(Reuters) - A federal bankruptcy judge in New Orleans said 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.
The opinion, obtained this week by Reuters, was issued April 7 by Judge Elizabeth Magner.
Her decision is the latest in a series of investigations and other legal actions involving Jacksonville, Florida-based LPS for allegedly creating false documents for foreclosure cases and misrepresenting amounts homeowners actually owed.
LPS handles many routine mortgage servicing tasks, including filing and overseeing foreclosures, for banks.
The judge granted a motion by the U.S. Trustee's Office for sanctions, and said she would decide on financial and other penalties against LPS later, after holding a hearing.
Her opinion in the bankruptcy of Ron and LaRhonda Wilson, also sharply criticized the entire mortgage servicing industry.
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