Bankruptcy Judge to Sanction LPS for Lying to Court over Foreclosures

Bankruptcy Judge to Sanction LPS for Lying to Court over Foreclosures


Bankruptcy Judge Elizabeth Magner ( A federal bankruptcy judge in New Orleans)  said that she will impose sanctions on Lender Processing Services, after concluding that the mortgage servicing company deliberately committed fraud on the court in a foreclosure case, by giving false testimony and submitting a "sham" affidavit, Reuters reported yesterday. Judge Magner's decision is the latest in a series of investigations and other legal actions involving Jacksonville, Fla.-based LPS for allegedly creating false documents for foreclosure cases and misrepresenting amounts homeowners actually owed. The judge granted a motion by the U.S. Trustee's Office for sanctions, and said that she would decide on financial and other penalties against LPS later, after holding a hearing. http://www.reuters.com/article/2011/04/13/financial-regulation-foreclosures-lps-idUSN1330259220110413