Attention homeowners! Whether you're current or in default make sure to scrutinize your mortgage bank's math. As recent court testimony explains, there's a chance that the bank is wrong about how much you owe -- particularly if you're behind on payments.
A pension fund is suing foreclosure-services giant Lender Processing Services, a key player in the robo-signing mortgage mess, for fraud.
This week, the Congressional Oversight Panel recommended that the nation's big banks be stress tested again, because if problems with mortgage-backed securities are widespread, the consequences could be dire. Now, the Fed has agreed to run those tests, which it wouldn't do if it wasn't worried.
Depositions by three employees of Nationwide Title Clearing describe a factory-like process that's awful to look at. Nationwide defends the system as a standard industry practice, but much of it defies common sense.
That would be in California, Texas and 25 other states where the lender doesn't have to go to court to foreclose. Except in rare instances, lenders can use fraudulent paperwork with impunity in those states. A closer look at California and Texas shows that's indeed happening.
The Florida attorney general's office has subpoenaed Lender Processing Services, which handles many foreclosure documents, as part of its investigation into potentially flawed foreclosure paperwork.
Lender Processing Services plays a key role in the mortgage foreclosure process as a go-between for banks and lawyers handling foreclosures. But two class actions challenge how LPS and a similar firm do business. At stake: Potentially billions of dollars in attorney's fees.