Suit Filed In Robo-Signing Scandal
DALLAS – American Home Mortgage Servicing filed suit in state court here against Lender Processing Services, Inc., alleging the firm improperly signed mortgage documents on its behalf and triggered millions of dollars in legal expenses as a result.
American Home Mortgage Servicing said in the lawsuit it had incorrectly processed more than 30,000 mortgage assignments when seeking foreclosure on properties in all 50 states as a result of the work by an LPS subsidiary. The suit seeks unspecified damages worth millions of dollars. LPS, based in Jacksonville, Fla., does business with many of the nation’s largest mortgage servicers. In 2009, LPS shuttered the DocX LLC unit that was responsible for preparing mortgage filings after allegations surfaced that it had fabricated signatures and documents.
American Home, based in Coppell, Texas, and a unit of WL Ross & Co., does not make loans but instead handles the day-to-day management of mortgages on behalf of investors in mortgage-backed securities. It is the 15th-largest mortgage servicer and manages $72.5 billion in mortgages.