Nevada AG files lawsuit against Lender Processing Services
Las Vegs, NV (KTNV) -- The Nevada Attorney General has filed a lawsuit against Lender Processing Services for engaging in deceptive practices against Nevada consumers.
The lawsuit was filed yesterday in the 8th Judicial District of Nevada following an extensive investigation of LPS default servicing of residential mortgages in Nevada, specifically loans in foreclosure.
The lawsuit alleges widespread document execution fraud, deceptive statements made by LPS about efforts to correct fraud, improper control over foreclosure attorneys and the foreclosure process, mispresentations of fees and services, and evidence of an overall press for speed and volume that interferred with accuracy and integrity of foreclosure process.
LPS' misconduct was confirmed through testimony of former employees, interviews of servicers and other other industry players, and document review.
LPS is the nation's largest provider of default mortgage services, processing more than 50 percent of all foreclosures annually.
The office of the Nevada AG recently indicted two other people as part of a separate, criminal investigation into the conduct of robo-signing scheme which resulted in the filing of tens of thousands of fradulent documents with the Clark County Recorder's Office between 2005 and 2008.