Reuters: LPS & DOCX GOING DOWN LIKE MERS: Grand Jury Indictment Probable

Special report: Legal woes mount for a foreclosure kingpin

LPS Headed For Closure?

“But a Reuters investigation shows that LPS’s legal woes are more serious than he let on. Public records reveal that the company’s LPS Default Solutions unit produced documents of dubious authenticity in far larger quantities than it has disclosed, and over a much longer timespan.”

2:10pm EST
By Scot J. Paltrow
JACKSONVILLE, Florida (Reuters) – Lender Processing Services is riding the waves of foreclosures sweeping the United States, but in late October its CEO, Jeff Carbiener, found himself needing to reassure investors in the $2.8 billion company.

Although profits were rolling in, LPS’s stock had taken a hit in the wake of revelations that mortgage companies across the country had filed fraudulent documents in foreclosures cases. Earlier in the year, the company, which handles more than half of the nation’s foreclosures, had disclosed that it was under federal criminal investigation and admitted that employees at a small subsidiary had falsely signed foreclosure documents.
Still, Carbiener told the Wall Street analysts in an October 29 conference call that LPS’s legal concerns were overblown, and the stock has jumped 13 percent since its close the day before the call.

But a Reuters investigation shows that LPS’s legal woes are more serious than he let on. Public records reveal that the company’s LPS Default Solutions unit produced documents of dubious authenticity in far larger quantities than it has disclosed, and over a much longer timespan.

Questionable signing and notarization practices weren’t limited to its subsidiary, called DocX, but occurred in at least one of LPS’s own offices, mortgage assignments filed in county recorders’ offices show. And rather than halt such practices after the federal investigation got underway, the company shifted the signing to firms with which it has close business ties. LPS provided personnel to work in the new signing operations, according to information from an LPS spokeswoman and court records including an October 21 ruling by a judge in Brooklyn, New York. Records in county recorders’ offices, and in the judge’s opinion, show that “robosigning” and preparation of apparently false documents went on at these sites on a large scale.

In one instance, it helped set up a massive signing operation at the nearby office of a major client, a spokeswoman for the client, American Home Mortgage Servicing, confirmed. LPS-hired notaries who worked there said in interviews that troves of documents were improperly handled. They said that about 200 affidavits per day were robosigned during the two months the two notaries remained there.
A spokeswoman for LPS confirmed to Reuters that it had helped other firms establish operations that performed the same function. LPS spokeswoman Michelle Kersch didn’t specify which firms. But beginning early in 2010, county recorders’ records show, signing shifted also to law firms under contract with LPS.
Interviews with key players and court records also show that pending investigations and lawsuits pose a bigger threat to the company than Carbiener let on.
The criminal investigation in Jacksonville by federal prosecutors and the Federal Bureau of Investigation is intensifying. The same goes for a separate inquiry by the Florida attorney general’s office. Individuals with direct knowledge of the federal inquiry said that prosecutors have impaneled a grand jury, begun calling witnesses and subpoenaed records from LPS.
The company confirmed to Reuters that it has hired Paul McNulty, former deputy U.S. attorney general in the George W. Bush administration, to represent it in the investigation. A spokeswoman for the U.S. Attorney’s office declined to comment on the probe.

The U.S. Comptroller of the Currency’s office, which is responsible for supervising national banks, also announced in November that it had teamed up with the Federal Reserve to conduct an on-site examination of LPS.

Meanwhile, the threats from four class action lawsuits filed in federal courts appear to be greater than the company has indicated, especially one filed in Mississippi. In a highly unusual move, a unit of the U.S. Justice Department has joined that suit as a plaintiff. The lawsuit alleges that LPS extracted many millions of dollars in kickbacks from law firms through an illegal fee-sharing arrangement, in exchange for doling out lucrative foreclosure work to them.
The lawsuit also charges that LPS illegally practices law and routinely misleads homeowners and federal bankruptcy judges. Carbiener has said there is little reason to worry about the Mississippi suit because the company already prevailed in a federal lawsuit in Texas that had made nearly identical accusations. But court records in that case show that the lawsuit was dropped without any ruling on the merits of the allegations.

without anyone at the firms checking the information in them.
Under LPS’s system, law firms that were slower, often because their lawyers carefully prepared and reviewed court documents before filing them, were effectively punished, according to deposition testimony and other sources. The computer automatically assigned bad ratings to these firms, and the flow of work assignments to them dried up.

A BOOMING BUSINESS

Few firms benefited more from the collapse of the U.S. housing boom than LPS. Spun off as an independent company in 2008, the company has seen its profits, with big help from its mortgage default services business, reach $232 million for the first nine months of 2010. That is a nearly 15 percent increase from the same period in 2009. Its revenue last year was $2.4 billion, up from $1.8 billion in 2008.
And business continues to surge. Carbiener told analysts on the October 29 call that “we continue to gain market share across all key business segments.” In a November 23 report prepared for investors and clients, LPS said banks are pushing to foreclose on properties as rapidly as possible, driving “the foreclosure inventory rate to all-time highs.” It said that at the end of October, the number of properties going into foreclosure is “7.4 times historical averages and rising.”
The banks’ push to evict homeowners faster and in bigger numbers than ever before makes LPS’s services even more crucial to them. LPS’s success is built on its advanced, super-automated system that is highly efficient, low-cost, and speeds foreclosures through to completion. The “LPS Desktop” starts foreclosure actions, assigns work to law firms and supervises the cases to conclusion with almost no intervention by humans. (LPS says foreclosure actions are started by its clients, the loan servicers. But copies of agreements with servicers obtained by Reuters show that LPS has direct access to the banks’ and other servicers’ computer systems, and LPS detects defaults and initiates foreclosures based on parameters given to it by the banks.)
Few loan servicers could resist handing over key tasks to the company. Today, LPS boasts a client list that includes 14 of the 15 biggest loan servicers, with household names such as Wells Fargo and JPMorgan Chase — its two biggest clients, according to LPS’s most recent 10K filing with the Securities and Exchange Commission. The company has said that Bank of America joined as a client earlier this year. LPS says that all 50 of the nation’s largest banks use at least some of its services.
In essence, LPS is a giant electronic butler for the big banks and other companies in the industry. It attends to routine tasks the loan servicers prefer not to do themselves. These include tracking mortgage payments, calculating amounts owed to investors who purchased bundles of mortgages, ensuring that property taxes and insurance get paid — and automatically filing foreclosure actions when homeowners go into default.
The pending investigations and lawsuits, however, are focusing on whether LPS, in its zeal to serve its clients, broke the rules, in part by replacing missing bank documents with fictitious ones to make foreclosure cases go through.
SIGNATURE TROUBLE
The first sign of legal problems for LPS emerged earlier this year, when the company disclosed that federal prosecutors in Florida had opened a criminal investigation into apparently forged signatures on foreclosure documents prepared by DocX, the shuttered subsidiary located in a small office park in Alpharetta, Georgia.
Fidelity National Financial, LPS’s former parent, had bought DocX in 2005. The unit soon became a high-speed mill, churning out mortgage assignments — many of which are now known to be of doubtful validity — on behalf of banks and investor trusts, helping them to foreclose on homeowners.
Mortgage assignments are documents transferring ownership, usually from the original lenders to trusts owned by investors who bought securitized packages of mortgages. Loan servicers typically file foreclosure actions on behalf of the trusts when any of their mortgages go into default. But cases popping up all over the country show that the original lenders never handed over ownership of mortgages to the trusts. Assignments establishing ownership of a mortgage are required as evidence in foreclosure cases.
DocX turned out tens of thousands of newly-minted mortgage assignments, purporting to show transfers of ownership long after the mortgages should have been handed over to the trusts, according to the standard provisions in trust agreements.
Thousands of these bore the signature of DocX employee Linda Green. The signatures didn’t look alike, however, and LPS eventually confirmed that multiple DocX employees had signed her name. Some of the assignments stood out because they listed the new owner of the mortgages as “bogus assignee” or “bad bene.”
LPS spokeswoman Michelle Kersch said “bogus assignee” and “bad bene” were simply standard placeholders on document templates which the employees inadvertently had neglected to fill in with the proper names.
In his October 29 conference call with analysts, Carbiener said that when the company discovered the DocX wrongdoing in December 2009, it immediately stopped it and soon shut DocX down. But it turns out that DocX continued operating much longer than LPS originally had acknowledged. In a written response last week to questions from Reuters, LPS’s Kersch confirmed that DocX actually wasn’t closed until August 2010. She said: “The last document signed by DocX was on May 14, 2010.” But she said no improper signing had occurred there since 2009.
DUBIOUS DOCUMENTS Hundreds of public records examined by Reuters show that production of suspect mortgage assignments was not limited to DocX.
The records indicate that employees in one of LPS’s own offices, in Mendota Heights, Minnesota, signed and notarized large numbers of documents which for multiple reasons appear invalid. Records filed with county recorders’ offices show that the Minnesota office continued to turn out these documents at least through the end of January 2010.
Dozens of assignments were signed by LPS Minnesota office employees who listed themselves as corporate officers of banks and other loan servicers, a sampling of public records from counties in five states shows. As at DocX, the assignments were signed years after the mortgages should have been transferred to the investment trusts.
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The signature of one of these LPS employees, Liquenda Allotey, appears on thousands of mortgage assignments. Homeowners’ lawyers and at least one judge — federal bankruptcy judge Joel B. Rosenthal in Massachusetts — have noted that Allotey’s signature is a simple zigzag line, raising questions about whether other individuals may have signed his name. Titles listed below the signature identify him variously as “vice president” or “attorney in fact” for at least 13 banks and mortgage companies.
LPS spokeswoman Kersch said Allotey signed all of the documents himself, and said all mortgage assignments prepared in the Minnesota office “were executed under a lawful grant of authority.” She didn’t spell out, however, how such authority was given.
In any event, two other aspects of many mortgage assignments signed by Minnesota employees raise strong doubts about the documents’ legitimacy.
State laws, backed up by court decisions, require that mortgage investment trusts and others filing to foreclose on houses possess a valid mortgage assignment at the time they file for foreclosure. If it doesn’t, the laws require that the case be dismissed.
An examination of county recorders’ records turned up dozens of mortgage assignments signed and notarized by the Minnesota office weeks or months after a foreclosure case had been filed. Records show that even though invalid, the belated mortgage assignments often enabled foreclosure cases to sail through.
April Charney, an attorney who represents homeowners at Jacksonville Area Legal Aid, said in a Reuters interview that in most instances homeowners can’t afford lawyers and don’t challenge the foreclosures.
In many states, judges often approve the foreclosures without carefully examining the documents, she said. And at least until recently, when widespread questions were raised about the legitimacy of mortgage documents, judges routinely accepted belated mortgage assignments — even in cases contested by the homeowners, she said.
Equally difficult to explain are mortgage assignments signed by LPS Minnesota employees purporting to be officers of lenders that no longer existed. For example, in January 2010, two Minnesota employees jointly signed one as officers of Encore Credit Corp., defunct since 2008.
On other occasions, LPS employees signed as authorized officers of American Brokers Conduit, well after the subprime lender had been liquidated in bankruptcy. And in many instances they signed as officers of Sand Canyon Corp. In a March 18, 2009 affidavit, Sand Canyon’s president, Dale M. Sugimoto, said the company had completely exited the mortgage business in 2008 and had no mortgages to assign.
In written answers to questions, LPS spokeswoman Kersch didn’t respond directly to questions about the employees signing mortgage assignments after the foreclosures had been filed, or about signing on behalf of defunct companies. Instead, she said that the LPS employees signed mortgage assignments because lawyers who had filed foreclosure cases asked them to. She said the lawyers “decide when and if an assignment of mortgage is required.”
Shortly after the federal investigation was launched in December 2009, LPS began moving to curtail document-signing activities at the company itself. LPS says that the Minnesota office stopped signing mortgage assignments at the end of January 2010, and public records appear to confirm that. Carbiener said during the analysts meeting that LPS has now ended all signing of mortgage assignments and affidavits at the company.
Without someone to draw up replacement documents, though, LPS’s clients faced potential hardship, because so many mortgages were never assigned by lenders, as required, in the first place. Without these documents, thousands of foreclosures all over the country would come to a halt.
Reuters has learned that rather than stamping out the practice, LPS in December 2009 began transferring signing operations out of its own offices and into those of firms it has close relationships with. Kersch confirmed that LPS sent personnel to work “at client locations to assist clients during this period.”
For example, LPS arranged through a local employment service to hire about a dozen notaries, sending them to work at a new signing operation set up in the Jacksonville office of American Home Mortgage Servicing, one of LPS’s biggest clients.
Records from county recorders’ offices show that at least as recently as October, American Home Mortgage Servicing employees signed exactly the same type of questionable mortgages assignments that LPS staffers at DocX and in Minnesota had signed. These included assignments done on behalf of defunct companies like American Brokers Conduit, and after foreclosure actions already had been filed. Reuters obtained a partial list of the names of the LPS-hired notaries. Copies of mortgage assignments available publicly show that these notaries notarized many of these assignments, including ones signed on behalf of defunct companies.
In interviews, two of the notaries, who asked that they not be identified, said the American Home Mortgage Servicing office also set up a “robosigning” operation for affidavits, another type of document required in foreclosure cases. The employees who signed the affidavits were swearing that they had verified the facts listed in them, such as the specific amounts owed by homeowners.
But the two notaries, who said they were dismissed after raising questions with supervisors about the practices, said that each morning about a half-dozen American Home Mortgage Servicing employees in about an hour would sign some 200 affidavits received via LPS’s computer system, without reading them, let alone verifying the facts they contained. “In that time, come on, you have not verified figures in 200 documents. That’s impossible,” one of the notaries said.
Philippa Brown, spokeswoman for American Home Mortgage Servicing, said in an e-mailed statement that “We recently had independent audits conducted on our processes and it was found that at no time was AHMSI (American Home Mortgage Servicing Inc.) ‘robosigning’.” She confirmed that the company had used DocX until December 2009, and then “contracted with LPS” to provide it with notaries “in connection with execution of affidavits and other documents” in American Home Mortgage Servicing’s office. Concerning assignments the company signed for defunct lenders, Brown said American Home Mortgage Servicing “obtains authorization from the previous parties,” but did not explain how.
LPS acknowledged that it had sent notaries to several companies to help them set up signing operations. Kersch said: “When LPS Default Solutions group transitioned away from signing documents on behalf of its customers, in some cases it employed notaries
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who worked on-site at client locations to assist clients during this period.” The spokeswoman confirmed that LPS provided training at these sites, but said it was only “technical” training on using the LPS Desktop system.
TROLLING FOR CASES
It remains unclear whether LPS faces more legal risks because of its document-signing operations or because of its odd arrangement with the lawyers assigned to file foreclosure actions.
Reuters has obtained new details of how the relationship worked from copies of the “network agreements” the law firms sign with LPS, among other sources. Interviews and records from court cases show that this system often worked to the detriment of homeowners struggling to keep their homes.
LPS says that clients are the ones who pick law firms to represent them in foreclosure cases. But copies of its agreements with clients reviewed by Reuters state that the company’s clients sign up to use LPS’s network of lawyer. The agreements and depositions from lawsuits show that when a homeowner goes into default, the LPS system automatically selects a law firm in its network, sometimes using criteria set by a client, and transmits an offer of work that pops up on the law firm’s LPS Desktop screen.
The firm has no more than a couple of hours to accept the job. And if it does, it immediately agrees to pay an up-front fee to LPS. The law firms also pay LPS a monthly fee for use of the LPS Desktop system.
The company denies that it charges fees to lawyers in exchange for assignments of work. Kersch said the company charges fees strictly for the use of LPS’s computer system. Carbiener on October 29 said: “Our services are nonlegal, and are similar to any other operational cost of a law firm such as the licensing costs they pay for word-processing software or accounting software.”
But in a lawsuit deposition on January 13, 2010, Christian Hymer, an LPS first vice president, testified that the company often signs up the law firms that are part of its network. In addition, until recently, lawyers signed work agreements only with LPS, not with the loan servicers. Kersch said that currently lawyers are required to sign separate agreements both with LPS and the servicers.
Laws in nearly all states forbid lawyers to share legal fees with nonlawyers. The laws are intended to prevent kickbacks for funneling legal work to an attorney, the cost of which would be passed on to unsuspecting clients or, as in foreclosure cases, billed to homeowners.
LPS isn’t a law firm. The Mississippi class action suit alleges that LPS is a nonlawyer middleman between the servicers (acting on behalf of trusts that own the mortgages) and the lawyers. It alleges that the company illegally decides which law firms get to file foreclosure cases, and makes decisions about what they file.
RED, YELLOW, GREEN
Interviews, deposition transcripts and LPS’s own records underline that the company keeps its clients happy and maximizes its own fee income by whipping law firms to gallop cases through the courts.
The law firms are on a stopwatch: Kersch confirmed that the LPS Desktop system automatically times how long each firm takes to complete a task. It assigns firms that turn out work the fastest a “green” rating; slower ones “yellow” and “red” for those that take the longest.
Court records show that green ratings go to firms that jump on offered assignments from their LPS computer screens and almost instantly turn out ready-to-file court pleadings, often using teams of low-skilled clerical workers with little oversight from the lawyers. Copies of company newsletters from shortly before LPS was spun off show that the company each year gave awards to the law firms that were consistently the fastest.
Firms that move more slowly were slapped with “red” designations. For them, work offers dried up.
LPS denies that the rating system is used to punish slower firms. Kersch said the ratings are generated so that law firms can compare their speed and efficiency with an average calculated for a wide group of firms.
LEGAL AFFAIRS
The term “robosigners” was coined to describe the low-level clerical workers who signed many thousands of affidavits for foreclosure cases, swearing to the truth of facts they had never checked. But it turns out that the professionals at these firms — the attorneys who have strict legal and ethical obligations to file truthful documents in court — have carried out similar activities on a large scale. They allowed others to sign their names to multiple types of court pleadings they had never read or bothered to check, involving many types of documents.
In an April 2009 court decision, Diane Weiss Sigmund, a federal bankruptcy judge in Philadelphia, specifically faulted lawyers whose firm filed LPS-transmitted documents in court using clerical workers to sign the name of a lawyer who hadn’t looked at them.
In that case, it turned out that, contrary to the documents supplied via the LPS system, the homeowners weren’t in default on their mortgage.
Referring to the LPS computer system, the judge stated, “the flaws in this automated process become apparent.” She added: “An attorney must cease processing files and act like a lawyer.”
Jacksonville legal aid attorney Charney says that carelessly prepared documents, containing basic errors, have been used to foreclose on a big portion of the homeowners who have lost their houses.
LPS denies that its system encourages carelessness by law firms. In the October 29 conference call, Chief Executive Carbiener said that based on routine internal reviews, “we are not aware of any defects in our signing and review processes that resulted in the wrongful foreclosure of any borrower.”
(Editing by Jim Impoco and Claudia Parsons)
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24 Responses

  1. INVESTMENT PROPERTY EXCHANGE SERVICES, I
    Formerly known as
    Entity Name: FIDELITY NATIONAL 1031 EXCHANGE SERVICES, INC.
    Dept ID #: F05353024
    CA Formation
    Mailing Address
    ________________________________________
    INVESTMENT PROPERTY EXCHANGE SERVICES, I
    601 RIVERSIDE AVENUE
    JACKSONVILLE, FL 32204

    06/14/1999 Qualification
    11/22/2000 Forfeiture failure to file property returns
    10/26/2001 R-Qualification/Name Change
    THIS AMENDMENT RECORD INDICATES THE NAME CHANGE FROM:
    FIDELITY NATIONAL 1031 EXCHANGE SERVICES, INC. TO:
    INVESTMENT PROPERTY EXCHANGE SERVICES, INC..
    12/04/2003 – Resolution
    12/01/2009 Resident Agent Change of Address

    Radah Butler President
    M. Liss Jones Kane, Secretary

    2001- INVESTMENT PROPERTY EXCHANGE SERVICES, INC..
    Fidelity National Financial
    Michael McArthur
    Tax Department
    4050 Calle Real
    Santa Barbara CA 93110

    “has not done intrastate, interstate, or foreign business in MD before qualification as a foreign Corporation or after qualification or registration was cancelled?

    MD Registered Agent:
    Corporation Trust Inc.
    300 East Lombard St
    Baltimore MD 21202
    Jeffrey Graves
    Assistant Secretary

    Does 2001 Disclosure mean? As Investment Property Exchange Services, Inc?

  2. Looks like the SEC can profit from the frauds as well on the back end.

  3. I’m here by accident. I started reading and I must tell you that your blog is great. You are writing so many interesting things. I can’t agree with many of them, but it’s ok. I will probably visit your blog more often. I would like to use your words on my own blog. Is it posiible? – Paula

  4. To B. Davies:

    Thanks for the great info!

    I am having a hard time accessing that last SCRIBD post, however. (I don’t know if the problem is on my end or yours.) But the stuff that I could access was extremely interesting.

    I believe that you and I have a somewhat related IndyMac loan, because when I googled one of our IndyMac reference numbers last night–some of your SCRIBD notes came up. A gmail address popped up also–may I contact you?

    (I think I found some interesting IndyMac info, but I wanted to run it past you first, to make sure I have my facts straight.) Thanks!

    (Mike)

  5. Another Erroneous Securitization-Industry-Defending Post by Paul Jackson

    http://www.nakedcapitalism.com/2010/12/another-erroneous-securitization-industry-defending-post-by-paul-jackson.html

  6. http://www.scribd.com/doc/43792901/Davies-Endorsed-Copies-1st-and-Second-With-Assignments

    NOW I HAVE A BANK ONE WAREHOUSE, A COLONIAL BANK WAREHOUSE. INDYMAC FDIC NEARLY A YEAR EARLIER THAN TAKEN OVER.

    SCREEN SHOT CLOSING DOCS.

    http://www.scribd.com/doc/40680237/Indymac-Final-Docs-2-FROM-RAST-2007-A5-WAREHOUSE-COLONIAL-BANK-INVESTOR-INDYMAC

  7. On March 19, 2009, the Federal Deposit Insurance Corporation (FDIC) completed the sale of IndyMac Federal Bank, FSB, Pasadena, California, to OneWest Bank, F.S.B., Pasadena, California. OneWest Bank, FSB is a newly formed federal savings bank organized by IMB HoldCo LLC. All deposits of IndyMac Federal Bank, FSB have been transferred to OneWest Bank, FSB.
    On July 11, 2008, IndyMac Bank, F.S.B., Pasadena, CA was closed by the Office of Thrift Supervision (OTS) and the FDIC was named Conservator. All non-brokered insured deposit accounts and substantially all of the assets of IndyMac Bank, F.S.B. have been transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), Pasadena, CA “assuming institution”) a newly chartered full-service FDIC-insured institution. No advance notice is given to the public when a financial institution is closed.
    The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should answer many of your questions.

    THE MERS AUDIT TRAIL HAS FDIC AS RECIEVER FOR INDYMAC ON 6-27-2007. THIS WAS BEFORE THE TAKE OVER OF INDYMAC BANK BY THE FDIC

  8. Must See…

  9. MERS AUDIT TRAIL OF FIRST AND SECOND NOTES.
    THIS WAS OBTAINED BY SUPOENA.

    http://www.scribd.com/Supoena-Records-From-From-Mers-12-08-2010/d/44917907

  10. Paltrow wrote an excellent article. As good as I’ve seen in regard to Fidelity/LPS.

    He did fail to make any mention of the Louisiana BK case In Re Wilson. The US Trustee has filed a Motion for Sanctions against LPS. The hearing on that was to have been December 1, 2010.

    I’m anxious for Judge Magner to rule, and for the transcript of the hearing to become available.

    This case may take down LPS rather explosively.

  11. Another win in California! Monday v. Saxon Mortgage

  12. LPS is highly prized in Florida by our political establishment. They provide many jobs in Jacksonville. They were under consideration for millions of dollars of FL money to bring in more employees. Don’t know if that deal stuck. Collins Center is a public policy group granted the “franchise” for foreclosure “mediations” in FL, by the FL Supreme Court. Many on the board of the Collins Center are attorneys. Roderick Petrey is the man in charge. He is former counsel to Holland and Knight. Holland and Knight is in -house counsel for LPS. Another board member is ex Holland and Knight. Can we all wonder why so many mediations in FL are suspect in what has been accomplished on behalf of FL homeowners? The truth is now subject to audit to see which way the winds blew….

  13. When will Tiffany & Bosco be under investigation ?
    Maybe never since there is a direct connection between Senator John McCain and the Bosco family. ( Go Figure ) The cover up continues.

  14. Here is the real kicker: every single one of these defective “foreclosures” with phony documents can be overturned, notwithstanding that someone else has bought the house and is sitting in it. the “buyers” are kidding themselves that they are protected by Title Insurance; those entities are all going under and into their own Ch. 11 Filings, so the homeowner with the contract will become an unsecured non-priority creditor, unpaid. If you buy title insurance from a subsidiary of the servicer, then when the servicer collapses, so will the insurer, and there goes your cash. Nobody in his right mind is going to buy a foreclosed house. These title problems are not going away. Perverse result: a demand for new home construction, as the houses with tainted titles cannot be sold. Ghost towns of subdivisions of houses with tainted titles will be the now Love Canals of the future.

  15. Any Grand Jury Indictments connected to Lender Processing Services has to focus on the part Wm. P Foley II played in the mortgage fraud sweeping the nation.

    Before there was Jeff Carbienor at the helm of LPS, there was Wm P Foley II, a man of many hats – CEO of Fidelity National Title,- Chairman of Fidelity National Information Service.- Chairman of Board of Directors for Fidelity National Financial and when LPS and Docx issues got Hot, Wm P Foley II retired
    from LPS. in April 2009.

    When Astoria Federal S & L stated it Indemnify Indemnify Indemnify for a void judgment ab initio we are stepping aside and the title companys are coming in. Fidelty National Title and Coronet Title would not indemnify but wanted to fight for forged deeds- , I wrote a simple letter to Wm P Foley CEO of Fidelity National Title -what went wrong at FNT that your ny attorney Thomas Malone finds himself fighting for a forged deed, their reply to me was It is proper for FNT to fight under the circumstance the circmstances beinf a forged deed.

    Little did I know this was only the tip of the iceberg of all the fraud revolving around Wm. P Foley II

  16. Looks like the SEC can profit from the frauds as well on the back end – see “Bank of America Deal in Muni Case May Be `Tip of the Iceberg'”

    from article: “Bank of America agreed to pay $67 million in restitution directly to states from California to Connecticut, and another $70 million to the SEC, the Internal Revenue Service and the Office of the Comptroller of the Currency, according to statements from the agencies and states. Varney said the bank’s agreement covers activity from at least 1997 through 2002. The SEC said the bank neither admitted nor denied its findings in agreeing to settle a related securities-fraud complaint.”

    at http://www.bloomberg.com/news/2010-12-08/bank-of-america-deal-in-muni-case-may-be-tip-of-the-iceberg-.html

  17. NDEX WEST LLC, NATIONAL DEFAULT EXCHANGE WAS ACQUIRED BY DOLAN MEDIA (TICKER IS DM). DOLAN MEDIA ON THEIR RECENT CONFERENCE CALL BOASTED TO SHAREHOLDERS THAT THE

    http://www.scribd.com/doc/44871599/NDEx-West-and-Dolan-Media-Information

    DOCX OR LPS DEFAULT PROBLEM WAS NOT THEIRS BECAUSE THEY HAD SOME SPECIAL SYSTEM THAT PREVENTED THAT FROM HAPPENING.

    LISTEN TO THE CALL ON YAHOO FINANCE UNDER TICKER DM, HEADLINES CONFERENCE CALL OR GO TO THEIR WEBSITE TO LISTEN. THESE PEOPLE HAVE BRASS B……S. WHEN YOU STEAL LIE WITH A STRAIGHT FACE. THAT IS THE UNITED STATES BANKING AND COLLECTION SYSTEMS.

  18. WSJ—FANNIE AND FREDDIE MAC PRESSURED TO DO MORTGAGE WRITE DOWNS.

    http://www.scribd.com/doc/44900994/Fannie-and-Freddie-Mac-Pressured-to-Mark-Down-Principles-of-Loans-WALL-STREET-JOURNAL

    An agreement with the two government-owned mortgage giants to write down so-called underwater loans could reduce the threat to the U.S. housing market from the glut of homeowners believed at risk of default should their personal finances or home prices worsen. A deal would deepen losses at Fannie Mae and Freddie Mac, which already have cost taxpayers about $134 billion.
    Fannie Mae and Freddie Mac, which own or guarantee about half of all first-lien mortgages in the U.S., have been highly reluctant to reduce loan balances, especially for borrowers who are still making payments.

  19. After a diligent search, we have found a REAL reporters!

    I’m sure they will be fired shortly…..

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