Lender Processing Services (LPS) has issued a statement in response to what the company calls recent mischaracterizations in the media regarding the default-related services LPS provides to lenders and servicers. The company points specifically to concerns that have focused on foreclosure issues related to the execution of affidavits and the preparation of assignments of mortgage.
LPS says it has not executed affidavits containing substantive borrower information on behalf of its lender/servicer clients since September 2008. Attorneys working on behalf of lenders and servicers would prepare affidavits and provide them to LPS, which then executed the affidavits under corporate resolution, LPS says.
‘LPS had processes in place to ensure the information in the affidavits was validated and that the affidavits were signed properly,’ LPS says in the statement.
In reference to assignments of mortgage, LPS has made previous statements regarding its document preparation subsidiary, Docx LLC, which prepared assignments of mortgage for two lenders/servicers between 2008 and 2009. Docx did not prepare or execute affidavits containing substantive borrower information and no longer provides document preparation services, LPS says.
‘During its operation, when lenders/servicers or their attorneys requested that Docx prepare an assignment of mortgage, the lenders/servicers or their attorneys provided the necessary borrower information, which was downloaded by Docx employees into a pre-approved document template,’ LPS explains. ‘The document was then printed and either signed by the lender/servicer or Docx, pursuant to corporate resolution. Docx did not determine whether these documents were then used in a court proceeding – those decisions were made solely by the lenders/servicers or their attorneys.’
Docx was named in an investigation by Florida State Attorney General Bill McCollum earlier this year. According to a statement from McCollum at the time, Docx prepared assignments ‘that to even the untrained eye, appear to be forged and/or fabricated, as the signatures of the same individual vary wildly from document to document.’
LPS says the varying signature styles resulted from a decision made by the manager of Docx to allow an employee to sign an authorized employee's name with his or her express written consent. The company says it was unaware of this practice and that, upon learning of it, LPS immediately took remedial actions to correct all affected assignments.
SOURCE: Lender Processing Services