Hurry! Contact your Attorney General about the LPS Consent Judgement NOW!!

Review from The West Coast Foreclosure Show with Charles Marshall: The LPS Consent Judgement and the Power of FOIA Requests broadcast on August 24, 2017.

Note: This is not legal advice but for educational purposes only.  Hire an attorney.

On Thursday’s West Coast Foreclosure show, Eric Mains, a former FDIC team leader, and investigator Bill Paatalo joined California attorney Charles Marshall on his West Coast Foreclosure Show that is broadcast twice monthly on behalf of Neil Garfield.   Eric Mains originally introduced the FOIA LPS concept during the August 3, 2017 broadcast here.

Mains urged listeners to immediately contact their state AG offices in order to obtain information about the LPS/Black Knight consent judgement and to demand answers why LPS is not in compliance with the judgement.  The information you discover may allow you to file suit on a prior foreclosure, or provide an opportunity to obtain information that will help you in current litigation.

The government estimates that 80% of all foreclosures processed by LPS between 2008 and 2010 had defects and that LPS interfered with the attorney-client (servicer) relationship in order to foreclose quickly and illegally.  The servicers and their attorneys are aware of the judgement and cannot claim that they didn’t know that robosigning was occurring- it is spelled out in the consent judgement.  What does this mean to the homeowner who has been illegally foreclosed upon with fraudulent documents manufactured by LPS?

If you are impacted by an attorney or servicer (or both) that utilized the LPS’s services, including its software system, you should file an FOIA request with your state’s attorney general.   You can contact your state AG’s office by phone, mail or email.  The cost of an FOIA is typically around five-dollars.

In your letter, you should request specific information to include:

  1. Has your office been receiving quarterly compliance reports as required in the consent judgement?
  2. How many people in the state were impacted by LPS’s illegal practices to include fabricated notes and assignments, forged documents or unreliable documents created for the purpose of foreclosing?
  3. What percentage of the funds the state received from the consent judgement have been used to help citizens of the state? Please provide a distribution report of the allocation of these funds.
  4. Request copies of all quarterly reports and correspondence.
  5. How did the individual servicers comply with the consent judgement? What were their duties to comply?
  6. If you accepted money from the settlement, why was no follow-up done on the consent judgement to confirm that servicers and their attorneys were in compliance?
  7. Why are these fabricated documents still polluting the public records of this state?
  8. Will future homebuyers be vulnerable if they discover their title is clouded by a prior fraudulent note, assignment, endorsement or allonge that was not remediated?

An example of the initial letter Eric Mains sent to the Indiana Attorney General’s office can be found here: FOIA Request AG’s Office.  Please edit the document and insert information relevant to your state and your needs.  The DEADLINE to submit FOIAs regarding the consent judgement is January 31, 2018- so time is of the essence!

LPS/Black Knight was ordered to remediate forgeries and assignments and to notify people affected by the robosigning of documents.  There is no indication this has been done.  Although Linda Green was the most famous robosigner at LPS, and her signature was used on millions of documents, LPS employed hundreds of robosigners who were forging signatures on fabricated documents. It is likely your loan documents may have been created by LPS.  Attorney Charles Marshall recommends that everyone read the Lynn Symoniak lawsuit against LPS to understand exactly how LPS operated between 2008 and 2013.

According to Marshall, attorneys who, “blatantly went in front of a judge with forged documents that should have been remediated and proceeded with the foreclosure anyways” are guilty of fraudulent behavior and recommends that homeowners should discuss this matter with an attorney even if they no longer have their home.

LPS/BlackKnight retained the attorney network used by the loan servicers.  The attorneys had certain rights and responsibilities and most likely knew soon after working with the LPS network that they were using fabricated and forged documents, and even after the consent judgement continued using documents to foreclose that had not been remediated per the consent judgement, and should have been.

FOIA requests provide a unique opportunity to access documents that have already been identified as problematic by federal regulatory agencies.  Not only that, the LPS consent judgement was signed by all 50 state attorney generals.  Homeowners should unite and demand to know why the remediations were not carried through, if attorneys continued to use fraudulent documents to foreclose, how the money received was distributed, and why the lenders failed to file quarterly reports regarding their compliance with the judgement on a quarterly basis.

 

There is a potential Pandora’s Box to be opened since 80% of all foreclosures between 2008 and 2010 (and perhaps longer) utilized fabricated LPS documents that were never remediated.  There were literally hundreds of thousands of wrongful foreclosures completed with fraudulent documents that pollute the county records.

 

LPS retained attorneys for its network from 2008 until 2013 when they were forced to stop the practice.  There is a good chance that the law firm who processed your foreclosure lawsuit used LPS’s illegal foreclosure services.  The consent judgement states that LPS was too involved in the outcome of attorneys in their network, and this resulted in obstruction.  You may have a private cause of action including fraud on the court if LPS “assisted” with a signature or your foreclosure involved an unauthorized signer.

 

Most Attorney Generals took the money and ran. This is a public policy nightmare that has not been resolved.   LPS paid the financial penalties to the state AG offices, but it appears it  made no effort to remediate the fabricated documents,  file quarterly reports, and perhaps may not have altered their operating policies as required by the judgement.  Only by demanding information via FOIA requests will light be shed on LPS’s overall compliance.

 

Investigator Bill Paatalo, who is an expert on foreclosure matters, sheds some light on how LPS BlackKnight operated.  LPS planned regional territories throughout the United States.  They then went around the country targeting law firms that would be a good fit for their proprietary foreclosure platform.  LPS would receive requests from loan servicers who wanted a foreclosure attorney referral.  LPS played matchmaker between servicer and and LPS network attorney.

 

One of LPS’s primary metrics was grading their attorney networks on how fast they could foreclose.  Firms that were top performing foreclosure mills received acknowledgement of their performance in the LPS newsletters (see an example here: LPS Newsletter October 2007)- and may have even received performance incentives in cash, trips, etc.….

If you were harmed by a servicer or its attorney, it is recommended that you immediately start demanding information about the LPS consent judgment.  There are 50 state attorney generals who should be bombarded with FOIA requests while the window is still open.  Homeowners should then share notes and make efforts to hold their state AG offices accountable.

There are approximately 2 million fraudulent documents in the public record that don’t appear to have been remediated by LPS.  Although LPS was to issue corrective assignments- there is no proof this was done.  YOU have until JANUARY 31, 2018 to get your FOIA requests rolling.  Time is of the essence!  Call the media, your state representatives and anyone you can think of to demand that your state AG comply with the consent judgement.  If you suspect you lost your home to fraudulent LPS docs or that the servicer’s attorney used fraudulent documents in litigation- you may have a private cause of action.  In most states you have at least 3 years to sue for Fraud once you discover the fraud.

CONTACT YOUR AG TODAY AND PLEASE SHARE YOUR FINDINGS WITH OTHER HOMEOWNERS, STATE REPRESENTATIVES AND FEDERAL AGENCIES- AND DEMAND THAT LPS/BLACKKNIGHT REMEDIATE, REPORT and demonstrate COMPLIANCE.

Again- here is a simple FOIA letter you can edit and send to your state Attorney General (thank you to Eric Mains for providing this template): FOIA Request AG’s Office.

For additional information please see these blog articles:

https://livinglies.wordpress.com/tag/lps-consent-judgement/

 

17 Responses

  1. Any thing going on with MTGLQ and Shellpoint ? Or is it New Penn or Resurgent ? and the Global settlement ? Shellpoint is withdrawing their license in many states and are still getting away with foreclosing.

  2. Neidermeyer. Good. Let’s see what rest of us get.

  3. *************
    Got a Reply from Florida … excerpt below
    *************

    We are circulating your request within our office in an effort to locate the other information that you are requesting. Please note that we are currently experiencing a large volume of requests.

    This letter will serve as acknowledgement of your request and notification that we will be in touch with you as soon as we determine if a record exists that is responsive to your request. Please note that there may be a fee for copying and review involved in the production of these records. In the event that you have any additional questions, feel free to contact our office at (850) 414-3634.

    Sincerely,

    s/ Nicholas J. Weilhammer
    Nicholas J. Weilhammer

  4. @Rhody:
    The September 2006 edition of the FIS Foreclosure Solutions “The Summit” shows Specialized Loan Servicing as new client for two products or services, FNFS (Fidelity National Foreclosure Solutions) and NewTrack,

    https://www.scribd.com/document/40542251/FIS-Foreclosure-Solutions-the-Summit-Sep-2006

  5. You have to see if any past documents were executed by LPS or any affiliates.

  6. Thanks ANON. Will this apply to Specialized Loan Servicing LLC in some way? We have a pending litigation.

  7. Would this pertain to me I’m 7 years into foreclosure litigation or fraud closure ..I’m aBaum case Pillar Processing

  8. I found the complete edition of the LPS newsletter mentioned in the post. (The link in the post goes to a two-page version.)
    The full newsletter is here:
    https://www.scribd.com/document/49948458/Lender-Processing-Services-f-k-a-FIS-newsletter-The-Summit-Oct-2007

    I was pleased to see that Residential Credit Solutions was mentioned as a new client for the “Outsource/Desktop” software product.

    Oh, look, IndyMac too, soon to become OneWest under “foreclosure king” and current Secretary of the Treasury, Steve Mnuchin.

    CLIENTS
    FIS Desktop Franklin Credit
    FIS Desktop Fremont
    FIS Desktop Litton Loan Servicing

    Outsource/Desktop CENLAR
    Outsource/Desktop Countrywide
    Outsource/Desktop Indymac
    Outsource/Desktop Residential Credit Solutions

    FIRMS
    AR Baxter and Schwartz PC
    AZ Folks & O’Connor, PLLC
    AZ/NV/OR Law Offices of Les Zieve [I recognize this name. Zieve is now very active in California, too]
    UT/WA/CA Curtis Law Group
    FL Jonathan Kilne,
    PA/FL/PA Joseph H Ganguzza & Associates
    GA Albertelli & Halsema, PLL
    GA Flanagan & Ireland
    KS Gallas & Schultz
    MA/NH/RI Orlans Moran LLC
    NH/VT Law Offices of Jonathan F. Weidman
    OH Gerner & Kearns Co., LPA
    SC Bolen Law Firm
    TN McCurdy & Candler
    VT Jeffrey Kosterich & Associates, PC

    In the Dec 2007 newsletter, which is here:

    The new clients listed are:

    FIS Desktop Avelo Mortgage
    FIS Desktop EMC Bankruptcy
    FIS Desktop Carrington Mortgage Services
    FIS Desktop Home Loan Services

    FNFS Marix Mortgage
    FNFS PHH Mortgage

    FIRMS
    AL Albertelli Law
    CA/NV Aztec Foreclosure Corp
    CA Old Republic Default Management Services
    CA Solomon Grindle Silverman & Spinella
    CT/DC/ McCabe, Weisberg and Conway
    MD/VADC/VA Curran & O’Sullivan,
    PCFL Phillips, Flynn, Dareneau
    GA Moore & Associates
    GA Shuping, Morse & Ross
    KY Reynolds & Thompson, LLP
    LA Foreclosure Law Firm, LLC
    MN Elizabeth Mason, PC
    NJ/PA Stern & Eisenberg, LLP
    NY Ziccardi & Rella PC
    OK Luper, Neidenthal and Logan
    SC Riley Rope & Laney
    WV Law Office of Kevin D Moffat

    Throughout both issues, other servicers and law firms are named.

  9. FLORIDA EDIT
    ********************

    08/25/2017

    Pam Bondi
    Office of Attorney General
    State of Florida
    The Capitol PL-01
    Tallahassee, FL 32399-1050

    Pam Bondi ,

    Under the 119.01(1) Access to Public Records Act § 5-14-3-1 et seq., I am requesting an opportunity to inspect or obtain copies of public records that pertain to the Consent Judgment entered into by your office and Lender Processing Services, Inc., LPS Default Solutions, Inc., and DOCX, LLC in January 2013. The requested information is in the public interest and will contribute significantly to the public’s understanding of the terms and compliance with that consent judgment.

    Please provide me with any communications and documentation your office has related to the violations of Florida Deceptive and Unfair Trade Practices Act
    and the Florida Home Loan Protection Act 501.201 , and any other conduct or violations of Florida laws which your office identified that were potentially causing harm to Florida consumers, which formed or was used as the basis for the consent judgment entered into above.

    Please provide any communications and documentation related to the identity and activity of the those employed or contracted by the signatories to the consent judgment (LPS, DOCX) who were found to have participated in (or potentially participated in) the covered conduct as outlined in the consent judgment. This activity included, but is not limited to, practices related to mortgage default servicing, including document creation, preparation, execution, recordation, and notarization practices as they relate to Mortgage Loan Documents as well as any communications and documentation relating LPS relationship with attorneys representing the servicers and other third parties.

    Please provide me with any communications and documentation your office holds in relation to the follow-up and enforcement with the terms of the consent judgment, including, but not limited to, third party reports, reports done for/or provided to your office/ in relation to ongoing compliance with the terms of the consent judgment.

    Please provide me with any communications and documentation in relation to the Florida consumers that LPS and its subsidiaries provided compensation to, and remediation for, in regard to its activities covered under the consent judgment, and any reports outlining its compliance with providing relief to consumers as provided by the consent judgment.

    The information requested above is not being sought for commercial purposes.

    Please contact me with information about when I might expect copies or the ability to inspect the requested records.

    If you deny any or all of this request, please cite each specific exemption you feel justifies the refusal to release the information and notify me of the appeal procedures available to me under the law.

    Thank you for considering my request.

    Sincerely,

  10. Lender Processing Services n/k/a Black Knight

  11. What is LPS?

  12. Not if our Texas AG is being indicted for fraud!!! And his buddy Governor, equally fraudulent has this state wrapped since 2011. Texas Banking Association is fraud, Texas servicing Forum, who is responsible for all the thousands of falsified sub trustee BS….we have 254 counties in this state and the joke is we have 254 ways for them to screw each one. The AG’s cut a deal and stole the money, quietly and smoothed it all over for the banks to segway right on over…millions.
    Judges are making so much money…paleeese. We need to re-establish our common law courts and boot EVERYONE else aside.

  13. My counterclaim was dismissed and I lost 2 partial summary judgments BASED ON AN LPS DOCUMENT. So OK….I’ll bite. I will participate in this massive effort and complain to my AG who has not been of any assistance to me here in Washington State. But then what? I have multiple violations after false documents after lies upon lies (under oath in federal and civil courts) after every immoral and illegal act of deception overflowing from my “Bank of UnAmerica”. I have so many ways I can beat these cruel ass-wipes but there are no lawyers in this State who are going to help me (and believe me…I’ve done my due diligence in searching for representation) and I am living proof that going Pro Se will get you eaten alive.

    You are right Mr. Garfield! About what’s going on and why you are absolutely right. You are right about what we need to do in court, as a community and as an American Citizen of the United States of America. I’m willing to do it all. But none of this works with out the lawyers and they are M. F*cking. I. A.! For GOD’s Sake I can’t even get the state employees at the courthouse who’s jobs I PAY FOR to DO THEIR JOBS and adhere to the the laws, statutes, rules written to remove the stray Lis Pendens from my property that any 5-year old would be able to proclaim a serious no.

    If you, any of your fellow supporters or followers know where the secret stash of lawyers who aren’t afraid to stand and fight like me can be found..please share because we’re losing our battle up here which is bullshit to a homeowner one of if not the most equity rich areas in the country.

  14. Yes. Everyone should do this. LPS involved one way or another in most. I will try again in my state . We need Trump support.

  15. Well been there done that and you simply cannot trust one of them here in wa since they don’t necessarily advocate for the homeowner and their attitude is if you aren’t paying your mortgage I’ll be the bank and you can pay me to stall it out

    Sent from my iPhone

    >

  16. As I keep saying, we have to complain en masse. This is great! Get on it warriors.

  17. Mine wants no part of it. Tried that

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