Posted: May 25, 2011 4:04 PM by AP Posted by James H Egbert
LOS ANGELES (AP) - The top prosecutors in California and Illinois are investigating allegations that one of the nation's largest mortgage processing companies engaged in the illegal practice of "robosigning" - signing thousands of foreclosure documents without checking their accuracy.
The attorneys general of both states said Wednesday that they've subpoenaed Lender Processing Services Inc. California ordered the company to produce documents and answer questions about its practices as far back as 2007.
Lender Processing is one of 16 banks and servicers that the federal government last month ordered to reimburse homeowners who were improperly foreclosed upon.
State prosecutors will investigate allegations that the company, which services half of all U.S. mortgages, rubber-stamped hundreds or perhaps thousands of documents it supplied to mortgage lenders to be used in foreclosure proceedings.
Messages left for a company representative weren't immediately returned.
California Attorney General Kamala Harris this week announced the formation of a task force to investigate mortgage fraud.
(Copyright 2011 by The Associated Press. All Rights Reserved.)