Before we begin our Sermon this Sunday, a bit of history:

Think back to the giant fraud that was Enron. It was enabled — indeed, it was only possible — by the criminal behavior of their “Big Five” accounting firm, Arthur Andersen. This massive fraud perpetrated on the investing public was only possible due to the cooperation and active participation of their accountant, who were found guilty of “obstructing justice when it destroyed Enron Corp. documents while on notice of a federal investigation” charges. For this sin relating to their handling of Enron’s audits, Arthur Anderson was forced to “decertify,” voluntarily surrendering their license to be Certified Public Accountants in the United States. By voluntary, we mean they had no other choice.

Hence, for their complicity in the Enron scandal, Arthur Anderson was taken out back like Old Yeller and put down. Their senior officers and accountants scattered to the other major firms with their clients in tow. Even their consulting firm, Accenture, luckily lost the name Arthur Andersen Consulting in 2000, removed all visible signs of affiliation.

Once Andersen was de-certified from Accountancy,  AA was no more.

Today, we have what appears to be a parallel fraud: The processing of foreclosure documents by legal services giant Lender Processing Services. Thanks to the diligent worh of Attorneys General in states such as Nevada, New York, Delaware, California (but not Florida), we are starting to learn the extent of what took place under the auspices of LPS:

•  former L.P.S. employee who worked in “attorney management,” overseeing firms that performed legal work for foreclosures, told Nevada investigators that L.P.S. required him to resolve issues raised by the firms at a rate of 30 foreclosure files every hour (2 minutes per)

• Former workers described their work as “surrogate signers.” Their job was to forge signatures on documents.

• Other employees were hired through temp agencies, paid $11 an hour and told that her job was “to sign somebody else’s signature on documents,” the lawsuit said. Investigators were informed she signed roughly 2,000 documents a day for months — well over 100,000 foreclosure docs.

• Notarization was similarly dishonest, with workers notarizing documents (as a Notary) that they had fraudulently signed as a surrogate.

• Borrowers were confronted with documents containing “false assertions about which entity was authorized to foreclose, and false assertions about whether the consumer was delinquent on a loan payment.”

I have a question for Bank of America and Citi: Why haven’t you thrown these LPS weasels under the bus? What dirt they have on you preventing a simple j’accuse! ? What the hurry to settle before an investigation?

The end game for this is fairly obvious: Find the fuckers who authorized this, prosecute and convict them, and throw their sorry asses in jail. If the orders came from high enough up the food chain, why not pursue a similar Arthur Anderson penalty. Wat this broad corporate policy, or the work of a rogue banker? There is the answer to the death penalty question. After all, if a legal services firm is committing fraud, what bank or law firm can ever work with them? Depending upon the outcome of these AG investigations, a corporate death penalty could very well be the appropriate remedy.

This is going to get very interesting this year . . .

>

Source:
From East and West, Foreclosure Horror Stories
GRETCHEN MORGENSON
NYT, January 7, 2012 
http://www.nytimes.com/2012/01/08/business/mortgage-servicing-horror-stories-fair-game.html

Previously:
Why Foreclosure Fraud Is So Dangerous to Property Rights (October 12th, 2010)

Foreclosure Fraud: “Systemic, Industrywide, Pervasive” (October 16th, 2010)

Legal ‘Impossibilities’ & Foreclosure Errors (October 14th, 2010) see also Impossible’ Foreclosure: Never Late on a Payment (December 29th, 2010)

Banks Still Fabricating Docs, Commiting Foreclosure Fraud (September 1st, 2011)

Fraudclosure Errors Destroying Americans’ Property Rights (October 19th, 2011)

Banks Pressing for Foreclosure Settlement Before Investigation (November 23rd, 2011) see also Florida AG Takes Orders, Money from Fraudclosure Firm (October 12th, 2011)

Foreclosure Fraud For Dummies (Part One, Part Two, Part Three, and Part Four)

Even more links here

Category: Bailouts, Foreclosures, Legal

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

34 Responses to “Does Lender Processing Services Deserve the Corporate Death Penalty?”

  1. michael-D says:

    according to the self-appointed and currently reining monarch of cramerica, it would be wrong to do so to any of the big financials. after all, it would do too much harm to the economy, what with the lost jobs, and loss of confidence, and counter-party-risk, and so on. go after bad people, sure; go after bad companies? no way.

    i had to give this perspective some thought. after all, so many of us decry the notion that corporations are people. if they’re not people how would we justify meting out punishments intended for people, if we’re to deny them the rights of people?

    shame on us, i say, for allowing these cancers to grow so large; for allowing them to become bill black’s so-called SDIs.

    for the first time in a very long time i look forward to being cursed with very interesting times. i sincerely hope you’re right and that 2012 rises to meet the challenge. i’m afraid my doubts are terribly entrenched. TPTB are bound and determined to perpetuate fraud, rather than prosecute it.

    cheers

  2. DeDude says:

    In order to make the kind of profit that they “had” to make and also keep their prices low enough to keep half of the total market, they had no other choice. Keeping both share-holders and customers happy so you can reap in those huge bonuses really doesn’t leave you any space to be concerned about justice or legality. Thankfully, you can give those kind or orders to the underlings in private, so that nobody can prove your involvement and the blame can be pasted onto rouge employees. A few donations to the GOP so that the size of government can be reduced, then you won’t even have to worry about pesky prosecutors having time to investigate and drag you into court.

  3. carleric says:

    Gretcen Morgenson should be required reading for everyone…and the BP s well of course. Is it just me or does it seem like the only people interested in punishing the wrong doers are the states while the Federal Governemnt is hurrying to dismiss the case and sweep it all under the rug so the TBTF banks escape any real punishments?

  4. Sechel says:

    I’ve had this conversation with a number of my Wall Street buddies and I am struck by how the LPS story does not resonate. The conversation ends on the note that the borrowers who are behind deserve foreclosure. That the foreclosure may not have been legal is just a technicality.

  5. Sechel

    Have your buddies read the 2 articles on property rights:

    Why Foreclosure Fraud Is So Dangerous to Property Rights (October 12th, 2010)

    Foreclosure Fraud: “Systemic, Industrywide, Pervasive” (October 16th, 2010)

    Then get back to me

  6. bdw says:

    The county land records are a nice body of evidence to put any one involved in authorizing the signatures in jail. The problem for the rest of us is that there is no easy way to repair title to property. The AG’s shouldn’t stop until there is jail time – no SEC style nothing to see here because some money was paid and no one admitted they did anything wrong. MERS is privatization done under the guise of innovation that has destroyed the democratically controlled list of who own property – a bad cancer that need some people in jail to stop its spread and then another round to begin to cure.

    http://deadlyclear.wordpress.com/2011/11/04/the-remics-have-failed-the-remics-ha\
    ve-failed/

  7. constantnormal says:

    BR is a foolishly naive optimist … the chain of the compromised and the complicit runs up through the financial industry, into the Congress and on into the White House.

    Perhaps a sacrificial lamb will be selected (it IS an election year) to be sacrificed and thrown to the wolves in our media arena, but there will be no significant prosecutions (let alone convictions), and no significant reforms or changes in the way things work at all.

    A century from now, if there are Bananamerican historians, they will write of these times as being comparable to the days of Tammany Hall and Boss Tweed …

  8. Constant Normal:

    ahhhh, but that is why I addressed the issue of FRAUD as a cause of the crisis to all 50 State Attorney’s Generals, including the ones who are suing LPS.

    See: Follow the Money: How Systemic Bank Fraud Contributed to the Financial Crisis

  9. NoKidding says:

    Anyone who has refinanced in the last 10 years knows what was going on in that story, so lets not make it into a big phoney scandal. When I got my rate reduced last year a man came to my house and my wife and I signed an hour and a half worth of papers. It was for a 3/4 point reduction on a plain vanilla 30-year home mortgage at low LTV refinance for a middle-aged couple with high credit ratings and no other debt. A good amount of the papers were government mandated forms requiring me to sign off that I’d read other government mandated forms that I’d already signed.

    I only required one document with about ten points. Non recourse; fixed rate; no early pay penalty; verified payment amount; servicer name; notice mortgage would be resold… a few other details. If the lender had provided that one sheet, I would want to do exactly what the evil LPS did- hire some stooge to shuffle the rest of the paper for about 14 bucks.

    ~~~

    BR: This has nothing to do with refis — its about processing foreclosure docs, engaging in fraud, and perjury.

    FAIL

  10. Petey Wheatstraw says:

    I agree with constantnormal — nothing significant will be done against the major perpetrators, corporate or individual (if that is even still a distinction), of the crime wave that destroyed the foundations of our Republic.

    As I have harped about repeatedly, the financial and political crimes committed over the past decade are blatant and obvious. Even the intent of the perpetrators (a key element of determining criminality), could be easily proven beyond a reasonable doubt. Although SarbOx puts the captains of these crime syndicates on record as knowing what was taking place within their enterprise(s) — making tracking responsibility that much easier — it’s useless without enforcement (even without SarbOx, the legal standard of “. . . knew, OR SHOULD HAVE KNOWN,” would be sufficient to indict, prosecute, and convict a great number of these F’ing felons).

    Instead, we will have goats.

    If we have learned one thing from all of this, it’s that the law means nothing. Selective enforcement is worse than no enforcement at all.

  11. janchup says:

    What the matter with you people? You heard Obama on 60 Minutes: “No laws were broken.” Ever. Damnit. How else to explain that not one single FBI Agent was asked or ordered to investigate anyone or anything? No laws were broken. Why call in the FBI? Why get DOJ involved? No laws were broken.

    Seriously, there can be no one else behind the cover-up of the vast frauds besides Obama and Geithner, who told him what he had to do. I always think Geithner’s real motivation for the cover-up is to keep the totally shitty job he did as NY Fed chief obscured. Obama? He just did what he was told to do.

    Do you think Mitt Romney will go after the fraudsters? No? Oh…the statutes of limitations are almost expired. That’s really the whole other point of the cover-up: make the frauds moot.

  12. constantnormal says:

    All they have to do is to stall for a year or two longer, and the statures of limitations will likely erase prosecutor attentions, even from the most diligent among them (a set that does NOT include Eric Holder).

  13. Jim67545 says:

    This is a case of corporate indifference. They flushed the problem (defective titles) down the timeline. Same as the company that dumps toxic waste in a river rather than treat it or the manufacturer who sells defective merchandise. They should pay.

    Someone said that corporations should not be allowed to contribute to campaigns as “persons” until they can vote and be subject to capital punishment. If BR has his way we’ll be down to voting.

  14. Bob is still unemployed   says:

    @Sechel = …The conversation ends on the note that the borrowers who are behind deserve foreclosure….

    What about those who were foreclosed out of their home when they did not even have a mortgage?

    The shotgun approach used to foreclose was illegal, irresponsible and unethical. Yup, that sounds like the banks….

  15. Bob is still unemployed   says:

    @Sechel

    I didn’t mean to make it look as if the part of your message I quoted was your opinion. I realize you were just quoting someone else’s comments.

    Apologies for the ambiguity.

  16. Blurtman says:

    Not trying to bash blogs, but Calculated Risk constantly represents LPS as a credible source of mortgage and foreclosure statistics and information. In that sense, the blog is a passive enabler and also part of the problem.

    ~~~

    BR: Analytics is typically a different division of any firm than Legal or Compliance. LPS does process half the nations foreclosures — their database is extensive. Its the judgment and decision making here that is under fire — not their math . . .

  17. Bob is still unemployed   says:

    @Jim67545 – …Someone said that corporations should not be allowed to contribute to campaigns as “persons” until they can vote and be subject to capital punishment….

    Perhaps we should approach corporate crime in the way the Chinese do.

  18. DeDude says:

    If Obama run against Romney it would almost be a given to include a certain amount of anti-corporation into the campaign – that would also help energize the base of the democratic party. Just like Fannie and Freddy leaders were a perfect target, LPS will be an even more obvious target. They are not a big company and by putting the blame on them the big systemically important banks get a bit of a brake. I would be surprised if “Hold’er” doesn’t release the brakes and go after LPS before the end of the summer.

  19. related..

    http://globaleconomicanalysis.blogspot.com/2012/01/fed-to-announce-monetary-penalties-for.html

    “…”My take on things is it is all about managing the press,” said James Cox, a professor at Duke Law School. The agency “looked pretty silly before Judge Rakoff the other day,” he said…”

  20. readerOfTeaLeaves says:

    I hope this is going to be an interesting year, because if it isn’t then I figure both capitalism and property rights will be deader than doorknobs before 2013.

    ————————–
    Great link to that slideshow given the AG’s in April 2011 – of special note:
    – In 1952, mortgages were 16% of GDP. By 2003, they were 66%.
    – By 2004, securitization expanded beyond mortgages and RMBS to CDOs — the very year that the FBI was being ignored as it raised the alarms about rampant mortgage fraud.
    – (slide 19) the Homebuilders were on a binge, building more housing than the economy could afford.
    ———-

    I have known of situations where people literally were loading guns over property boundary disputes — humans, being mammals, are territorial after all is said and done. Consequently, I view the rampant lawlessness as extremely dangerous; it would be safer for everyone to slam some of these asshats in prison, rather than the aimless, hopeless ambiance of utter lawlessness we’re stuck with at present.

    It has long seemed that the Bush-Cheney-GOP-BlueDogDem ideologues used housing as a way to goose up ‘employment’ and economic stats. That was cynical and short sighted, but clearly they weren’t going to mess with that 66% of GDP in 2003, and they barely got out of DC before it imploded in 2008. If they’d enforced the laws, I suspect their economic data would have looked mighty grim because much of the data seems to have been based on liar’s loans and mortgage churning.

    Without property rights, I don’t see any future for capitalism.
    But without legal enforcement, I don’t see any property rights.

  21. [...] Ritholtz offers this summary of just some of the abuses of LPS (Lender Processing Services): [...]

  22. Default_JMP says:

    This is not a few random bad apples. The culture is a grind house. Everyone is focused on the foreclosure mess, that is only what people can see. There is 80% more going on behind the scenes before the foreclosure– to pre foreclosure inspections, government paperwork delivery, vacancy inspections, reconveyance maintenance, REO sales etc.
    They find clients by promising significant discount to HUD pricing, hire young people to work in high stress environments at low pay (like the girl in the article) contract with local/regional contractors and inspections companies in the field to provide services for their clients. The last few years have seen field prices stagnate even as the HUD prices have risen and HUD requirements have risen.
    LPS and a few others enjoy a monopsony position based on the huge volume of business they control.
    How would this industry fare if large blocks of MBS they are servicing(or not as the case may be) are sold off to investors?

  23. philipat says:

    Completely agree. Where ARE the Rgulators and WHY do we have Sarbanes-Oxley?

    Of course,the aspect of Enron which lives on isOff Balance Sheet accounting. Why oh why can Banks STILL disguise bad assets via SIV’s, SPV’s etc?

    The other aspect of all the property issues is that given there was no (Lawful) registration with the local County and that the Deed may have changed hands multiple times, do property owners actually know where the title deed is and, more importantly perhaps, will they be able to receive it when the Mortgage is paid down? I have a feeling that MERS/Robosigning is a gift that will keep on giving for decades to come.

  24. uzer says:

    “Does Lender Processing Services Deserve the Corporate Death Penalty?”

    Yes, if it furthers the ongoing cover-up of the most egregious, most pernicious, most systemic financial fraud of anyone’s lifetime.

  25. philipat says:

    PS. Barry, have you changed the cencorship policies or did you “Uncensor” your own post just for you?

  26. Andy T says:

    I’m only mentioning this because you brought up Arthur Anderson so much here…that AA was actually found NOT GUILTY by the highest court in the land.

    Not that it matters much at this level of discourse.

    ~~~

    BR: To be precise, the Supreme Court overturned the Arthur Andersen verdict, not on a basis of guilt or innocence, but on the the technical jury instructions used by the District Court; Normally, such a case would have been remanded for retrial, but with Andersen no longer, it was an irrelevancy.

    As to the “level of discourse,” YOU have got to be kidding.

  27. Jim67545 says:

    The comments relating to lenders foreclosing on the wrong property seem to assume that some half-trained clerk is launching these foreclosures. In fact, if a mistake like this is made it is made by someone providing legal services to the lender (either in-house legal counsel or, more likely, local legal counsel.)

    One of the first steps in a foreclosure is to do a title update to verify that documents are properly recorded, to verify ownership (in case the homeowner conveyed the home to someone else without paying off the mortgage), to verify legal address and legal description, to see if there are any other liens and their priority (the holders of any liens legally must to be notified), and what taxes or other assessments are due. This work is done either by an attorney or a title clerk with attorney oversight.

    In the course of this process, unless some grevious mistake is made, the identity and address of the property owner is matched to the foreclosure documents and any discrepancy halts the process – or should. The high degree of accuracy in this process is why, despite millions of foreclosures, we hear about only a couple dozen cases of false foreclosure.

    Of course, if an attorney working for a bank makes a mistake the responsibility ultimately lies with the bank which hired him. In the process of resolving this, no doubt the attorney’s errors and omissions insurance coverage would come into play or the attorney would pay for the damages out of pocket if he does not wish to have an E&O claim.

    ~~~

    BR: Exactly the point — these are not good faith errors by a dumb clerk, but rather willful fraud on the part of the servicers and the banks they work for.

    When you robosign 200 foreclosures an hour, rather than spend a 100 hours verifying the info, you are subverting the process. And when you submit a notarized statement to a court claiming you actually did verify the info, when you did no such thing, y9ou are committing perjury.

  28. manycats says:

    I’m a long-time lurker and first-time poster here. I read this story through the link at 4closurefraud. Here is another interesting story that falls in line with this one:

    “Nationwide Title Clearing (NTC) Helps Homeowners and Borrowers by Identifying Cloud on Title of Properties
    Mortgage Post-Closing Services Provider NTC Applies Document-Tracking and Land Records Expertise to Safeguard against Mortgage Document Errors thereby Helping Property Owners/ Borrowers ”

    http://www.prweb.com/releases/2012/1/prweb9085677.htm

    Oh, the irony. How is NTC going to “clean” the title mess – channel L. Ron Hubbard as a robo-signer?

  29. lizinsarasota says:

    From your post back in October:
    AG Bondi has been criticized by Florida lawyers for accepting campaign contributions from companies the AG’s office is investigating.

    Barry, if I may? Let’s review:
    Lender Processing Services’ “work product” – fraudulent affidavits – have been called a “sham” and a “farce” by the US Bankruptcy Court of the Eastern District of Louisiana (In re Wilson).
    Bill McCollum, former Florida Attorney General, started an investigation into numerous foreclosure mills, affidavit mills, and other foreclosure-related businesses accused of fraud. McCollum was defeated in the Republican primary by Pam Bondi.
    Shortly after taking office, Bondi fired the top two lawyers investigation foreclosure fraud, apparently following complaints by the lawyers for a target of the investigation, Lender Processing Services, that they were too “aggressive.”
    After the attorneys were fired, it came out that the week before the firings, a senior AG staffer, Jerome W. Jacquot, took a position as governmental liaison with Lender Processing Services.
    After the firings, it came out that Bondi took campaign contributions from THREE companies CURRENTLY under investigation by her office for foreclosure fraud-related activities, Lender Processing Services, Provest, and the Law Offices of Daniel Consuegra. Lender Processing Services donated directly to Bondi’s campaign through LPS, its subsidiaries/affiliates, its in-house counsel, and at least one attorney employed by its in-house counsel. Members of Provest’s senior management, including its founder and CEO, as well as an executive vice president’s WIFE, contributed to Bondi’s campaign. The foreclosure mill law offices of Daniel Consuegra contributed through its attorney.
    Bondi asked Jeff Atwater, Florida’s CFO, to conduct an “independent” investigation into the firings. Turns out Atwater received contributions from no fewer than TEN LPS-affiliated companies during his most recent campaign; big fundraisers for Atwater were Bondi contributors as well.

    Pam Bondi took thousands of dollars in campaign contributions from Lender Processing Services, its affiliates/subsidiaries (Fidelity Financial, etc.), its in-house counsel (Holland & Knight) and members of its in-house counsel staff. At least one member of Lender Processing Services’ board is a former member of H&K – his name is Todd Johnson.
    Nathan A. Adams, member of Holland & Knight’s Tampa office, gave money to both Pam Bondi and Bill McCollum (former FL AG).
    Contributions directly related to LPS:

    Fidelity National Financial (Atwater, 3/1/07; Bondi, 10/18/2010)
    Fidelity National Title Co. of California (Atwater, 3/1/07)
    Fidelity National Title Insurance Co. (Atwater, 3/1/07)
    Fidelity National Title Co. of NY (Atwater, 3/1/07)
    Fidelity National Financial Inc. – FLA PAC (Bondi, 10/18/2010, 3/31/2010)
    Fidelity Asset Management (Bondi, 6/23/2010)
    First American Title Insurance Co. (Atwater, 11/19/07) now affiliated w/ Fidelity
    National Title Insurance
    Chicago Title Co. (Atwater, 3/1/07)
    Chicago Title Insurance Co. (Atwater, 3/1/07)
    Chicago Title & Trust (Bondi, 6/23/2010, 10/18/2010)

    Alamo Title Holding Co. (Atwater, 3/1/07; Bondi, 10/18/2010)
    Alamo Title Holding Co. (Bondi, 6/23/2010)

    LSI Title Agency Inc., Irving, TX (Bondi, 10/18/2010)

    Lender Processing Services (Bondi, 6/23/2010)
    LPS Agency Sales & Posting (Bondi, 2010)

    Atwater got three donations from registered Fidelity lobbyists.
    a) Fiorentino + Hewitt 03/01/2007
    b) Fiorentino Group 9/23/2008
    c) Martin J. Fiorentino, Jr. 03/01/2007
    He also received two contributions from Black & Meenan, one from Philip Black and one from Black & Meenan – Timothy Meenan is a registered lobbyist for Fidelity.

    Bondi also took a contribution from Timothy Meenan, a registered lobbyist for Fidelity National Financialand Black & Meenan, Timothy Meenan’s law firm.

    LPS-related contributors:
    Joseph Jacquot – former Bondi staffer, now working for LPS, donated to Bondi’s campaign
    Atwater: Title Industry of Florida PAC (their homepage advertises LPS)

    Holland & Knight (LPS’ in-house counsel) donated to both Bondi and Atwater

    Florida Bankers Association (trying to hurry through foreclosures) Bondi: 6/22/2010, 10/26/2010, Atwater: 03/06/2008

    So, now you know. This is why she’s not investigating. It’s a little thing called quid pro quo.

  30. chunga says:

    Yes, LPS, should be drawn and quartered.

    How many people realize that one of LPS’ subidiaries “Aptitude Solutions” develops the software that many Clerk’s of Court use for their foreclosure records? That really blows.

    This Federal Court Order (Jan. 5, 2012) seems very important to me.

    The Playing Field Has Been Leveled

    If you read the Judge’s Order a couple of things stand out.

    “Order the appearance of any persons necessary to settle any claims…”.

    “Order the appearance of any persons necessary to settle any claims completely and or order the appearance of any non-parties, including but not limited to municipal and other government officials and lien holders, that may be essential for a total resolution of the claims;”.

    Ok…so if this were simply a matter of failing to dot “i’s” and cross “t’s” will these alleged lenders be allowed to file Motions for Protective Order like they always do?

    Doing so makes it look like they trying to hide something.

    I think what they are hiding is the fact that third parties via CDS have made them whole (mainly bailout bed-mate AIG); something they CAN legally do not more than once twice, not less than once never, but once. That, my friends, IS what they are hiding.

    It has happened to you – whether in default or not. Your grand-children will be paying it back…and no; they won’t be bailed out or receive a bonus.

    The rubber will meet the road when the time comes to insure the title.

    This Order effects hundreds of cases directly and potentially many, many more. It’s my understanding that these wonderful bankers are quite eager to “settle” lest they suffer the lash of Trial by Jury. They love leverage but HATE being leveraged.

    I have it on good word that a state Senator has the balls to call out Fannie and Freddie execs. I’ll be back tomorrow with the press release.

  31. chunga says:

    As promised…

    For Immediate Release FROM Senator Bethany Moura [R-RI] Jan. 10, 2012

    $nip>

    Senator Moura goes on to question the logic behind turning down homeowners who want to repay their loans under revised terms, but are denied and foreclosed on. “Fannie and/or Freddie take an enormous loss up-front and elect to do so.” For her, the alarms went off when Freddie Mac recently asked Congress for $124 Billion dollars. Moura says, “I believe they are intentionally creating these huge losses in mortgage defaults so they can justify on paper their requests for hundreds of billions in taxpayer money. The longer they take to review modification applications, the further behind the homeowners end up, the higher the arrearage gets, the larger the investor loss appears, therefore making a modification that much harder to qualify for. The perfect storm has been created.”

    Senator Moura has actively fought for this to stop. She communicates with the Department of the U.S. Treasury Office of the Comptroller of Currency and the policy advisors of the FHFA (oversees Fannie and Freddie). She has met with Senate leadership, the Governor and his policy staff, as well as fellow legislators. “In fact, I’m working on forming a bi-partisan coalition with legislators in both chambers to stop this from continuing in our state”, Moura says. “My intent is to enact change any way that I can, and am committed to being a resource for leadership in the General Assembly. I’ve seen the devastation first-hand, and had my own experience with a dishonest loan servicer and a foreclosure. It’s a battle I’m still fighting, but have turned my frustration and experience into motivation.”


    Moura states, “Watching them beat families into submission, to eventually surrender their homes is something you have to see to believe. They rip families and communities apart, destroy property values, and leave in their wake a sea of emotional wreckage that cannot be measured. It is unbelievably cruel and despicable.”

    This first-term Senator is so confident in her suspicions, she’s challenging the top executives of Fannie Mae and Freddie Mac to appear in Rhode Island in a public forum to defend her allegations – head on and face-to-face. Her message to them is simple. “Bring your attorneys and your staff, and I’ll have my notes, files and homeowners from Westerly to Woonsocket. Since you believe you are entitled to their money, I believe they are entitled to your answers”, declares Moura. “In this arena, I am a force to be reckoned with. Whether this fight takes a day or a decade, I will not retreat. They can bank on it (pun intended).”

    $nip>

    I love this girl! Go baby go!

  32. [...] this week, we discussed whether Lender Processing Services deserved the “Corporate Death Penalty“.  You can see all of our prior LPS discussions are [...]

  33. [...] Department of Justice and 49 state AGs, the 5 largest banks using the MERS system, along with LPS (Lender Processing Services) and DocX cousins, are simply guilty of some bad judgement and we should all just agree to cut [...]