Posts Tagged ‘ Lender Processing Services Inc. (LPS) ’

LPS Settles Federal Mortgage Fraud Inquiry for $35M

LPS Settles Federal Mortgage Fraud Inquiry for $35M

02/15/2013 BY: ESTHER CHO

Lender Processing Services Inc. (LPS) agreed to pay $35 million to resolve criminal fraud violations involving fraudulently signed and notarized mortgage documents, the Justice Department announced Friday.

LPS entered into a non-prosecution agreement with the department and the U.S. Attorney’s Office for the Middle District of Florida. Through the settlement, LPS announced it will pay $20 million to the United States Marshals Service and $15 million to Treasury.

The agreement also requires the company to meet a series of other conditions.

The department stated LPS has already taken a number of remedial actions to address the misconduct at DocX, a wholly owned subsidiary of LPS, and has wound down all the subsidiary’s operations and re-executed and re-filed mortgage assignments as necessary.

The settlement follows guilty pleas from Lorraine Brown, the former CEO/president of DocX. In November, Brown pled guilty to conspiracy to commit mail and wire fraud in federal court in Florida and entered a plea deal in Missouri. Michigan attorney general Bill Schuette also brought charges against Brown and recently announced the former CEO pled guilty to racketeering.

The Justice Department statement explained that over a 6-year period ending in 2009, employees of DocX falsified signatures on mortgage-related documents. Brown and others at DocX were accused of directing authorized signers to allow unauthorized staff to sign and have documents notarized in order to increase profits.

The announcement follows a $127 million multistate settlement in January to resolve “robo-signing” allegations.

In a statement, Hugh Harris, LPS president and CEO, said, “[t]he conclusion of the Justice Department’s inquiry is another positive step for LPS.”

“Coupled with recent settlements with multiple state attorneys general, as well as other litigation, LPS has effectively dealt with its legacy issues related to past business practices and is squarely focused on delivering leading technology-driven solutions to enable the mortgage industry to meet its new requirements,” Harris added.



LPS and KMCIS Partner on Foreclosure Processing System

LPS and KMCIS Partner on Foreclosure Processing System

10/28/2013 BY: CARRIE BAY

Lender Processing Services, Inc. (LPS) and KMC Information Systems (KMCIS) announced Friday that the two firms have teamed up to create an end-to-end foreclosure processing solution for loan servicers.

LPS is a Jacksonville, Florida-based technology, data, and analytics firm that provides default servicing solutions to the mortgage and real estate industries. KMC equips law firms and trustees with case management and integration technology and is headquartered in St. Louis, Missouri.

The companies plan to integrate certain LPS technologies with KMCIS’ CaseAware platform to improve the efficiency and transparency of foreclosure processing, they explained.

“LPS has a rich history and a proven track record of delivering technology that enhances processing efficiency for our clients while helping to manage compliance with state, regulatory, and investor requirements,” said Bob Caruso, executive managing director of LPS Transaction Services. “This improved connectivity between CaseAware

and LPS will provide greater confidence to all the constituents involved in the foreclosure process and help meet each of their specific needs and requirements.”

LPS already delivers technologies that address enterprise workflow, title work orders, invoicing, and other critical functions that help servicers, attorneys, and trustees reduce expenses and increase operational efficiencies. The company’s flagship loan servicing system is used to service 50 percent of the nation’s mortgages by dollar volume.

KMCIS’ CaseAware platform provides law firms and trustees with a configurable case management system which can be quickly modified to conform business processes to changes in regulations, client service level agreements (SLAs), or investor requirements, all without programmer intervention. More than 100 law firms and trustees across the country utilize CaseAware as their operating system of record.

“The enhanced integration of these technologies will be extremely beneficial to all parties involved in the foreclosure process through greater data integrity, and move those involved toward the goals of single point of entry and less FTE [full-time employee] cost for law firms,” said Wes Kozeny of KMCIS.

Kozeny says servicers will benefit from an increased focus by their law firms on managing legal, regulatory, and client- and investor-specific requirements; the law firms will spend less time managing data exchanges and focus more on process management; and the borrower will see greater levels of process integrity and transparency.

“Beyond that, all parties will benefit from the entire process, from referral to resolution, by having a single electronic trail,” Kozeny added.

Home Prices in Texas, Colorado Hit New Highs in June

Home Prices in Texas, Colorado Hit New Highs in June

08/26/2013 BY: ESTHER CHO

As national home prices recover, Texas and Colorado are already busy setting new highs, data from Lender Processing Services, Inc. (LPS) revealed.

In June, national home prices rose to $229,000, representing a 1.2 percent gain from May, and a sharp 8.4 percent increase from a year ago, according to LPS’ Home Price Index (HPI). When compared to the index’s 2005 peak of $270,000, prices are still down 15.2 percent.

However, Colorado and Texas moved ahead of the national trend and hit new highs of $256,000 and $182,000, respectively.

On the other hand, California saw a 19.6 percent annual jump in prices, but remains 26.3 percent below its peak. Arizona also saw a significant increase over the last year in June. Prices in the state rose 13.9 percent, but are 32.8 percent away from the peak value.

Out of the 40 large metro areas LPS tracks, three in Texas reached new highs: Austin ($237,000), Dallas ($182,000), and Houston ($181,000). Denver also established a new high-water mark of $265,000.

At the same time, San Antonio is just 0.3 percent below its August 2007 peak, while Honolulu sits 2.1 percent below its 2007 peak.

Overall, nearly half, or 19, of the 40 large metro areas experienced double-digit annual gains, LPS reported.

Las Vegas led with a 27 percent increase, followed by San Francisco (+23.9 percent), Sacramento (+23.9 percent), San Jose (+20.1 percent) and Riverside, CA (+19.8 percent).

When factoring in distressed sales, LPS found short sales sold for a discount of 25 percent, while REOs were marked down by 26 percent. Discounts varied greatly by state, with Nevada seeing REO discounts of only 8 percent compared to 36 in New York.

LPS: Home Prices Climb 2.9% from January to March

LPS: Home Prices Climb 2.9% from January to March


In its latest reading on home values, Lender Processing Services, Inc. (LPS) reported strong price gains in March and increases in every state and metro the data provider tracks.

In dollar terms, the LPS Home Price Index (HPI) averaged $213,000 in March. The figure represents a 1.4 percent increase from February and a 7.6 percent improvement from March 2012. From January of this year to March, prices have climbed 2.9 percent.

However, national prices remain 19.5 percent below their June 2006 peak. According to LPS, Texas has already returned to its peak level, while Colorado sits just 0.7 percent below its 2007 peak.

Out of the 20 largest states LPS tracks, Georgia posted the biggest gain from February to March, rising 2.6 percent,

followed by Nevada (+2.4 percent), Washington D.C. (+2.1 percent), Washington (+2.1 percent), and Illinois (2.1 percent).

None of the states observed for the month showed price declines, but the states that brought in the smallest gains were Rhode Island, Tennessee, Pennsylvania, Vermont, Oklahoma, and Texas, where price increases ranged from 0.6 percent to 0.7 percent.

After analyzing 40 of the largest metro areas, LPS reported the markets that experienced the largest monthly price gains were San Jose (+3 percent), Atlanta (+2.6 percent), Las Vegas (+2.6 percent), San Francisco (+2.3 percent), and Deltona, Florida (+2.3 percent).

Despite the strong month-over-month gain, Las Vegas is 49 percent below its 2006 peak.

The bottom metro for March was Memphis, where price rose by just 0.2 percent. Prices increased by 0.4 percent for the remaining metros in the bottom five: York, Pennsylvania; Chattanooga, Tennessee; Harrisburg, Pennsylvania; and San Antonio.

For distressed sale prices, LPS data revealed short sales tend to be priced 25 percent below non-distressed properties, while REOs are sold at a discount of 26 percent.

In Nevada, REOs are discounted by just 9 percent, while in New York and New Jersey, the price reductions are much steeper, at 40 and 35 percent, respectively.

Among the largest states, short sale discounts were the biggest in New York, at 35 percent, and the smallest in Texas, where the discount rate averaged 17 percent.

LPS: Delinquency Rate Slips to Lowest Level Since 2008

LPS: Delinquency Rate Slips to Lowest Level Since 2008

05/22/2013 BY: ESTHER CHO

Month-end mortgage performance data in April continued to point to a recovery as delinquency and foreclosure rates posted record improvements, Lender Processing Services, Inc. (LPS) reported Wednesday.

In April, the delinquency rate (30-plus delinquencies, excluding foreclosures) sunk below 6.5 percent for the first time since July 2008, according to the data provider.

At 6.21 percent, the delinquency rate recorded a month-over-month decrease of 5.81 percent and a year-over-year decline of 9.61 percent.

The foreclosure pre-sale inventory rate, which stood at 3.17 percent in April, fell 5.83 percent from March and plunged 24.55 percent from a year ago.

At the same time, the total number of past due mortgages slipped even further below the 5 million mark to 4.7 million, LPS data revealed.

Of that figure, 3.1 million properties are past due but not in foreclosure, while 1.6 million are in foreclosure inventory.

Florida continued to lead as the state with the highest percentage of non-current loans (delinquencies and foreclosures), followed by New Jersey, Mississippi, Nevada, and New York. The five states with the lowest percentage of non-current loans were Montana, Wyoming, Alaska, South Dakota, and North Dakota.

Delinquency Rate Slides Under 7% in February: LPS

Delinquency Rate Slides Under 7% in February: LPS

03/26/2013 BY: ESTHER CHO

The mortgage delinquency rate in February slipped below 7 percent, according data from Lender Processing Services, Inc. (LPS).

On Tuesday, LPS provided an early look at month-end mortgage performance data for February and found the delinquency rate is at 6.80 percent, down 3.16 percent from January’s 7.03 percent and a decrease of 6.51 percent from February 2012.

At the same time, the foreclosure pre-sale inventory rate averaged 3.38 percent, which represents a 0.98 percent month-over-month decline and a 19.58 percent decrease year-over-year.

The number of mortgages that are at least 30 days delinquent or in foreclosure totaled 5.1 million in February, down from 5.2 million properties in January.

Of the 5.1 million unpaid mortgages, 3.4 million were 30 or more days past due but not yet in foreclosure, while the number of loans in foreclosure inventory stood at 1.7 million.

LPS extracts data from its loan-level database, which represents approximately 70 percent of the overall market.

The data and analytics firm also revealed the five states with highest percentage of past due loans were Florida, New Jersey, Mississippi, Nevada, and New York. The states with the lowest percentage of unpaid mortgages were Montana, Alaska, Wyoming, South Dakota, and North Dakota.

Ex-President of DocX Pleads Guilty to Racketeering

Ex-President of DocX Pleads Guilty to Racketeering


Months after filing a felony charge against Lorraine Brown, Michigan attorney general Bill Schuette announced the former DocX president has pleaded guilty to racketeering for her alleged role in the company’s fraudulent signing practices.

According to a release from Schuette’s office, Brown pleaded guilty to one count of conducting criminal enterprises—a 20-year felony—before Kent County Circuit Court Judge Mark Trusock. She will return for sentencing on May 2.

“Shortcuts like robo-signing are just one part of the mortgage foreclosure crisis,” Schuette said. “The message here is clear—if you break the law, there are consequences. We will continue to prosecute criminals who target and exploit Michigan homeowners.”

The plea brings to a close an investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis. Schuette opened the investigation in April 2011 after a news broadcast revealed that the name “Linda Green” was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting. County officials across Michigan reviewed their files and found similar documents.

As part of the investigation, Schuette’s office reviewed documents filed in the state and prepared by DocX, a now-defunct processing company that processed assignments and lien releases for lenders and servicers nationwide. The investigation revealed that Brown allegedly established and orchestrated a widespread scheme of fraudulent document signing in order to speed up processing. Schuette alleges this practice continued under Brown’s supervision from 2006 through 2009.

In addition to the criminal charge brought against Brown, Schuette announced January a $2.5 million civil settlement with Lender Processing Services, Inc. (LPS), DocX’s parent company. The settlement funds will go to the state, and affected customers will have their documents corrected by LPS.


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