Wednesday, August 24, 2011

AHMSI sues LPS and DocX over robo-signing scandal

Lender Processing Services Inc. (LPS: 16.70 -4.41%) and its DocX affiliate caused American Home Mortgage Servicing Inc. to lose millions from the robo-signing of mortgage documents, a lawsuit filed Tuesday contends.


Coppell, Texas-based AHMSI filed suit in a Dallas district court against Jacksonville, Fla.-based LPS alleging more than 30,000 residential mortgages across the country were affected by "improper execution, notarization and recording of assignments of mortgage."

LPS could not immediately be reached for comment.

The lawsuit comes on the heels of AHMSI's unsuccessful attempt to recover its losses during more than a year of talks with LPS. AHMSI said the defendants first promised to indemnify AHMSI and then later claimed it had no duty to do so because the contract involved with the faulty assignments had already expired.

Read on.


No comments: