BKR Judge SLAMS LPS and Sanctions Servicer For Improper Accounting and Fraudulent Practices

SEE LIVINGLIES LITIGATION SUPPORT AT LUMINAQ.COM

REPRESENTATIONS BY COUNSEL ARE NO SUBSTITUTE FOR PROOF

SEE 52867919-In-Re-Wilson-Memorandum-Opinion-07-Apr-2011

NOTABLE QUOTES:

“The fraud perpetrated on the Court, Debtors, and trustee would be shocking if this Court had less experience concerning the conduct of mortgage servicers. One too many times, this Court has been witness to the shoddy practices and sloppy accountings of the mortgage service industry. With each revelation, one hopes that the bottom of the barrel has been reached and that the industry will self correct. Sadly, this does not appear to be reality. This case is one example of why their conduct comes at a high cost to the system and debtors.”

“The abuse begins with a title. In this case, Ms. Goebel was cloaked with the position of “Assistant Secretary,” in a purposeful attempt to convey an experience level and importance beyond her actual abilities. Ms. Goebel is an earnest young woman, but with no training or experience in banking or lending. By her own account, she has rocketed through the LPS hierarchy receiving
92    12/1/10 TT 382:5-8. 93    12/1/10 TT 382:9-384:21. 94 Id. 95    12/1/10 TT 342:25-343:10. 96 12/1/10 TT 341:5-8, 14-19.
21
Case 07-11862    Doc 304    Filed 04/07/11    Entered 04/07/11 08:07:49    Main Document Page 22 of 26
promotions at a pace of one (1) promotion per six (6) to eight (8) month period.97    Her ability to slavishly adhere to LPS’ procedures has not only been rewarded, but has assured the development of her tunnel vision. Ms. Goebel does not understand the importance of her duties, and LPS failed to provide her with the tools to question the information to which she attests.”

“It is evident that LPS blindly relied on counsel to account for the loan and all material representations. In short, the affidavit was nothing other than a farce and hardly the evidence required to support relief. The facts supporting a default are the lender’s to prove, not counsel’s. In this case the lender and LPS cloaked Ms. Goebel with a title that implied knowledge and gravity. LPS could have identified Ms. Goebel as a document execution clerk but it didn’t. The reason is evident, LPS wanted to perpetrate the illusion that she was both Option One’s employee and a person with personal and detailed knowledge of the loan. Neither was the case.“

The hearing on the Motion for Sanctions provides yet another piece to in the puzzle of loan administration. In Jones v. Wells Fargo,104 this Court discovered that a highly automated software
103 12/1/10 TT 341:5-8, 14-19; 379:4-13. 104 Jones v. Wells Fargo, 366 B.R. 584 (Bankr.E.D.La. 2007).
25
Case 07-11862    Doc 304    Filed 04/07/11    Entered 04/07/11 08:07:49    Main Document Page 26 of 26
package owned by LPS and identified as MSP administered loans for servicers and note holders but was programed to apply payments contrary to the terms of the notes and mortgages. In In re Stewart,105 additional information was acquired regarding postpetition administration under the same program, revealing errors in the methodology for fees and costs posted to a debtor’s account.”

Submitted by Nye Lavalle

First, thanks to Lisa Epstein for her dedication and forwarding this ruling to me…  Next, as you each know, for years, I have documented thousands of abuses, schemes, frauds, shams etc… involved in mortgage servicing, bankruptcy, securitization, foreclosure etc…  I also was the first to show the scams and schemes of Fidelity National and its off-spring such as LPS.

I reduced the banking industry’s scams and abuses into three primary areas or categories OVER 12 YEARS AGO!!!!.  The three (3) major issues I have informed you all of are as follows:

Tags: personal knowledge, PROOF, representations by counsel
Posted in bubble, Corruption, Eviction, securities fraud |