Bloomberg News

Lender Processing Seeks to Dismiss Nevada AG Complaint

January 31, 2012

(Updates with excerpt from court filing in third paragraph.)

Jan. 31 (Bloomberg) -- Lender Processing Services Inc. asked a court to throw out a consumer fraud lawsuit by the Nevada attorney general that accuses the company of falsifying foreclosure documents.

The complaint by Nevada Attorney General Catherine Cortez Masto fails to allege any document executed by subsidiaries was incorrect or caused any borrower financial harm, Lender Processing Services said in a statement today.

The state’s claims “are a collection of suppositions, legal conclusions and inflammatory labels,” the company said in the court filing. The document couldn’t be immediately verified in court records.

Lender Processing Services, based in Jacksonville, Florida, provides mortgage processing services and says about half of all U.S. mortgages by dollar volume are serviced using its loan- servicing platform.

Nevada sued the company in December, claiming that it engaged in a pattern of “falsifying, forging and/or fraudulently executing” foreclosure documents, requiring employees to execute or notarize as many as 4,000 foreclosure- related documents a day, according to a statement from the attorney general. Lender Processing Services also demanded kickbacks from foreclosure firms, the office said.

The case is Nevada v. Lender Processing Services Inc., A-11-653289-B, District Court, Clark County, Nevada (Las Vegas).

--With assistance from Will Daley in New York. Editors: Glenn Holdcraft, Andrew Dunn

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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