Mandelman on LPS, DJSP Ent. & Altisource – Nina Easton’s HOT Stocks for Homeowners Losing Homes

Via: Mandelman Matters

(Only in America… Nina Easton.  More on that in a moment.)

The New York Post is reporting that a new gold rush is sweeping the country and it’s all about… are you ready for this… “people looking to get fat off of the $4 billion home foreclosure industry”.

Apparently, in the last two years four companies have either gone public or are about to go public, and each is looking to raise the cash they need to become a “national powerhouse” in the business of providing “streamlined and low-cost methods” for kicking people out of their homes.

According to the Post, “there are currently 6 million homeowners 60 days or more delinquent on their mortgage,” which makes these companies very attractive to investors.

These companies, DJSP Enterprises, whose revenues have increased by 31% over the last year, Altisource Portfolio Solutions, with its 182 percent increase in profits last year, and of course, Lender Processing Services, a company with $2.4 billion in revenue up 29 percent last year — all offer technology linking lenders with law firms in order to reduce the cost and streamline the process of foreclosing on homes and evicting their ex-owners.

Oh, and let’s not forget Prommis Solutions, which turned a $7.9 million profit in 2009 and has filed to go public.

Now, Lender Processing Services is the parent company of DocX, a company that one of the companies under investigation by the Florida Attorney General’s office for being in the business of creating fraudulent documents used in foreclosure proceedings when the servicer doesn’t have any paperwork showing that the trust actually holds the mortgage.

But, LPS doesn’t seem terribly concerned about that investigation, or any of the others that threaten to expose this company for wrongdoing.  They say it’s all just a mix-up… funny story, that sort of thing.  Here’s the company’s CEO on May 20th:

LPS’ CEO Jeffrey Carbiener said “our earnings are quality earnings. They translate into cash flow.  LPS generated $349 million in cash last year.”

LPS provides all levels of mortgage default services services for when a loan goes bad.  “Because we have a strong business model, we’re able to weather economic challenges,” Carbiener said.  LPS’s growth is continuing into 2010, with first-quarter revenue up 11.8 percent and adjusted earnings up 26.5 percent.

“We’ve had good success and we expect that success to continue into the future,” Carbiener said.

These types of companies get fees from the lenders on each property, and from the law firms that file the foreclosure actions. So, their prospectuses warn investors:

“A turnaround in the housing market or additional mortgage-modification plans from Washington may negatively impact our profits.”

Well, there’s not much to worry about in either of those regards, at this point anyway.  But, I suppose there is always the risk that there could be an outbreak of competence in Washington.  Still… I’d probably go long at this point.

As long as our economy continues to sink into an abyss, any of these companies is poised to become the next Microsoft, but God forbid our elected representatives actually figure something out and we start to see stabilization in the housing market, leading to a real recovery, well… better sell these stocks short and fast, ‘cause the better things get the worse they’ll do.

The whole thing got me to thinking… this must be awfully confusing to John Paulsen and the guys at Goldman.  They want to short the housing market in every possible way, but to do that in this case, they have to go long.  I’ll bet some traders have become dizzy and maybe even passed out just thinking about that.

A Goldman Trader: “What do I do again?  I need 3.5 million shares short… no, long… no, short… no, damnit!”

So, if you’re a homeowner at risk of losing your home to foreclosure, or even if you’re not looking at foreclosure, but just can’t stand the thought of watching another hundred grand in equity go up in smoke, I have some important investment advice for 2010 and 2011 that you’ll want to hear.

Why not consider strategically defaulting on your underwater mortgage in order to start dollar cost averaging into this brand new and exciting offering:

Nina Easton’s

Empty Homes Hi-Yield Bond Fund

To learn more about Nina’s role in the foreclosure crisis, click where her name appears in orange above.

The fund’s objective is to acquire significant positions in bonds issued by growth companies that are positioned to capitalize on the emerging and exciting multi-billion dollar foreclosure industry.  The fund’s investment strategy focuses on:

  • Technologies that enable faster, high-quality document forgeries.
  • Property preservation companies that throw people out first time, every time.
  • Title insurance companies that don’t care who owns the property.
  • Lock-Box and REO-FOR-SALE sign manufacturers.
  • Home auction companies.
  • Firms that lobby on behalf of the banking industry.
  • And, of course, the makers of Xanax and Ativan.

People, this is a once in a lifetime investment opportunity to place a bet on our growing foreclosure industry, supported by the total and ongoing incompetence of our government!  And that’s not all…

In order to hedge your position in Nina’s Empty Homes Hi-Yield Bond Fund, or for those of you who think the administration and other branches government may at some point actually start getting something right, I’m also working on getting the Obama Administration to agree to be a counterparty in credit default swaps related to certificate holders in Nina Easton’s Empty Homes Hi-Yield Bond Fund.

Nothing is definite at this point, but I think it’s important that dumb money be able to short our multi-billion dollar foreclosure industry, so for those that think the foreclosure crisis will be ending soon, stand by because my soon to be available Obama Competence Credit Default Swaps should be available soon.  That’s right, you can sell the foreclosure industry short when you invest in Obama Competence Credit Default Swaps.

Plenty of Upside Remaining…

Some have said…

“But Nina… we’ve already lost 7 million homes to foreclosure.  Haven’t I already missed out on my chance to profit from this exciting opportunity?”

No, no… silly human… there’s plenty of upside remaining in the foreclosure market.  Housing prices are still in a free fall, foreclosures are still coming in at over 300,000 a month, and we’re on the fifteenth straight month at those levels.

There are 6 million people more than 60 days delinquent on their mortgages right now, and Goldman Sachs forecasts 14 million more foreclosures in the next five years!  And don’t forget… the good news is that the ALT-A and Option ARM loans that haven’t even started adjusting yet!

Unemployment?  Fuggetaboutit!  I mean, no one is even trying to fix that anymore!  We’ve got more people unemployed for more than 30 weeks than since before I was born, and at this point our only strategy is to report made up numbers generated by the Bureau of Labor Statistics.  I think it’s pretty safe to say that it’s all downhill from here!

So, worry not.  It’s not at all too late for you to get involved and make your fortune in the fast-paced and exciting foreclosure industry, because there’s plenty of upside left in the American foreclosure market.  Let’s see the Chinese beat us at this!  No chance… they won’t even try.

And the people trying to stop this foreclosure thing… please.  Here’s what Nina Easton wrote in her blog about a demonstration near her home:

Now this event would accurately be called a “protest”; if it were taking place at, say, a bank or the U.S. Capitol. But when hundreds of loud and angry strangers are descending on your family, your children, and your home, a more apt description of this assemblage would be ‘mob.’

You tell ‘em Nina!

Others ask…

“Nina, I heard HAMP was doing better at modifying loans lately.  Is this something I should be concerned about?”

I wouldn’t be the least bit concerned, and here’s why…

First of all, you’d have to believe that the government’s program will actually continue to show improvement, and at this point, there’s very little evidence upon which to base that sort of assumption.

As of right now, there have been about the same number of homeowners kicked out of HAMP as have received permanent modifications, and don’t forget there are still more than 600,000 homeowners stuck in the purgatory that the government refers to as a “trial modification,” so look for at least a few hundred thousand more foreclosures there, for sure!

It really is an exciting time to be investing in the foreclosure industry in this country, and there’s no better way than through Nina Easton’s Empty Homes Hi-Yield Bond Fund.

Now, it is true that HAMP, as of June 1st, will start requiring homeowners to verify their incomes prior to being placed into a trial modification, and the early indications are that a much higher percentage of homeowners will ultimately be granted permanent modifications in future months as a result of this new requirement.

Big deal… The numbers of homeowners entering the program declined dramatically as soon as the servicers started asking for proof of income in advance of being granted a trial modification, so even if this does make HAMP incrementally better, it won’t come close to touching the more than 300,000 new foreclosures occurring each month in this country!  How could you ask for better fundamentals than that?

And the best part is… you can still rely on the fact that HAMP is “VOLUNTARY” as far as the banks and servicers are concerned!

So, relax… you don’t think the banks and servicers are going to do anything to stop foreclosures, do you?  Of course not!  And it’s still… ALL UP TO THEM!

If there’s one thing you can depend on, it’s that the banks and servicers will continue to fuel the foreclosure industry’s growth, so with the government allowing the banks total discretion on all foreclosure decisions, investing in Nina Easton’s Empty Homes Hi-Yield Bond Fund is a safe bet and a sure winner.  It’s like we’ve got Colonel Sanders guarding the chickens, if you know what I mean.

Barring some totally unforeseen change in the administration, like Paul Volker being taken seriously, Bernanke allowing us to audit the Fed, Tim Geithner turning on his banking buddies on Wall Street, or Liz Warren being given teeth, there’s no way Obama’s Making Home Affordable program is going to address the millions more homes that will be lost as a result of the foreclosure crisis.

And come on… I understand that past performance is no assurance of future results, but Volker taken seriously?  Geithner turning on Wall Street?  Liz Warren being given teeth?  Bernanke letting anyone inside the Fed?  HAHAHAHAHA… I know… anything can happen, but come on… it’s like thinking that maybe the banksters are going to wake up one morning afraid of Obama.  Come on… you’re killing me… not in this lifetime, baby!

No, folks… the good news for our emerging foreclosure industry, and for Nina Easton’s new Empty Homes Hi-Yield Bond Fund, is that our government has failed at every single turn in trying to stem the tide of foreclosures in this country, and there’s no reason to believe they’re going to be any more competent in the future!

Some say that America has lost its leadership position in the world, but I don’t believe that for a second, and I think we’re already proving it with our clear dominance in the foreclosure industry.  There’s no other country on the globe that has anywhere near as vibrant a foreclosure industry as we do here in the good old U.S.A.

We’re the dominant world leader in foreclosure production, and with nothing in place to stimulate economic growth, nothing even on the drawing board to reverse the trends in unemployment, and all of our money and then some going to prop up failed financial institutions that remain insolvent, how can anyone not think that we will maintain our leadership position as the foreclosure capital of the free world?

And don’t worry about all these pesky demonstrations by homeowners.  Like Nina wrote in her blog last week about the unwashed masses that were demonstrating in front of her house, just because her neighbor works for some bank:

Waving signs denouncing bank ‘greed,’ hordes of invaders poured out of 14 school buses,” childishly putting “greed” in quotes as if referring to unicorns, hobbits, or some other imaginary entity.

Ooooh, snap!  We love you Nina!

So, don’t miss out on the opportunity to go long on the promise of our government’s ongoing incompetence by investing in Nina Easton’s Empty Homes Hi-Yield Bond Fund today!

Disclaimer: Past incompetence is no assurance of continued ineptitude, or future ineffectiveness.

Don’t worry about not having any money left in your IRA or 401(k), many of our investors simply stop making mortgage payments and then invest those amounts in the fund each month.  We even offer direct deposit, so you can just call your bank where your mortgage payments are automatically going now, and have them redirected toNina Easton’s Empty Homes Hi-Yield Bond Fund!

It’s that simple!  Why not start rooting for more foreclosures today?

Isn’t it time to get on the right side of this foreclosure crisis thing, by investing on the winning side!  Sure you may lose a house or two, but so what?  You’re so far underwater that the only difference between you and a renter is that a renter has more rights and can’t be evicted as quickly.

Besides with the money you’ll make investing in my new Empty Homes Hi-Yield Bond Fund, soon you’ll not only be able to buy the home across the street for half the price, you’ll be able to pay  cash!

For more information, call:

1-800-4-EMPTY-HOMES

Or send email to:

invest@throwthemouttoday.com

Operators are standing by to take your call.


~~~~~~~~~~~~

IMPORTANT DISCLAIMERS:

The Empty Homes Hi-Yield Bond Fund is not registered with FINRA or the SIPC, but so what, neither are trillions in derivatives.

Although current personnel working for the administration can be counted on as entirely lacking in ability or skill, theEmpty Homes Hi-Yield Bond Fund makes no assurances pertaining to the stupidity or utter uselessness of those who may work for the administration in the future.

In the event of an outbreak of competence in Washington D.C. investors should recognize that they could lose their investment in the Empty Homes Hi-Yield Bond Fund, although at this point, the FUND’s management believes that statistically this risk falls somewhere between the risk of shark attack in Indiana, and being killed by falling airplane parts while shopping at an indoor mall.

Nina Easton’s

Empty Homes Hi-Yield Bond Fund

Your Ticket to Winning Our Nation’s Race to the Bottom

Fictional Securities Not Offered by Mandelman Matters.  This, of course, was a joke.  Except for the stuff at the top about the companies like Lender Processing Services… that stuff is real, and should make you want to throw up.  Oh, and the stuff about Nina Easton was real too, and I can’t decide whether to ignore her, or write something about her every single day for the rest of my life.

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LENDER PROCESSING SERVICES (LPS) BUYING UP HOMES AT AUCTIONS? Take a look to see if this address is on your documents!

Lender Processing Svc
(651) 234-3500
1270 Northland Dr Ste 200
Mendota Heights, MN 55120

Take a good look at the Buyer and the address in the document below. I investigated a little more and found multiple addresses below in forums and placed them here for you to see.

If you take a look at the Buyer in this Title the “Certificate Of Title” was issued under IndyMac Federal Bank…HUH? IndyMac FB does not exist…This seriously needs to be investigated! How are these being sold under failed banks?? Where does the money go after the auction and from the new sale?

Everyone needs to look at their documentation and look carefully for this address. If you have them under this address please forward them to StopForeclosureFraud@gmail.com.

OTHERS LISTED WITH 1270 Northland Dr. Ste 200 Mendota Heights, MN 55120

Fidelity National Foreclosure Solutions 1270 Northland Drive Suite 200.Mendota HeightsMN 55120 · (651)234-3500

Foreclosure & Bankruptcy Services. 1270 Northland Drive, Suite 200, Telephone, (651) 234-3500. Mendota HeightsMN 55120, Fax, (651) 234-3600 

http://www.tampagov.net/CEBAgendas/20071001.pdf

WELLS FARGO BANK NA TRUSTEE
1270 NORTHLAND DR SUITE 200
MENDOTA HEIGHTS, MN 55120
INSPECTOR: Eddie Prieto  274-5545

DEUTSCHE BANK NATIONAL TRUST
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS, MN 55120
INSPECTOR: RANDEL SMITH 274-5545

http://www.newspapernotice.com/details.aspx?id=1889632
Current Beneficiary: MERS as nominee for Aegis Mortgage Corp Care of / Servicer Aegis Mortgage Corp/Fidelity C/O Fidelity National Foreclosure Solutions 1270 Northland Drive. Suite 200 Mendota Heights, MN 55120

http://www.geodetix.com/ftp/APPRAISAL_INFO_SAMPLE.TXT
BANK ONE NATIONAL ASSN TRUSTEE
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS MN 55120

http://ao.lackawannacounty.org/details.php?mapno=14204010007

DEUTSCHE BANK NATL TRUST CO
1270 NORTHLAND DR SUITE 200
MENDOTA HEIGHTS, MN 55120

http://www.stpete.org/pdf/vacantandboarded.pdf
WELLS FARGO BANK NA  TRE
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS                MN
551201176

LONG BEACH MTG LOAN TRUST
1270 NORTHLAND DR STE 20
MENDOTA HEIGHTS                MN
551201156

DEUTSCHE BANK NATL TRUST CO  T
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS                MN
551201176

http://www.alsb.uscourts.gov/credclaim.pdf
HomEq Servicing Corp.
1270 Northland Dr., #200
Mendota MN
55120-

IndyMac Bank-FSB;The Leader
Mortgage Co.
1270 Northland Drive, Suite 200
Mendota Heights
MN
55120-

Saxon Mortgage; Homecomings
Financial
1270 Northland Dr., #200
Mendota Heights
MN
55120-

http://madison-co.com/elected_offices/tax_assessor/display_parcel.php?pn=082I-29%20-007/02.29&street_name=v
FEDERAL NATIONAL MORTGAGE ASSOC
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS
MN 55120

http://gis.meridian.mi.us/assessing/details_process.asp?IDValue=33-02-02-06-378-004

JP MORGAN CHASE BANK
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS
MN  55120http://www.co.bibb.ga.us/TaxBills/NFBill.asp?id=346133

BANK ON E AS TRUSTEE

1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS MN 55120-

http://www2.county.allegheny.pa.us/RealEstate/General.asp?CurrBloLot=0079B00251000000&SearchBloLot=0079B00251000000&SingleResult=True


JP MORGAN CHASE BANK (TRUSTEE)
1270 NORTHLAND DR SUITE 200
SAINT PAUL, MN 55120

http://www.lehighcounty.org/Assessment/puba.cfm?doc=HeroesGrant_form.cfm&pin=640703621999&parnum=1
WELLS FARGO BANK NA
1270 NORTHLAND DR STE 200
MENDOTA HEIGHTS MN, 55120

Contact Matrix and Team Breakdown of FIS Foreclosure Solutions, Inc.
operations for the month of December 2007

Select Portfolio Servicing Inc.
1270 Northland Drive, Ste. 200
Mendota Heights, MN 55120

http://www.dailycourt.com/bankruptcy.php/3:05-bk-39314/
Case #3:2005-bk-39314
Select Portfolio Servicing, Inc.
1270 Northland Drive, Suite 200
Mendota Heights, MN 55120

RELATED STORY:

ARE FORECLOSURE MILLS Coercing Buyers for BANK OWNED homes? ARE ALL THE MILLS?

DOUBLE TROUBLE: Sanctions Motion filed 5/21/2010 Against LENDER PROCESSING SERVICES (LPS)

Dear Editor:

Once again, a U.S. Trustee is leading the way in exposing fraud in foreclosures. On Friday, May 21, 2010, United States Trustee R. Michael Bolen, Region 5, Judicial Districts of Louisiana and Mississippi, by Mary Langston, Assistant U.S. Trustee, New Orleans, Louisiana, filed a Motion for Sanctions against Lender Processing Services, Inc. and The Boles Law Firm. The Motion was filed in a bankruptcy action, In re Ron Wilson, Case No. 07-11862, U.S. Bankruptcy Court, Eastern District of Louisiana.

The U.S. Trustee is seeking to sanction LPS and The Boles Law Firm for making misrepresentations in statements and/or in testimony in open court, during the course of Show Cause proceedings initiated by the Court. Show Cause Orders were entered on May 9, 2008, July 11, 2008 and July 18, 2008. The misrepresentations relate to a Motion to Lift Stay (“2d MFR”) filed on March 10, 2008 and execution of a false affidavit supporting the 2d MFR, filed on behalf of Option One Mortgage Corporation, n/k/a Sand Canyon Corporation.

The misrepresentations concern payments received but not posted by Option One, dated January 2, 2008; January 31, 2008; and March 3, 2008 (the “Unposted Payments”).

According to the Trustee, Fidelity National Information Services, Inc. (now, Lender Processing Services, Inc.) misrepresented to the Court its knowledge of, and whether it communicated with Boles about the Unposted Payments. Further, the Trustee alleges that LPS/Fidelity misrepresented that it did not function as a “go between” in this case, between Boles and Option One, with respect to the Unposted Payments.

“Boles lacked candor before this Court, based on statements that one if its attorneys made to the Court on June 26, 2008 during the OSC [Order to Show Cause] proceeding. In that hearing, the Boles attorney indicated that, although Boles possessed one or more of the Unposted Payments, Boles did not know why it had received them. Upon information and belief, the proof will show that Boles received the Unposted Payments because Boles had issued instructions directing that each of the Unposted Payments be sent to it.”

Again, according to the Trustee, “The respondents’ [LPS and Boles] representations were not well grounded in fact, were made in bad faith to avoid potential liability, and have resulted in unnecessarily protracted discovery and litigation concerning their roles involved with the 2d MFR and false affidavit.”

In a 19 page Memorandum of Law supporting the motion for sanctions, Trustee Mary Langston set forth that Dory Goebel, an officer and employee of Fidelity, was questioned regarding an Affidavit she had submitted regarding unposted mortgage payments. Goebel essentially denied communications between Fidelity and the Boles firm:

“Goebel testified that Fidelity would not have communicated with the Boles law firm regarding post-referral payments; rather, Option was responsible for notifying its counsel directly about such payments. Goebel further testified that she reviewed the Wilson file, and that were no communications between Fidelity and Boles regarding the Unposted Payments because “[n]o, that is not the responsibility of Fidelity. We would not know of additional payments, Option One would.” August 21, 2008 Tr. 110:18 – 111:5. Goebel’s testimony thus portrayed that Fidelity would not even know that a borrower’s post-referral payment had been received unless Option posted the payment on Option’s accounting system; and that Fidelity would not communicate with Option’s counsel about payments received.” (Memorandum, p.8)

According to Trustee Langston, “However, Goebel’s testimony simply does not comport with the evidence the United States Trustee has obtained from Option, Fidelity, and Boles through discovery.” (Memorandum, p.8) The Trustee goes through the many communications that contradict Goebel’s testimony. She concludes, “… the evidence establishes that both Boles and Fidelity had knowledge about the Unposted Payments which they misrepresented to the Court. Upon information and belief, Fidelity and Boles played an integral role in communicating about those very payments, participating in queries about how to handle the Unposted Payments.” (Memorandum, p.9)

This is not the first time that a U.S. Bankruptcy Trustee has sought to impose sanctions against Fidelity and/or LPS. Most recently, the in the case of Niles and Angela Taylor, 2009 WL 1885888 (Bankr. E.D. Pa. 2009), Judge Diane Weiss Sigmund also determined that sanctions were warranted in a foreclosure case involving Lender Processing Services. Judge Sigmund described in great detail how the default mortgage servicing and foreclosure systems really work.

Lender Processing Services (“LPS”) was described as the largest out-source provider in the United States for mortgage default services. The LPS systems frequently resulted in incorrect information regarding mortgages reported to litigants and judges in foreclosure actions. The LPS network of national and local law firms were required to communicate directly with LPS, and not the mortgage servicers, about any issues that arose in any given case. Likewise, the servicers were required to execute a 51-page Default Service Agreement with LPS that delegated to LPS all functions with respect to the default servicing work. LPS used a software communication system called “NewTrak” to deliver instructions and documents to the LPS network attorneys and to deliver any information to the servicers. LPS also had access to the servicers data-base platforms. The law firms were staffed primarily by paralegals with little supervision by attorneys. See
In re Taylor, supra, at 1885889 to 1885891.

Judge Sigmund found that he LPS system was designed to minimize human involvement. She concluded, “When an attorney appears in a matter, it is assumed he or she brings not only substantive knowledge of the law but judgment. The competition for business cannot be an impediment to the use of these capabilities. The attorney, as opposed to the processor, knows when a contest does not fit the cookie cutter forms employed by the paralegals. At that juncture, the use of technology and automated queries must yield to hand- carried justice. The client must be advised, questioned and consulted. The thoughtless mechanical employment of computer-driven models and communications to inexpensively traverse the path to foreclosure offends the integrity of our American bankruptcy system. It is for those involved in the process to step back and assess how they can fulfill their professional obligations and responsibly reap the benefits of technology. Noting less should be tolerated.”

In a case pending in the United States Bankruptcy Court for the Southern District of New York, In re Silvia Nuer, Case No. 08-17106 (REG), in a Memorandum of Law of the United States Trustee in Support of Sanctions Against J.P.Morgan Chase Bank National Association, filed January 4, 2010, the Trustee reviewed the testimony of Mr. Herndon, a witness for Chase, who testified that the chain of title for the property in question passed through three entities. Previously, however, Chase had submitted contrary documents. In particular, Chase had submitted an assignment “that appeared to show that Chase assigned its right as mortgagee to Deutsche, as trustee for Long Beach Mortgage Trust 2006-2. The Assignment was signed by Scott Walter as “Attorney in Fact for Chase (the “Walter November 1 Assignment”)…It was signed on November 1, 2008, after the Filing Date. This 2008 Assignment to a trust that closed in 2006 signed by an individual who did not in fact work for Chase has become the focus of the sanctions debate. Regarding the Walter Assignment, the Trustee states: “Here, the misconduct of Chase includes the attachment of the Walter November 1 Assignment…Chase’s own witness could not explain the Walter November 1 Assignment…”

Walter was actually an employee in the Minnesota office of Lender Processing Services.

What is an appropriate sanction for a company that repeatedly makes false statements in bankruptcy proceedings – and files false mortgage assignments and Affidavits – so that the bankruptcy judge will lift the stay and allow a foreclosure to proceed more quickly?

If the debtor engaged in these acts, the case would be referred to the U.S. Attorney so that criminal charges of bankruptcy fraud could be filed against the debtor. Why should a repeat offender deserve less?

Lynn E. Szymoniak, Ed., Fraud Digest

Fidelity National Takeover Talks Fail: WSJ

MAY 17, 2010, 10:55 P.M. ET

BY PETER LATTMAN: The Wall Street Journal

The pending takeover of Fidelity National Information Services Inc. collapsed late Monday, with a Blackstone Group-led consortium dropping its plan to acquire the financial-data processor, according to a person familiar with the situation.

Fidelity National’s board had asked for a “substantial increase” above the $32-per-share bid the private-equity firms had proposed, said a person familiar with the deal talks. The two sides couldn’t reach an agreement on price, this person said, and the investor group backed out of the deal.

Late Monday, Fidelity National shares dropped nearly 10% in after-hours trading, to roughly $26 each. (Fidelity National is unrelated to

Continue reading HERE

RELATED STORY: Reports say buyout firms looking to acquire Fidelity National Information Services Inc. (FIS)

Florida AG investigating LPS subsidiary: Jacksonville Business Journal

Monday, May 17, 2010, 1:50pm EDT  |  Modified: Monday, May 17, 2010, 1:51pm

Jacksonville Business Journal – by Christian Conte Staff Writer

The Florida Attorney General’s Office has launched a civil investigation similar to one launched by a Florida U.S. Attorney’s Office against Fidelity National Financial Inc. and Lender Processing Services Inc., along with an LPS subsidiary, relating to possible forged documents in foreclosure cases.

According to the Attorney General’s website, DOCX LLC, based in Alpharetta, Ga., “seems to be creating and manufacturing ‘bogus assignments’ of mortgage in order that foreclosures may go through more quickly and efficiently. These documents appear to be forged, incorrectly and illegally executed, false and misleading. These documents are used in court cases as ‘real’ documents of assignment and presented to the court as so, when it actually appears that they are fabricated in order to meet the documentation to foreclosure according to law.”

The Attorney General’s Economic Crimes Division in Fort Lauderdale is handling the case.

Fidelity National Financial (NYSE: FNF), based in Jacksonville, provides title insurance, specialty insurance, claims management services and information services. Lender Processing Services (NYSE: LPS), also based in Jacksonville, provides mortgage processing services, settlement services, mortgage performance analytics and default solutions.

Fidelity National acquired DOCX, which processes and files lien releases and mortgage assignments for lenders, in 2005.

The U.S. Attorney’s office launched its investigation of DOCX in February.

LPS stated in its 2009 annual report that there was a “business process that caused an error in the notarization” of mortgage documents, some in the foreclosure proceedings in “various jurisdictions around the country,” according to a filing with the U.S. Securities and Exchange Commission.

While the company said it fixed the problem, the annual report stated it spurred an inquiry by the Clerk of Superior Court in Fulton County, Ga., and most recently, LPS was notified by the U.S. Attorney’s Office for the Middle District of Florida, based in Tampa, that it is also investigating the “business processes” of DOCX.

cconte@bizjournals.com | 265-2227
Read more: Florida AG investigating LPS subsidiary – Jacksonville Business Journal:

RELATED STORY: MISSION: VOID LENDER PROCESSING SERVICES “ASSIGNMENTS”

Reports say buyout firms looking to acquire Fidelity National Information Services Inc. (FIS)

Posted: May 6, 2010 – 1:19pm Jacksonville.com

By Mark Basch

Two large private equity firms are in talks to buy out Jacksonville-based Fidelity National Information Services Inc., according to news reports today.

The Wall Street Journal reported that Blackstone Group LP was considering the deal along with other firms. Bloomberg News later reported that Thomas H. Lee Partners LP is joining Blackstone in the bid.

Fidelity said the company’s policy is to not comment on speculation about acquisitions.

Fidelity National Information Services, or FIS, provide technology services for financial companies. It was spun off from title insurance company Fidelity National Financial Inc. Another publicly-traded company, Lender Processing Services Inc., was spun off from FIS.

The two Fidelity companies and LPS are all headquartered in Jacksonville, but all three operate independently.

Bloomberg reported that “two people with knowledge of the situation” said the deal is “under discussion and may not happen.”

mark.basch@jacksonville.com, (904) 359-4308

RELATED STORIES: HERE

First American sues 8 rivals over AVMs: LENDER PROCESSING SERVICES (LPS)

Things that make you go Hmmm…

Patent infringement lawsuit seeks damages from Zillow, LPS, others

BY MATT CARTER, TUESDAY, MAY 4, 2010.

Inman News

First American CoreLogic Inc. has filed a lawsuit against eight companies, including Zillow Inc. and Lender Processing Services Inc., claiming the companies’ automated property valuation services infringe on a 1994 patent.

In its complaint, CoreLogic seeks an injunction against the companies to prohibit them from using or selling any products that fall within the scope of the patent, and for triple damages to “compensate CoreLogic for its profits lost.”

None of the companies named in the April 16 lawsuit have filed formal a response to the complaint, and none would comment to Inman News.

The companies named in the lawsuit provide automated valuation model (AVM) services to businesses or consumers — computer-generated property value estimates that typically rely on a property’s unique characteristics, public property records and other market statistics.

A spokeswoman for Zillow — a site that became one of the Internet’s most popular real estate portals by offering instant, free property “Zestimates” to consumers — said the company was aware of the lawsuit, and “has no plans to change any aspect of our business as a result of this complaint.”

LPS — a technology and data provider for the National Association of Realtors’ Realtor Property Resource database — said the company does not comment on pending litigation, but “does intend to continue providing AVM services.”

NAR’s RPR LLC subsidiary intends to generate revenue by incorporating active and sold listings data into automated property valuations that the company hopes will become a standard for the lending industry, government agencies and others (see story).

Other companies named in the lawsuit include: Fiserv Inc., Intellireal LLC, Interthinx Inc., Precision Appraisal Services Inc., Real Data Inc. and RealEC Technologies Inc.

Patent lawsuits can sometimes take years to resolve, as defendants may be able to demonstrate that a patent was issued for an idea that was not new, or that a patent claim was overly broad or vauge.

In its lawsuit, CoreLogic claims the rights to U.S. Patent 5,361,201, issued Nov. 1, 1994, for an “automated real estate appraisal system” and assigned by its inventors to HNC Inc

Summarizing the system in their patent application, inventors Allen Jost, Jennifer Nelson, Krishna Gopinathan and Craig Smith described how predictive models could generate estimated property values based on individual property characteristics and neighborhood or area characteristics.

Through a trial and error process, they said, the models could be fed “training data” in order to “learn” the relationships between individual property characteristics and area characteristics.

In the learning stage, the model’s predicted property values are compared to actual sales, and the weights assigned to different variables repeatedly adjusted to achieve the greatest degree of accuracy.

Although the process was similar in concept to established regression analysis techniques, the inventors said the application would also employ “neural networks” to automatically detect relationships between variables that would otherwise need to be detected and inputted manually by programmers.

Neural networks, they said, would allow rapid development of models and automated data analysis — a vital capability if the goal is to value properties in thousands of neighborhoods or areas, each requiring its own model.

Once the models had been developed, the inventors said, they could also be programmed to monitor their own performance and adjust their assumptions when performance dropped below a predetermined level.

In addition to an estimated property value, the models would be able to compute the predicted margin of error, allowing for a value range to be generated for each property — a common feature of AVMs offered to consumers.

The patent application described the algorithms and dozens of variables that could be used to generate valuations, and included source code written in ANSI C and Microsoft Excel macro.

The patent was assigned to Transamerica Intellitech Inc. in August 2000, and then to First American Real Estate Solutions, now part of CoreLogic.

First American is spinning off its information solutions group into a separate, publicly traded company, to be known as “CoreLogic.”

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