Chaos and speed fueled the robo-signing scandal, says Nevada AG while suing LPS

Catherine Cortez Masto Nevada Attorney General sued Lender Processing Services, claiming that LPS used deceptive practices against their Nevada consumers, as the documents submitted to support foreclosure proceedings were fraudulent.

The lawsuit filed by Nevada AG surprised the LPS, entity which recently made public that their proceedings are following the state’s law and their company is no target of any investigation. This announcement came after six LPS employees faced indictment over robo-signing practices.

LPS quickly replied to Masto’s announcement in its surprise saying that it strongly disputes Masto’s claims, and they have been fully cooperative with the Nevada Attorney General’s office for more than one year, since the robo-signing scandal surfaced.

On the other hand the LPS claims that their effort to enter into serious discussions with the state attorney general was frustrated by Masto’s decision to ask a Washington-based law firm to do the investigation. LPS alleges this is against the state’s law.

While the LPS stated publicly they are no target of Nevada AG investigation, Masto’s office said they took the time and effort to take under their loop LPS’s loans in foreclosure.

Their investigation found that the company falsified and forged foreclosure documents, notarizations and key signatures. The lawsuit filed against LPS says LPS imposed arbitrary deadlines to foreclosure attorneys, blocked communication between the foreclosure lawyer and their client, and misrepresented kickback fees for referred foreclosure cases, saying these are attorney fees. Court documents highlight that the LPS practically set up a Miami-like rocket-docket, requiring their employees to execute and notarize up to 4,000 foreclosure documents per day.

When filing the lawsuit against LPS, Masto said that two main problems fueled the robo-signing crisis: chaos and speed. She went on an said: after investigation this lawsuit filed against LPS is the next logical step in holding accountable those players who triggered the foreclosure crisis.