Lender Processing Services, the subject of a 60 Minutes segment about foreclosure document fraud, has added “new document integrity management capabilities” to the software it markets to loan servicers.
According to a recent company newsletter, LPS consulted with servicers in late 2010 “to understand the nuances of the ‘personal knowledge’ standard, including process steps and needed proof at the conclusion of an affidavit of indebtedness review that all steps have been followed in compliance with internal policies and procedures.”
In countless foreclosure cases, attorneys have argued that Docx, a defunct subsidiary of LPS, used so-called robo-signers to sign sworn affidavits claiming they had “personal knowledge” of a foreclosure case, often without reviewing the documents.
One former employee told a 60 Minutes reporter that he signed the name of a co-worker, Linda Green, as fast as he could on thousands of documents. A notary who formerly worked for LPS said she was told to notarize documents without witnessing the signature.
The company’s updated software includes questions that the person signing the affidavit must answer “to ensure the proper level of review has been completed,” according to the newsletter. If the questions are not answered correctly, “LPS Desktop passes the affidavit to another queue for additional review.”
The updated software also can create an audit trail “attesting to one’s due diligence leading to the notarized affidavit.”
Rod Hatfield, managing director of LPS’ Enterprise Content Management division, was quoted in the newsletter: “Now servicers can quickly and uniformly spot and reconcile inconsistencies between documents and data, and stand up to regulatory scrutiny with a procedural audit trail.”
LPS, which bills itself as the nation’s largest provider of mortgage processing services, declined to comment on its software upgrades or the allegations in the 60 Minutes segments.