Robo-Signing Suit Filed by Nevada AG
January 6, 2012
Catherine Cortez Masto, the Attorney General of the state of Nevada, on Friday announced that her office has filed a lawsuit against a loan processing company for supposedly engaging in misleading practices against consumers in Nevada.
However, the said business outfit, Lender Processing Services or LPS, claims that none of its clients have been adversely affected by any of its actions and it also said that its efforts in trying to cooperate with the investigation launched by the office of Masto was severely affected when the Nevada AG hired private attorneys.
The lawsuit was filed by the AG’s office on Thursday in the 8th Judicial District of Nevada. It claims that LPS took part in extensive document execution fraud, made misleading statements about its attempts to correct document fraud and had inappropriate control over foreclosure processes including foreclosure lawyers.
The lawsuit also alleges that the company made misrepresentations regarding its fees and services. It further claimed that LPS concentrated on speeding up the process, which prevented proper and essential focus on the accuracy and integrity in the foreclosure process.
Masto said, “The robo-signing crisis in Nevada has been fueled by two main problems: chaos and speed. We will protect the integrity of the foreclosure process. This lawsuit is the next, logical step in holding the key players in the foreclosure fraud crisis accountable.”
LPS stated that it tried to cooperate with the office of the AG during the investigation which lasted for 14 months.
“Unfortunately, the company’s efforts to engage in meaningful discussions with the Nevada Attorney General’s office have been frustrated by the Nevada Attorney General’s decision to outsource its investigation to Cohen Milstein Sellers & Toll PLLC, a plaintiff’s law firm located in Washington, D.C., in apparent violation of Nevada law,” said the company.