Civil Robo-Signing Lawsuit Settled for $2.5M

Allison Tussey —  January 31, 2013 — 3 Comments

Lender Processing Services, Inc., and its now defunct subsidiary DocX, a document processing company located in Georgia, settled a robo-signing civil lawsuit for $2.5 million.

In November 2012, the former president of DocX, Lorraine Brown, was criminally charged with racketeering for her alleged role in authorizing the fraudulent signing of mortgage documents filed in Michigan. The felony charge against Brown and the civil settlement are the result of an investigation into questionable mortgage documents filed with Michigan’s Register of Deeds offices during the foreclosure crisis.

In April 2011, an investigation was launched after county officials across the state reported that they suspected Assignment of Mortgage documents filed in their offices may have been forged. A”60 Minutes” news broadcast had shown that the name “Linda Green” was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting. County officials in Michigan reviewed their files and found similar documents, thus raising questions about the authenticity of the documents filed.

In his investigation, documents prepared by DocX and filed in Michigan were reviewed. DocX processed mortgage assignments and lien releases for residential lenders and servicers nationwide. The investigation revealed that former DocX president Lorraine Brown allegedly orchestrated a widespread scheme in which employees were directed to forge signatures on mortgage documents in order to execute these documents as quickly as possible, producing increased profits for DocX. Internally, DocX identified this practice as facsimile signing or surrogate signing. The investigation revealed that more than 1,000 unauthorized and improperly executed documents were filed with county registers of deeds throughout Michigan.

In light of the findings of the investigation, Brown was criminally charged on November 26, 2012 with one count of Conducting Criminal Enterprises (Racketeering), a 20-year felony, in Kent County’s 61st District Court. A criminal charge is merely an accusation, and the defendants are presumed innocent unless proven guilty.

LPS suspended DocX‘s operations in 2010, halting its work as a mortgage document processor. The $2.5 million settlement, which includes DocX, its parent company, Lender Processing Services, Inc., and another LPS subsidiary, LPS Default Solutions, was filed in Ingham County Circuit Court. The settlement amount is based upon estimated earnings generated from the alleged illegal conduct related to documents filed in Michigan, in addition to obligations to correct improperly executed documents when possible and take other remedial and preventative action. Additionally, the settlement includes requirements aimed at preventing such conduct from recurring, requirements to correct documents when possible, and requirements to provide consumer support.

Michigan Attorney General Bill Schuette announced the settlement.

LPS will make a toll-free hotline available for consumers who have questions about any mortgage documentation filed by DocX, and the telephone number will be posted on Schuette’s website once the hotline goes live. Consumers can check back at www.michigan.gov/mortgagesettlement for more information.

“Shortcuts like robo-signing are just one example of the damage caused by the mortgage foreclosure crisis,” said Schuette. “Our investigation into questionable mortgage practices remains ongoing, and we will bring to justice every lawbreaker we find.”

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3 responses to Civil Robo-Signing Lawsuit Settled for $2.5M

  1. My question, is my deed void? if it was rob-signed?

  2. What about Andrew Harmon from Harmon Law Offices in Newton, MA. He was like the MA version of attorney David Stern of FLA. Andrew was actually on the Board of Directors. I could resume my life if I lost my home because we were under water but the fact that I lost my home illegally and still paid $35,000 to prove but had a corrupt Judge who ignored the preponderance of evidence & the Facts of Law is like getting a life sentence. The only difference is I am not serving the time in Jail but my life, finances & health have been affected. MA state officials just pass the buck when they are presented with the proof. I devoted my life to doing for others and our son is a front line combat Marine Veteran who returned home from his 2nd deployment to find out the only home he ever knew was gone. To see how this has affected our sons is heart breaking and the PTSD only makes matters worse. I was so naive to think that proof & truth would set you free. Boy was I wrong.

    • I am so sorry to hear what happened to you with your home and the addition of “the insult to injury” with either a corrupt, unknowledgeable and or incompitent lawyer and judge?!
      Unfortunately, I have heard of this happening times too numerous to count. Fortunately there has been much research done, mostly by intelligent “victims” since the whole “mortgage crisis” debacle took place.
      This crisis was engineered in such a way so that it would take a lawyer or “victims” with extensive knowledge of banking, investing AND real estate law to not only expose it but to also be able to defend the victims of it!
      If interested in having more info would be glad to share. We are only victims as long as the truth remains hidden!

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