Mortgage servicers get subpoenas

Reuters News
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Posted: May 25, 2011 5:45 PM

NEW YORK (Reuters) - The attorneys general in California and Illinois have subpoenaed Lender Processing Services Inc, and Nationwide Title Clearing Inc as part of their probes into alleged "robosigning" practices in the mortgage servicing industry.

California Attorney General Kamala Harris said in a statement on Wednesday that her office had sent a subpoena to LPS. The Illinois Attorney General said she had issued subpoenas to both LPS and Nationwide Title Clearing Inc.

Robosigning is the term for the mass signing of documents used by banks or mortgage servicing companies when they try to foreclose on borrowers. Harris said the so-called robosigners did not read or understand the documents they signed.

"California homeowners have been exposed to fraud and crime at every step of the mortgage process," Harris said in a statement. "Justice demands we come to their aid and a key step in that is to investigate robosigning and the potential for inaccurate or unjust foreclosures."

Phone calls to LPS and Nationwide Title Clearing, both based in Florida, were not immediately returned.

(Reporting by Moira Herbst; Editing by Richard Chang)