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7 Comments

7 Comments

  1. Ruthmarie Hicks

    May 29, 2011 at 11:53 pm

    Long overdue…This is why so many in Congress hate Elizabeth Warren – She is trying to hold banks accountable – OH HORRORS!! Someone who represents the average everyday American.

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