PennyMac and Other Companies are Making False Claims as "Servicers": Black Knight, the king of fabricated documents is behind 62% of all "servicing records."

Disclaimer: This article is for educational purposes only and not legal advice. Always consult a licensed attorney before acting on foreclosure matters.

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The Myth of the Servicer

Most companies claiming to be mortgage servicers are not truly servicing loans. Instead, they act as “clients” of Black Knight, which operates as the central hub of the mortgage servicing industry.

This arrangement creates plausible deniability for false testimony and fabricated records in foreclosure cases. Servicers can claim ignorance, while foreclosure mills present “business records” that are little more than data pulled from Black Knight’s proprietary systems.

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The Truth About Loan “Boarding”

One of the most common claims in foreclosure litigation is that a loan was “boarded” by a new servicer. In reality, no such process occurs. Servicers simply log in to the Black Knight MSP® system using credentials. There is no independent audit or verification of records.

This undermines the credibility of the so-called payment histories presented in court. Without real, verifiable records of:

• Establishment of the loan as an asset, and

• Disbursements to creditors,

the evidence is incomplete and inadmissible under standard rules of evidence.

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Black Knight’s Own Admissions

Ironically, the best evidence of Black Knight’s role comes from its own lawsuit against PennyMac. In that case, Black Knight accused PennyMac of improperly using its proprietary MSP® and Navigator™ systems — confirming that Black Knight:

• Provides servicing records for 62% of U.S. mortgage loans.

• Owns, operates, and maintains the servers where this data is stored.

• Grants servicers only limited access under nondisclosure agreements.

• Supplies the very records later presented in foreclosure cases.

This matches what foreclosure defense lawyers have argued for years: servicers are not the source of the records they rely on in court.

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Why This Matters in Court

When a servicer’s representative testifies about a payment history, remember:

1. The records are not from their own company’s system. They originate from Black Knight.

2. The records omit critical details, such as disbursements to creditors or entries establishing the debt as an asset.

Without those details, the foundation for admitting such records into evidence collapses. They should be excluded as inadmissible hearsay.

A foreclosure plaintiff must prove:

• Ownership of the underlying obligation, and

• Default by the borrower.

Neither can be shown by incomplete reports generated by Black Knight.

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The Bigger Picture

Black Knight is the successor to Lender Processing Services (LPS) and DOCX, notorious for document fabrication and robo-signing. Its former president, Lorraine Brown, even served prison time for fraud.

Today, Black Knight still operates at the center of the securitization machine, working for investment banks — not for trusts, not for servicers, and certainly not for homeowners.

“62% of all loans” are processed through Black Knight’s MSP® system. The remaining share is controlled primarily by Chase-related entities in similar fashion.

This centralization ensures that investment banks maintain control while keeping their role hidden from courts and regulators.

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Industry Connections and Red Flags

Contributor insights highlight how deeply intertwined these entities are:

• PennyMac = renamed Countrywide Financial.

• Caliber Home Loans = renamed Countrywide Financial.

• HomeX Mortgage = renamed Fremont Loan & Investments.

• Matrix Private Capital = renamed Lehman Brothers.

• CoreLogic/LoanSafe = tied to Bank of America, controlling VA’s appraisal system.

• Black Knight = formerly LPS/DOCX, with a history of fraudulent document practices.

• Bill Foley (FNF) controls Black Knight and multiple major U.S. title companies.

This network shows that foreclosure is less about collecting legitimate debts and more about protecting the investment banks’ revenue model.

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Takeaway for Homeowners and Litigators

If you’re facing foreclosure:

• Challenge the foundation of “business records.” They come from Black Knight, not the servicer.

• Demand disclosure of disbursements and creditor ownership. Without them, default is not proven.

• Highlight Black Knight’s role. Its history of document fraud and its current monopoly over servicing data undercuts credibility.

Remember: A foreclosure judgment requires proof of an actual loan obligation owed to the plaintiff. Without that proof, documents generated by Black Knight are nothing more than props.

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⚖️ Foreclosure defense is about exposing the gap between the myth of servicing and the reality of securitization. Knowing the role of Black Knight is key to undermining fraudulent foreclosure claims.

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Tags: Black Knight, fidelity, Fidelity Information Services, Ocwen, Pennymac
Posted in Corruption, discovery, evidence, Fabrication of documents, foreclosure defenses, legal standing, Pleading, Servicer |