In yet another limp-wristed attempt at law enforcement, the Department of inJustice, just declared that the massive nation-wide robosigning fraud is now ‘settled.’ Lender Processing Services agreed to pay $35 million to settle a federal criminal investigation into foreclosure fraud, the Justice Department said on Friday. Lender Processing Services, Inc. (LPS) is a leading provider of mortgage and consumer loan processing services, mortgage settlement services, default solutions and loan performance analytics, as well as solutions for the real estate industry, capital markets investors and government offices.
The settlement resolves allegations over LPS’s involvement in what the government called, “a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage documents in property recorders’ offices nationwide from 2003 to 2009.” This practice became widely known as robosigning.
The the settlement follows a guilty plea last November by Lorraine Brown, the former chief executive of the company’s now-closed DocX unit, to a felony charge of conspiracy to commit mail and wire fraud over the scheme. Apparently, Ms. Brown is being held up as the token criminal, despite literally hundreds of people being involved. I’m sure Bernie Madoff knows how she feels. She’s in jail while the actual creators and designers of this elaborate scheme continue to live their lives uninterrupted.
Prior to DocX’s closure in 2010, LPS had handled more than half of the nation’s foreclosures. There were literally thousands of people who lost their homes due to forged and fraudulent documents. What’s in some ways worse, is that there are still thousands of people in the country who are residing in homes where the loans for which they obtained funding are fraudulent. This calls into question ownership and legitimacy of their title! While the DOJ in it’s infinite wisdom calls this matter ‘settled,’ it most certainly is NOT for all of these people, some of whom may yet not even know they were victims. To all those people who in the future will find out that their title may be compromised, sorry, you’re out of luck too.
Lender Processing Services entered into a two-year non-prosecution agreement that requires it to meet certain conditions, including cooperating in federal investigations, and alerting the government to any abuses in mortgage or foreclosure documentation services at the company. Apparently, as long as they promise to police themselves, all will be forgiven. Foxes in charge of hen houses comes to mind. In what world are criminals trusted to do right by their victims? I guess only in DOJ’s little fraudulent world.
The biggest fraud being perpetrated here wasn’t done by Lender Processing Services, it’s the one being perpetrated by the Department of Justice on the American people. Fraud is a crime. A felony, to be exact. The DOJ has just told the country that certain special groups of people don’t get prosecuted for felonies, no matter how large or how widespread. YOU, dear American Citizen, are not in that special group. It is quite clear that the DOJ will not……
How long will the American people stand for this brand of ‘justice?’