The following is an excerpt from a recent press release from Lender Processing Services, Inc.
- Lender Processing Services, Inc. (LPS)(1) is a leading provider of integrated technology and services to the mortgage industry. [...] Approximately 50 percent of all U.S. mortgages are serviced using LPS's Mortgage Servicing Package (MSP). In fact, many of the nation's top servicers rely on MSP, including eight of the top 10 and 14 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries.
Go here for the Lender Processing Services press release.
For more on Lender Processing Services, Inc., see:
- Bloomberg News: Lender Processing Falls 29% on Report of Inquiry (A ruling by Judge Diane Weiss Sigmund in U.S. Bankruptcy Court in Philadelphia questioned inaccurate court filings made by HSBC Mortgage Corp. in a personal bankruptcy case. HSBC relied on electronic information from an LPS system that manages foreclosure data),
- The Wall Street Journal: DOJ Probing Mortgage Data Processing Firms (The Department of Justice is conducting a nationwide probe of the company whose automated systems handle half the mortgages in the U.S., looking for evidence Lender Processing Services Inc. (LPS) has "improperly directed" the actions of lawyers in bankruptcy court) (may require subscription; if no subscription, try here, then click link for the story).
The use of these types of data processing systems in the context of filing foreclosure actions was the target of a scathing ruling (at page 58) in a recent Federal bankruptcy case in which the judge made this observation (among others):
- The thoughtless mechanical employment of computer·driven models and communications to inexpensively traverse the path to foreclosure offends the integrity of our American bankruptcy system. It is for those involved(2) in the process to step back and assess how they can fulfill their professional obligations and responsibly reap the benefits of technology. Nothing less should be tolerated.
For the court ruling, see In re Niles C. & Angela J. Taylor (Case No. 07-15385-DWS, Bankr. E.D. Pa., April 15, 2009).
The use of company employees to act as "multiple corporate hat-wearing dummy vice presidents" for the various lenders and loan servicing companies using these data processing systems when initiating foreclosure actions has also been the focus of some controversy. Go here for more on multiple corporate hat wearing dummy vice presidents.
(1) On July 2, 2008, LPS was spun-off from Fidelity National Information Services, Inc. through a tax free distribution of all of its shares to Fidelity shareholders. Form 10-Q for Lender Processing Services, Inc. http:/biz.yahoo.com/e/080813/lps10-q.html.
(2) This footnote is not from the court ruling. Reference here is being made to the assembly line, foreclosure mill law firms and their employees who, in my view, willfully blind themselves to the practices of the foreclosing lenders that they represent, and otherwise allow themselves to be roped in and used by their clients as mere lackeys in the foreclosure process. SloppyForeclosuresAlpha