Servicer Sues LPS-DOCX OVER ROBO-SIGNING — “SURROGATE SIGNING”

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COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE

ROBO-SIGNING IS NOW CALLED SURROGATE SIGNING

AHMSI SUIT CONFIRMS PRACTICE IS WRONG, UNAUTHORIZED AND INVALID

EDITOR’S NOTE: I find it interesting that LPS continued to fabricate and forge documents after AHMSI told them to stop. It could only mean that they were really taking orders from someone else. The ankle biting is escalating.

The AHMSI lawsuit seeks:

  1. a declaratory judgment that the contract between the parties, as amended, is binding and effective;
  2. an order compelling defendants to arbitrate AHMSI’s claims for breach of contract and indemnification; and
  3. an award of damages relating to non-arbitrable claims sufficient to reimburse AHMSI for the millions of dollars in losses stemming from defendants executing, notarizing, and recording improper assignments on behalf of AHMSI.

DocX prepared, executed and recorded lien releases, assignments of mortgage and related documents for AHMSI from April 2008 through November 2009.  During this time certain DocX and LPS employees were duly appointed by AHMSI’s board of directors as “Special Officers” of AHMSI, with powers limited to executing mortgage-related documents.  However, in late November 2009, LPS informed AHMSI that from March 2009 through October 2009, a substantial number of assignments of mortgage were executed by “surrogate signers,” that is, by individuals who were not designated as Special Officers, but who signed in the name of one or more of the designated Special Officers. At no time did AHMSI sanction or know of the “surrogate signing” practices of LPS and DocX.  

Jordan Dorchuck, chief legal officer – AHMSI, said, “Upon learning of this unauthorized use of surrogates, we terminated the services of DocX and promptly conducted an extensive, 50-state remediation effort to address any issues caused by this problem.  Our remediation efforts are, and have been, focused on correcting affected assignments of mortgage to ensure they comply with all local, state and federal laws. This has been a vast undertaking, necessitating coordination with local counsel in each state.”  

Based in Coppell, Texas, AHMSI is the 15th largest mortgage servicer in the country, managing nearly $72.5 billion in loan servicing, representing approximately 384,000 customers. Since its inception in April 2008, AHMSI has modified over 175,000 mortgage loans, including over 27,000 under the U.S. government’s Home Affordable Modification Program (HAMP). AHMSI’s more than 3,000 associates work each day with the mission of helping families preserve their dream of home ownership. AHMSI is a privately-held company owned by equity funds managed by WL Ross & Co., a financial management company with over $8 billion in assets under management.

SOURCE American Home Mortgage Servicing, Inc.

Philippa Brown, +1-469-645-3103, philippa.brown@ahmsi3.com

AHMSI sues LPS and DocX over ‘surrogate’ signing scandal
by KERRY CURRY
Tuesday, August 23rd, 2011, 10:43 am

[[Update 1: Changes terminology from robo-signing to surrogate signing.]]

Lender Processing Services Inc. (LPS: 17.045 -2.43%) and its DocX affiliate caused American Home Mortgage Servicing Inc. to lose millions from the robo-signing of mortgage documents, a lawsuit filed Tuesday contends.

Coppell, Texas-based AHMSI filed suit in a Dallas district court against Jacksonville, Fla.-based LPS alleging more than 30,000 residential mortgages across the country were affected by  “improper execution, notarization and recording of assignments of mortgage.”

LPS could not immediately be reached for comment.

The lawsuit comes on the heels of AHMSI’s unsuccessful attempt to recover its losses during more than a year of talks with LPS. AHMSI said the defendants first promised to indemnify AHMSI and then later claimed it had no duty to do so because the contract involved with the faulty assignments had already expired.

But AHMSI contends the “defendants conveniently ignore that they created tens of thousands of assignments of mortgage and accepted hundreds of thousands of dollars in payment in accordance with the terms of a supposedly nonexistent contract.”

The lawsuit seeks a declaratory judgment that the contract between the parties is binding and an order compelling LPS and DocX to arbitrate AHMSI’s claims of breach of contract and indemnification. It seeks an unspecified amount of damages, but puts the figure in the millions.

“DocX prepared, executed and recorded lien releases, assignments of mortgage and related documents for AHMSI from April 2008 through November 2009,” AMSI said.

Certain DocX and LPS employees were appointed by AHMSI’s board of directors as “special officers” of AHMSI with powers limited to executing mortgage-related documents, according to the mortgage servicer.

“However, in late November 2009, LPS informed AHMSI that from March 2009 through October 2009, a substantial number of assignments of mortgage were executed by ‘surrogate signers,’ that is, by individuals who were not designated as special officers, but who signed in the name of one or more of the designated special officers. At no time did AHMSI sanction or know of the ‘surrogate signing’ practices of LPS and DocX,” AHMSI said.

The servicer said it terminated its contract with DocX after the revelation and conducted a 50-state remediation effort to correct affected assignments.

“Defendants practice of ‘surrogate signing’ has forced AHMSI to address a myriad of legal issues, problems and proceedings in venues across the country,” the lawsuit alleges.

AHMSI is one of the largest mortgage servicers in the country. It manages nearly $72.5 billion in loan servicing, representing about 384,000 customers, the company said.

In October, LPS said varying signature styles from its subsidiary, DocX, resulted from a DocX practice that has been discontinued and only affected two lenders/servicers, but did not identify those servicers. LPS said at the time that it had not executed affidavits with substantive information on behalf of its clients since 2008, and said it has been mischaracterized in the media in terms of its default-related services.

Since then, LPS and DocX have the the source of several investigations. In April, Michigan Attorney General Bill Schuette said he would look into questionable mortgage documentation filed in the state’s Register of Deeds offices, particularly those linked to DocX.

Also in April, LPS signed a consent order with the Federal Reserve to settle a federal investigation into foreclosure practices at the firm and major mortgage servicers. LPS was required to boost oversight of its processes.

Write to Kerry Curry.

Follow her on Twitter @communicatorKLC.

32 Responses

  1. Change your name if that is your real name on these posts.

  2. What the hell is wrong with the courts, I spent 9 months in jail and I forged nothing. At the hands of a San Diego prosecutor, false charges and spineless judge. I sued everyone when I was released and the person who took my house after 5 forged assignments admitted on the stand in superior court, when questioned by me that he and his broker committed the crime I was incarcerated for, I asked the judge if he just herd the admission, the judge replied I herd him, I still lost the suit to get my house back. The courts wont acknowledge what is going on, I spend time in jail for a crime committed admittedly in open court by someone else and I still loose my house through the courts to the person who is responsible for the crime and participated in the fraud through foreclosure. Only in america, Bullets work the courts do not!!!!!!!!!!

  3. […] Servicer Sues LPS-DOCX OVER ROBO-SIGNING — “SURROGATE SIGNING” MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE ROBO-SIGNING IS NOW CALLED SURROGATE SIGNING AHMSI SUIT CONFIRMS PRACTICE IS WRONG, UNAUTHORIZED AND INVALID EDITOR’S NOTE: I find it interesting that LPS continued to fabricate and forge documents after AHMSI told them to stop. It could only mean that they were really […] […]

  4. Are you soliciing for an attorney???? Are you attorneys yourselves? If you have “won” under what theory and could you cite a case? What do you consider a win? A loan mod with a defective title or are we having money damages? Do you get discovery.

    Am curious. reply to gwencaranchini@sbcglobal.net former trial attorney, now paralegal and soon to practice again. Give one a cite on one of the “won cases”.

  5. Howdy folks,

    It’s Dan Moss… You know… the Michigan guy with multiple WINS!!! For whatever it’s worth; we have a few ‘Robo-Signers’ coming on-board to assist us with any applicable Clients.

    That’s right folks, instead of sifting through blogs everyday/ALL DAY, we are actually bringing solutions to those of you who… oh, I don’t know… THOSE OF YOU WHO, ACTUALLY WOULD LIKE TO WIN YOUR CASES, INSTEAD OF GOING THROUGH THE MOTIONS…

    You would be surprised what can be pulled off if you offer the right, motivation.

    Long story short, WE CAN… WILL… and DO WORK, in multiple States.

    Please shoot us an email at:

    lowecommunityresourcepartners@live.com

    Please be sure to have the following items ready and in ‘.pdf format’ so that, WE CAN GET STARTED…

    If it’s any consolation; you will not find one Client of ours who can or would honestly, say ANY bad words about what we do and the services that are offered.

    All of the ‘Lead Attorneys’ we work with… HAVE WINS (what more needs to be said)…

    God bless and talk to you soon.

    Dan Moss

  6. FFIEC National Information Cener
    A repository of financial data and institution characteristics collected by Federla Reserve System

    FEDERAL HOME LOAN MORTGAGE CORPORATION
    (RSSD ID: 2400770) 12/23/1913
    Washington DC, Domestic Entity

    FEDERAL NATIONAL MORTGAGE ASSOCIIATION (FANNIE MAE)
    (RSSD ID 1278516) 12/31/1980 moved 10/19/2001 to:
    3900 Wisconsin Avenue NW, Washtington DC 20016 Domestic Entity Other (No Parent listed for any of the related entities)

    FEDERAL NATIONAL MORTGAGE ASSOCIATION 11/16/1914 (rssd id 1538180) Philadelphia PA Domestic Entity Other

    FREDDIE MAC (PRE-1989) (3399817) 11/2/1988
    8200 Jones Branch Dr, MCLEAN VA Domestic Entity Other

    FREDDIE MAC – DISTRIBUTION ACCOUNT (3439889) 12/29/2005
    105 Orchard Street, EAST RUTHERFORD NJ Domestic Entity Other

    FREDDIE MAC – MBS DISCHARGE (3399983) 4/20/1993
    8200 Jones Branch Drive, MCLEAN VA Domestic Entity Other

    FREDDIE MAC – POST ’88 DISCHARGE (3399929) 4/21/1992
    8200 Jones Branch Dr, MCLEAN VA Domestic Entity Other

    FREDDIE MAC PC (PRE-1989) (3399808) 11/2/1988
    8200 Jones Branch Dr, MCLEAN VA Domestic Entity Other

    FEDERAL HOME LOAN BK (PRE-1989) (3399796) 11/2/1988
    11921 Freedom Dr, Suite 1000, Reston VA Domestic ENtity Other

    FEDERAL AFFORDABLE HOUSING (3263048) 4/1/2004
    Clearwater, FL Domestic Entity Other

  7. SO FREDDIE TRYING TO ‘REMOVE’ ITSELF THROUGH ‘SPIN’
    Private Portal Replaces Effort by GSE

    No more neighborhood conventions! They no longer have to pay $10 an hour to the people sitting at the desk to input data that consumers can go on-line and register themselves.

    After receiving billions in taxpayer dollars, Steve Abru – CEO – GMAC funding ‘again’ ? Steve Abreau states ‘preparing for the mediation process can sometimes be overwheling’ Steve Abreau CEO GMAC Mortgage (dba GMAC MORTGAGE Company of Iowa, dba GMAC MORTGAGE Company of PA, dba GMAC Bank, dba GMAC LLC, dba… SERVICER) GMAC MORTGAGE the proud first mortgage servicer to use this new Web-based tool. Maryland homeowners who receive a foreclosure notice have 25 days to opt-in to foreclosure mediation. Hello! Maryland is where the consumer has been lied to and sold by these good servicers REO debt as a new mortgage.

    Several banks and nonprofit groups testing a website portal to handle modification documents processed by counselors & servicers can’t become lost inside of the ‘Hope LoanPort’ a nationwide databse of borrowers in hardship, default and worse.

    GMAC’s funding development of the Web portal with State of Maryland who are adopting the Hope LoanPort to exchagne foreclosure mediation documents electronically. MD is a multi-judicial state. Hmmmm. They are a vendor, servicer who will allow subscribers such as housing counselors, servicers, investors, to update the electronic database.

    The foreclosure portal is scheduled to go live in October. “We’re proud to be the first mortgage servicer to use this Web-based tool,” Abreu said.

    History repeating itself — tnharry, sorry if its boring.and old news.

    HAMP processing is much smoother. Mortgage servicers completed 31,600 HAMP modifications in June including 2,000 mods that involved principal reductions, according to a Treasury Department report

    Has anyone see the principal reductions modification amendments? Appears I’m hearing from borrowers who have been tricked into paying $10K to get a ‘new mortgage’ when its not, and attached the unsecured debt to the amended mortgage. Immediately after filing the new insurance, etc., the perpetrators ‘reo lender’ ‘reo broker’ file to attach the debt the borrower believed was written off.

    Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Since its inception, Freddie Mac helped increase the homeownership rate in America to record levels by purchasing more than 41 million mortgages. Freddie Mac has long recognized the benefits of using technology to help reduce the time and cost of getting a mortgage loan, which in turn helps consumers obtain affordable, quality housing.

    In February 2002, Freddie Mac purchased an existing 105,000 sq. ft. data center. The facility was urgently needed and management wanted the facility retrofitted, staffed and operational within two months. Tim Prime, Freddie Mac’s Director of Facilities, knew he needed additional manpower to provide afterhours coverage for the new data center and several smaller computer rooms throughout Northern Virginia.

    At Freddie Mac, like most service-driven, technology-reliant businesses today, a small but dedicated in-house technical staff was constantly busy reacting, moving from one alarm situation to the next.This left them unable to focus on proactive measures or long-term goals. Internal staff was stretched to the breaking point.

    Considering the challenges of finding, hiring and training personnel internally, outside staffing offered a very attractive alternative. However, the facility’s critical nature demanded expertise and responsiveness few firms would be able to provide.

    Looking for a reliable and experienced partner, Freddie Mac placed Lee Technologies on the short-list of firms capable of meeting this ambitious deadline.

    Freddie Mac had been Lee Technologies hardware customer for nearly a decade and Lee had an excellent track record for quality products and responsive service.

    Lee Technologies was ultimately selected over the other bidders based on professionalism, expertise and responsiveness. In addition, Freddie Mac had met, and was extremely impressed by individuals that would be onsite ensuring maximum uptime in the missioncritical facility.

    Retrofitting a facility in a matter of months is a challenge in itself. In addition, newly mandated post-9/11 disaster recovery procedures would need to be implemented.

    Freddie Mac was also expanding its 24/7 operations to accommodate the growth of online mortgage transactions. And of course, the growth of IT in general, had led to a shortage of qualified, experienced technical staff in the region.

    Beyond a general shortage of qualified mission-critical manpower, most in-house human resources personnel are generalists, tasked with hiring everyone from accountants to administrative assistants. Recruiting missioncritical infrastructure experts is a specialized process. Mission-critical staffing requires a unique blend of technological expertise and real-world, hands-on experience with electrical and mechanical systems.

    The People Behind the Technology – The Lee Technologies’ Staffing Solution placed highly-trained Facility Resource Technicians at the Freddie Mac site.The Lee Technician supervises and performs maintenance tasks associated with the mission-critical environment as well as conducting daily walk-throughs of the facility.

    Since mission-critical support is Lee’s core competency, headaches and guesswork are eliminated. Lee technicians have worked in the world’s most advanced data centers, providing customers an unsurpassed knowledge base. Furthermore, Lee provides the depth and “bench strength” organizations like Freddie Mac need to ensure that qualified personnel are always available.

    According to Freddie Mac’s Tim Prime, “Lee Technology quickly ramped up to provide around the clock coverage and was flexible enough to take on all jobs associated with Mission Critical support.”

    In addition, Lee Staffing services relieve pressure on the Freddie Mac HR department. Lee Technologies’ own screening and hiring process has been carefully designed and refined to identify candidates with qualifications needed for mission-critical environments. Lee Facility Resource Technicians also receive ongoing training and evaluation programs that ensure highperformance and steady career growth.

    Uptimes for Freddie Mac: With Lee Technicians onsite, faster response times and Lee’s legendary maintenance procedures provide more uptime, higher productivity and improved morale. The Freddie Mac facilities staff is freed to focus on proactive rather reactive tasks. Risk and downtime are dramatically lower, with response times reduced from 30 minutes to immediate.

    And since Lee is onsite to perform regular maintenance on key systems such as HVAC and batteries, fewer failures occur and back-up systems are always ready. In fact, in the past full recovery of IT from a data center failure could take as long as 80 hours.Today, thanks to redundancy, staffing and focused maintenance scheduling, the same recovery is accomplished in just minutes.

    Freddie Mac sees Lee Technologies as a trusted partner and part of the Facilities Management team. Lee Technologies has also provided added services which the client cites as “above and beyond” the call of duty.

    Freddie Mac has added a second 24×7 Lee Facilities Resource Technician as a roving position covering 7 sites throughout the Northern Virginia. Lee now provides 7×24 coverage for all sites and is the first response for alarm situations.

    “Lee did an excellent job meeting the challenges that faced them,” said Prime, “It is clear that they strive to develop strong client relationships. They’ve certainly succeeded in assuming the demands and responsibilities of mission-critical staffing.”

    At the end of day, Lee technicians have found a home at Freddie Mac.

    Schneider Electric ‘trade name’ Lee Technologies
    Lee Technologies Group, 12150 Monument Dr, Fairfax VA

    Lee Technologies was founded in 1983. Our initial mission was to provide environmental computer room mechanical and electrical support equipment, such as uninterruptible power systems, air conditioning systems, and generators to the commercial and public sector markets.

    Since that time, Lee Technologies has grown into a total lifecycle solutions provider of business-critical data center infrastructure. We design, build, operate, monitor and maintain business-critical data centers for some of the most demanding Fortune 1000 companies and government agencies in the world. With more than 25 years of industry experience, our depth and breadth of expertise at solving business-critical data center challenges is unparalleled.

    Since 1983, Lee Technologies has been recognized with many awards for our service, growth and continued community involvement. The following awards are just a sample of our more distinguished accomplishments:

    -2011 Green Enterprise IT Award – Audacious Idea
    -NVTC Volunteer Service Award
    -Inc. 500 Member
    -Small Business Administration Award for Excellence
    -Washington Technology Fast 50 Member
    -Washington Building Congress Craftsmanship Award
    -Ernst & Young’s Greater Washington E-Services Entrepreneur of the Year 2000, John C. Lee, IV

    I’d love a job they must be hiring right?

    Look at all of the completed projects. Wonder what’s in the pipeline:

    Lee Technologies Completed Projects
    Data Center Design/Build: Hosted Solutions
    Thursday, Feb 24, 2011
    Location: Raleigh, NC 4 MW 150 w/sqft 8,000 SqFt of raised floor, expandable to 16,000 Construction time: six months Type: Live load expansion place …Read More
    Data Center Design/Build: Acxiom Corporation
    Thursday, Feb 24, 2011
    Location: Little Rock, AR Reclaimed 5000 SqFt of usuable space Type: Live load remodel Compressed timeframe …Read More
    Data Center Design/Build: Undisclosed Data Center
    Thursday, Feb 24, 2011
    Undisclosed Location: Mid Atlantic region 9 MW 140,000 Total SqFt 30,000 SqFt of Raised Floor 150 w/sqft, expandable to 300 w/sqft Type: Retrofit Other: Tier III certification, LEED Silver…Read More
    Data Center Design/Build: Stream Data Centers
    Thursday, Feb 24, 2011
    Location: Richardson, TX 2.2 MW 110 w/sqft, expandable to 220 w/sqft 20,000 SqFt total 10,000 SqFt of Raised Floor Six month construction time Type: Retrofit …Read More
    Data Center Assessment: Trinity Information Systems
    Thursday, Feb 24, 2011
    Lee Technologies was selected by Trinity Information Systems to provide facility assessment services to address future growth for their data centers located in Michigan and Indiana. The two data centers (over 13,500 square feet) support eleven main…Read More
    Data Center Design/Build: CyrusOne
    Thursday, Feb 24, 2011
    This turnkey design-build project consisted of the complete phased design and construction of a data center property for CyrusOne in Houston, Texas (approximately 20,000 square feet). Lee Technologies designed the project as a Tier III…Read More
    Data Center Commissioning: Sprint MNO NOC and OPS2 Lab
    Thursday, Feb 24, 2011
    Lee Technologies performed commissioning services for Sprint in Reston, Virginia on projects that totaled over $30 million in construction costs. Lee Technologies Service Teams’ scope spanned multiple sites and equipment and the team…Read More
    Data Center Commissioning: Verizon Wireless
    Thursday, Feb 24, 2011
    Lee Technologies acted as the Commissioning Authority for the 70,000 square foot Verizon Wireless Multi-Switch Center located in Sunnyvale, California. Lee Technologies was responsible for pre-startup verification, supervision of start-up…Read More
    Data Center Operations: Software Provider
    Thursday, Feb 24, 2011
    One of Lee Technologies’ most significant contracts is a data center facility operations and management contract with a major software provider. Under this contract, Lee Technologies provides on-site staffing 24 hours per day, 365 days per…Read More
    Data Center Design/Build: Arlington County
    Thursday, Feb 24, 2011
    Lee Technologies was responsible for Arlington County’s infrastructure project, which consisted of the replacement and upgrade of the existing HVAC system, UPS replacement and upgrade, and generator replacement and upgrade within the…Read More
    Data Center Equipment: U.S. Army – Defense Knowledge Online
    Thursday, Feb 24, 2011
    CRGT, Inc., formerly known as Cherry Road GT, Inc., was awarded a subcontract by Northrop Grumman Corporation to provide managed IT services in support of the U.S. Army’s Defense Knowledge Online (DKO) program. Lee Technologies was…Read More
    Data Center Commissioning: Drug Enforcement Administration
    Thursday, Feb 24, 2011
    Lee Technologies acted as the Commissioning Authority to provide commissioning services on the 85,000 square foot Drug Enforcement Agency Project “Sterling Park Technology Center” for the HVAC, Electrical, Plumbing and Fire…Read More
    Data Center Commissioning: Undisclosed Data Center
    Thursday, Feb 24, 2011
    Lee Technologies acts as the key Commissioning Agent at this Secure facility and provides technical expertise in weekly reviews for routine, preventive and emergency service on the critical equipment, which includes multiple air handling units…Read More
    Data Center Assessment: Undisclosed Data Center
    Thursday, Feb 24, 2011
    Lee Technologies provided an evaluation and written report for the operations and mechanical and electrical infrastructure for four (4) large data center facilities located in Texas. Lee Technologies noted the strengths and weaknesses of the…Read More
    Data Center Design/Build: Stennis Space Center
    Thursday, Feb 24, 2011
    Lee Technologies performed the green field construction of a new central energy plant at NASA’s John C. Stennis Space Center, located in Bay St. Louis, Mississippi. A multi-agency center, Stennis Space Center is NASA’s primary site…Read More
    Data Center Equipment: Northrup Gruman – VITA
    Thursday, Feb 24, 2011
    This computer data center consolidation project undertaken by Northrop Grumman involved constructing a 60,000 square foot primary computer center in Chesterfield, Virginia as part of its IT outsourcing contract with the Commonwealth of…Read More
    Data Center Operations: Digital Realty Trust
    Thursday, Feb 24, 2011
    Lee Technologies was selected by Digital Realty Trust to operate ten (10) of their business-critical data center facilities located in Phoenix, Chicago, St. Louis, Dallas and Houston. Lee Technologies assembled a team of 42 seasoned…Read More
    Data Center Operations: Capital One
    Thursday, Feb 24, 2011
    Lee Technologies provides facility operations 24 hours per day, year-round with 2 certified technicians per shift for Capital One’s 200,000 square foot Knolls Data Center, located in Glen Allen, Virginia. Lee Technologies’…Read More

  8. Freddie Mac and Fannie Mae (aka eFannieMae.com) are vendors, servicers over the CLOUD in which the new portal

    “Hope LoanPort” is integrated with FIS the only approved Origination Vendor whose vendors, subscribers, servicers, affiliates allow individual title & settlement agents, robo-firm attorneys, robo-firm-employees to order falsified documents creating eAllonges, eNotes, false Satisfaction of Mortgages, DOT, DOS, etc.

    And so is it any surpirse that the HAMP problems were spun producing smoke and mirrors through which you and I can’t see that HAMP now has a portal on the CLOUD thru which Hope Now Servicer Alliance faciliated by ‘a’ technology vendor.

    Funny about that FHMA requested (Freddie Mac) requested Fannie Mae to develop HAMP portal.

    FREDDIE MAC already owner along with Microsoft, FIS, FNF, LPS/DOCX, TD Services, TD Escrow Services, TD Financial Services, IBM Lenders Processing Services, Inc., …

    Here we consumers have been harmed since Home Technologies Inc was unleased in public domain c/o Microsoft, Freddie Mac, Chase, GMAC, Norwest, BOA, IBM, ….

    Source from National Mortgage News if you don’t have a subscription sign up for trial worth it!

    Federal Housing Finance Agency (Fannie’s regulator) pushed back, according to a new FHFA Office of Inspector General report.

    “FHFA and Treasury engaged in a significant dispute over Treasury’s request,” the OIG report says.

    “Officials in the FHFA’s Office of Conservatorship Operations opined that Fannie Mae lacked the in-house expertise to complete the project, and also raised operational and cost-based objections. Ultimately, Treasury agreed to remove Fannie Mae from the website development project,” the report says.

    (An FHFA spokeswoman indicated the agency has no disagreement with the IG’s reporting on this issue and declined to comment for this story.)

    Fortunately, several banks and nonprofit groups began testing a website portal to handle modification documents in late 2009 that became known as the Hope LoanPort.

    It was based on an existing system provided by a technology vendor. “It was fairly low cost because we enhanced it,” said Faith Schwartz, executive director of the Hope Now servicer alliance.

    “There are other portals but the Hope LoanPort was developed by servicers and counselors so they could get the information needed to make a decision—whether it is a HAMP mod, Fannie, Freddie or proprietary modification,” Schwartz said last week.

    After testing Hope LoanPortal in six markets, most participating HAMP servicers began using the portal in June 2010. But by then the lost document problems and other issues plaguing HAMP had largely discredited the Obama administration’s signature loan modification program.

    Even Democratic congressmen had become critical of the HAMP program and the slow responses by servicers.

    Senate appropriators complained about the HAMP servicers in a committee report released in August 2010.

    “We are dismayed that many of the banks participating in the program continue to drag their feet or are unfairly denying loan modifications to troubled borrowers after receiving billions in taxpayer dollars,” the committee report said.

    Today, HAMP processing is much smoother. Mortgage servicers completed 31,600 HAMP modifications in June including 2,000 mods that involved principal reductions, according to a Treasury Department report.

    “There is no excuse for lost documents today,” Schwartz said, with the availability of Hope LoanPort and other methods of communication that are low cost, safe and secure.

    “For counselors and servicers, lost documents are no longer an excuse,” she added.

    Separately, GMAC Mortgage and the state of Maryland are adopting Hope LoanPort to exchange foreclosure mediation documents electronically.

    GMAC is funding the development of the Web portal that will be used by housing counselors, servicers, investors and others.

    “Preparing for the mediation process can sometimes be overwhelming and Hope LoanPort offers borrowers a convenient option to assist with the process,” said Steve Abreu, president of GMAC Mortgage.

    The foreclosure portal is scheduled to go live in October. “We’re proud to be the first mortgage servicer to use this Web-based tool,” Abreu said.

    Maryland homeowners who receive a foreclosure notice have 25 days to opt-in to foreclosure mediation

    You know that FREDDIE MAC new UCD Uniform Collateral Document? File Doc ID will be affixed to ‘new acceptable appraisals and loan documents’ allowing foreclosures full-speed ahead, September 2011 target for phase I, March 2012 live and production environment.

  9. Master Servicer turns over foreclosures to sub-stitute real estate owned Lenders/Underwriters/Appraisers/Credit Risk Managers/Robo-firms who purchase the documents from LPS DOCX MERS FIS FNF eLynx, etc. And so here we go again the legal entity who ordered and paid for the services are they all listed in the complaint?

    Look at David Sterns complaints against the ‘creditors’.

  10. John Anderson:

    NOT A MORTGAGE!!!

    “…What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.

    The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.

    All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”

  11. THE FIVE ASSIGNMENT’S OF MORTGAGE IN MY CASE.

    1st Assignment was filed on 11/09/2008 naming CITYGROUP GLOBAL MARKETS REALTY CORP. as assignee and MERS as nominee for QUICK LOAN FUNDING INC. as assignor. This assignment was prepared by Ben Ezra & Katz, and it was not admitted into evidence in the trial, a fraud upon the court, and a prime example of the “Unclean Hands ” of the plaintiffs.

    Foreclosure suit was filed on 10/28/2008 served on 11/30/2008.
    LIQUIDATION PROPERTIES INC vs. JOHN EARL ANDERSON, et. al.
    IN THE CIRCUIT COURT OF THE SIXTH JUDICIAL CIRCUIT IN AND FOR PINELLAS COUNTY FLORIDA. CASE NO. 08-16377-CI
    They perhaps, should have listed Citygroup Global Markets Realty Corp as the plaintiff, even though according to the MERS Milestone Report, they were not the investor at the time suit was filed, in a attempt to deceive they filed another assignment.

    2nd Assignment was filed on 09/27/2009 naming LIQUIDATION PROPERTIES INC as assignee, and MERS as a nominee for QUICK LOAN FUNDING INC. as assignor. This assignment was prepared by DOCX of Alpharetta Georgia, and signed by Korell Harp and Tawanna Thomas and notarized by Brittney Snow, in Fulton County Georgia.

    On 02/23/2010 Defendant filed NOTICE OF FILING EVIDENCE IN SUPPORT OF DEFENDANTS OBJECTION TO PLAINTIFFS MOTION FOR SUMMARY JUDGMENT. In witch defendant presented evidence showing that the signors on my assignment Korell Harp, and Tawanna Thomas, were robosigners who claimed to be Vice Presidents of many banks, and that multiple people were signing their names. It also included a sworn affidavit from Lynn Szymoink a document fraud expert.

    3ed Assignment was filed on 08/13/2010 that had the same transfers as the second, but was signed by different signers. It was not presented by the plaintiffs attorney, I suspect because it was another DOCX of Alpharetta Georgia document, that says it was prepared in, and was to be returned to Ron Meharg in Alpharetta Georgia, even though LPS ordered them closed about that time, but this was notarized in Duval County Florida. Another clearly fraudulent document and another fraud upon the court, in a attempt to avoid the robosigner defense.

    4th Assignment was filed 08/18/2011 and is a . CORPORATE ASSIGNMENT OF MORTGAGE. That has
    CITYGROUP GLOBAL MARKETS REALTY CORP as assignor and AS LILLY LLC as assignee.
    It was prepared by Irving Potter c/o Steve Jensen and Associates
    Josselson & Potter 9400 SW Beaverton-Hillsdale Highway. Suite 131-A
    Beaverton OR. 97005
    It was notarized in Frederick County Maryland by Kathy E Green.
    IT IS RED FLAGED ON CLERKS RECORDS AS A WORK IN PROGRESS.

    5th Assignment was filed on 08/18/2011 and is a CORPORATE ASSIGNMENT OF MORTGAGE. that has CITY PROPERTY HOLDINGS F/K/A LIQUIDATION PROPERTIES INC. as assignor and
    AS LILLY LLC. as assignee.
    It was prepared by Irving Potter c/o Steve Jensen and Associates
    Josselson & Potter 9400 SW Beaverton-Hillsdale Highway. Suite 131-A
    Beaverton OR. 97005
    It was notarized in Frederick County Maryland by Kathy E Green.
    IT ALSO HAS BEEN RED FLAGED ON CLERKS RECORDS AS A WORK IN PROGRESS.

    How many Corporations can claim the ownership of a mortgage?

    I feel this case was over, at the start, and for many reasons, Quick Loan Funding Inc, Incorporation was suspended by the California Secretary of State on 01/25/2008 when their Agent for Service of Process resigned, and their Lender Law License was revoked in May of 2008 well before the suit was filed. That means in my mind that MERS could not assign or transfer anything as a nominee for a dead entity that Quick Loan Funding Inc was at the time the instant action was commenced on 08/28/2008.

    Am I wrong in my thinking?

  12. @Etolle

    you posted

    It’s coming up on the time to brew a keg of beer, pop a batch of popcorn, and sit back and watch as the banksters turn on one another and start devouring each others young. Then they’ll move up the food chain to mid-level management, dropping thousands of these hapless creatures who were just trying to serve their masters as best they could, even though they knew what they were doing was immoral, illegal, and just plain down and dirty bad for humanity.

    and the rest of your post……..

    couldn’t agree more.

  13. It will be token show trials only. Don’t forget the entire mechanisms of government–congress, the courts to a large extent, and especially the Obama admin– have been busy with the whitewash and coverup

    While this suit was being filed we hear as well that schneidermann has been pressured ton abate his investigation

    And don’t forget the 50 court systems with p

  14. For a really good laugh on how Sovereign Bank got screwed by an incompetent law firm and how the foreclosed homeowner made over $300K out of the deal…

    Really too funny and absolutely true!

    http://4closurefraud.org/2010/07/20/foreclosure-fail-the-case-to-follow-in-fl-sovereign-bank-plaintiff-vs-florida-default-law-group-p-l-dba-echevarria-codilis-stawarski-defendants/

  15. Question—who can we sue for breach of contract? Damages? I want my house AND I want BLOOD!!! AND PRISON for these wretches!!!

  16. Yes, E.Tolle—LETS START THE FLUSHING!!!

  17. Yes neidermeyer, I watched that whole thing unfold from a distance, knowing full well that it wasn’t going to end well. How could it? Anything built upon greed and the mass sufferings of fellow earthlings isn’t an acceptable form of business, IMO.

    It’s OK though. The more of these imbeciles that want to pile on to take advantage of a system that is 100% corrupt and worthy of nothing but total disdain….I’m talking about everything securitization…..they should gain nothing save for mass ridicule, exposing them for the money grubbing deceitful dregs of society we know them to be. Let them all go down together. We’ll be able to pick up the pieces after they’re gone. I don’t fear a collapse in the least. As a matter of fact I’m sure that we as a society need the cathartic experience that will be had by purging this rot from the system. We’ve been constipated with their conniving for far too long. A toast to their departure!

  18. E. Tolle ,

    What I find most funny about this is that Wilbur Ross bought into the foreclosure racket out of greed after the mechanics of stealing a house legally were already “perfected” by the big names and known to him … He started his own debt collector company , AHMSI , (pretending to be a servicer) and his own bank … he didn’t get caught up in the fraud little by little , he jumped in with both feet and used the biggest fraud outfit of all, LPS/DocX, to enrich himself with full knowledge of what he was getting into .. LPS is being VERY polite at this time as we are seeing in their statements … THAT WON’T LAST … They’re both going down.

  19. It’s coming up on the time to brew a keg of beer, pop a batch of popcorn, and sit back and watch as the banksters turn on one another and start devouring each others young. Then they’ll move up the food chain to mid-level management, dropping thousands of these hapless creatures who were just trying to serve their masters as best they could, even though they knew what they were doing was immoral, illegal, and just plain down and dirty bad for humanity.

    Those once lofty Captains of Industry who believed themselves to be untouchable, beyond reproach, even as they smirked unflinchingly at Congress while perjuring themselves in unison are doomed. Once seemingly untouchable, but only as long as their smoke and mirrors remained thick and confusing. But all abominations eventually end in like kind. Sow/reap. And their paid help in Congress will abandon them as soon as they see that their own asses are slinging.

    These architects of doom hired high priced accountants and attorneys; not to run profitable, orderly corporate presences offering reliable products to benefit mankind; instead they built huge machines capable of annihilating the entire planet, by raping and pillaging the masses all the while maintaining plausible deniability. I, for one, relish the coming GLOBAL SCHADENFREUDE MOMENT, one in which these rat bastards are finally cornered and have nothing between them and their doom. Banksters, meet the Grim Reaper.

    Any in Congress that wait too long to show their hand should share in the unpleasant outcome. Federal penitentiaries await. It couldn’t happen to a nastier bunch. What’s really sad about this whole deal is that there was plenty of really good money to be made honestly by all. But they had to screw it up by going the extreme greed route. Pity the bastards, but lock them all up just the same.

  20. Marie,

    All we need is to see the heads jailed. Companies are like fish: they rot from the head down… A large number of those heads came together, concocted this horrible mess, enriched themselves and brought our country down (with half of the world).

    That holds true for CEO’s of every single one of those banks, past and present, who held a position of authority at the time when the scam was being designed and during the whole time it ran. That also holds true for every managing attorney of every law firm involved in the concocting and the implementing of the sham.

    I don’t believe anyone can deny that their acts were intentional and guided exclusively by greed. No professional liability insurance policy and no Directors and Officers liability policy covers intentional acts. There was no negligence involved. Hence no coverage. When they are (finally) prosecuted, whatever gain they derived from the fraud can be confiscated, they have to pay for their own defense (insurance won’t even defend intentional acts) and… stolen money is redistributed where it belongs: people, infrastructures, education, jobs, etc.

  21. This should be interesting! Hope the whistle blowing starts. Is this a coverup? WOW!

  22. Seniorauth

    One of the reasons we are in this mess is you can’t put a company in jail

    Even if the Feds wanted to they would exhaust their presumably depleted resources trying to take this scheme apart and find the culprits. It’s too diffuse.

  23. Lps says

    “LPS has engaged in several discussions with AHMSI concerning the impact of the surrogate signing practice and has offered to reimburse AHMSI for fees and costs associated with AHMSI’s evaluation and re-recording of the remediated assignments of mortgage,” it said.

    What happens as in my case where the “foreclosure” and sale has already occurred and no “remediation” ( the euphemisms abound) occurred prior to foreclosure. Can they just paper over the robosignatures after the fact?

    Guess nothing will happen unless someone sues. The title company didn’t seem to care as the property sold

  24. Louise: I share your feelings of schadenfreude against these banksters. May they all implode. And implode SOON.

  25. Yep. The crabs clawing at each others… I believe I predicted it on this site a couple of months ago. And I believe we can all speed up that process by taking all our money out of every outfit which had one single finger in the pot and by stopping payment of all mortgages they underwrote or serviced. We would then see them literally devour each others and it wouldn’t take long for the whole building to crumble.

    A tad radical, maybe, but we can’t rebuild America on shaky foundation and we can’t have solid ones so long as those outfits are still in operation. What I called the Great American Clean Up. It might be very unsettling for a while but we’ve been unsettled anyway since the bailout. I was against it. I really felt that banks must be allowed to fail when they screw up and I didn’t understand the rationale behind the rush to rescue them. They played with fire, they burnt everyone and got burnt in the process. Tough S…!

  26. I can see old Wylbur Ross now …

    I’M SHOCKED! SHOCKED! I tell you … I never suspected a thing…

    Meanwhile LPS and AHMSI are holding robosigning parties in 2010 at AHMSI’s office with LPS employees as documented by Reuters…

    Wylbur’s just staking out a position to sue for damages when things get worse for his crooked outfit.

  27. Ironic that Ahmsi and DB managed to “foreclose” nonjudicially on my property using Linda green and tywanna thomas as vps of Ahmsi on the assignment courtesy of DOCX/lps They enjoyed selling my property several months later at less than half it’s value. Haven’t heard any apology from them yet.

    Don’t expect to of course

  28. They are starting to eat each other. I love that. AHMSI and the other servicers are all crooks. Everyone already knows that. They have no skin in the game. Why should they get a free house? I hope that enough lawsuits will cause a death by a thousand cuts. BofA’s stock is still going down, ha, ha!!

  29. No, No, NO. – there is no way the owner of the note and lien and the loan servicer can place this blame on the processing unit – who do you think gave the instructions which most surely were done under contract. Nope, the AHMSI SHOULD NOT BE ALLOWED TO GET A WAY WITH SUCH RIDICULOUS CLAIMS – ANY LOAN SERVICING MANAGER AND MANAGEMENT KNOWS BETTER THAN THAT. IF THEY USED THE DOC PROCESSING TO PREPARE THE DOCUMENTS THEN SOMEWHEERE ALONG THE LINE THEY WERE TOLD THEY COULD SIGN OFF ON BEHALF OF CORPORATE EMPLOYEES. THAT IS JUST STUPID AND IF THEY DID DO THAT THEN ASHMSI NEEDS TO BE SENT TO JAIL FOR ALL OF THE RECKLESS NEGLIGENT ACTIONS IN THE MANAGEMENT OF THESE FORECLOSURES.

    IT IS OKAY TO PREPRE THEM BY THE PROCESSING TEAMS, BUT SIGNING OFF BASED ON THEIR OWN DECISION TO DO SO JUST IS NOT RIGHT – I THINK I WILL GO ACROSS THE STREET AND TELL THT FAMILY OVER THERE THAT I AM GOING TO PREPARE AND EXECUTE AN ASSIGNMENT TO FORECLOSE ON HER HOME – IF THE FEDS AND AG’S BUY THAT WHICH THEY WON’T, THEY THEY NEED TO GO TO JAIL RIGHT ALONG WITH THE THE LENDERS AND THEIR SERVICERS. AND IF THEY DID NOT DO DUE DILIGENCE TO CHECK THE WORK OF THESE PEOPLE, THEN THAT JUST ADDS FUEL TO THE FIRE TO PUT AHMIS IN JAIL FOR RECKLESS MANAGEMENT OF OTHER PEOPLE’S MONEY. NOTHING LESS THAN SHEER THEFT OF ONE’S PROPERTY.

  30. […] See original article: Servicer Sues LPS-DOCX OVER ROBO-SIGNING — “SURROGATE SIGNING” […]

  31. Any research on REDC default solutions? B of A hired them to “help” with our short sale and I believe they used the documents we provided them to forge new notes.

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