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The Business of Document Production

posted by Bob Lawless

In legal circles, "document production" is a term of art usually used to describe the transmission of evidentiary documents from one side to another as part of the discovery process in civil procedure. With the mortgage crisis, it also now can refer to the business of documenting the complex ownership chains that were created when mortgages were passed from originator to bank to securitization pool and then perhaps even further down the line. As Katie Porter commented a few weeks ago here at Credit Slips, there seems to be a boom industry in creating the documents to be back upon lenders' claims that they own a particular mortgage. (If you're unfamiliar with these issues, Porter's post provides the relevant background plus some links for more information.)

Now comes a Wall Street Journal story, courtesy of reporter Amir Efrati and Carrick Mollenkamp, saying there is a criminal probe involving one of the top providers of mortgage documents to the lending industry. According to the story, prosecutors are said to be "reviewing the business procedures" of Docx LLC, a subsidiary of Lender Processing Services, Inc. Given the problems that have been reported about mortgage documentation, I was surprised that this article did not get more attention. The article also links to some bankruptcy court documents where LPS services were used, and court sanctions are being sought. Well worth a read.

Comments

Sorry, Professor. WSJ article didn't come through for me. In case anyone else missed it:
http://online.wsj.com/article/SB10001424052702303450704575160242758576742.html

With regards to Doc X, LPS and the rest of the industry, it may be beneficial to review some of Attorney Lynn Szymoniak's recent compilations of information. These allegations are fairly industry-wide and not solely applicable to any one company in particular. Of course, this is my own individual opinion but I've got a couple of dozen documents that I've compiled on my own to back it up.

Fabrications & Forgeries - Comparing Signatures & Titles on Mortgage Documents
http://www.scribd.com/doc/25420484/Fabrications-amp-Forgeries-Comparing-Signatures-amp-Titles-on-Mortgage-Documents

Mortgage Assignments as Evidence of Fraud
http://www.scribd.com/doc/27977506/Mortgage-Assignments-as-Evidence-of-Fraud

An Officer of Too Many Banks
http://www.scribd.com/doc/25266216/An-Officer-of-Too-Many-Banks

Assignment/Foreclosure Fraud Explained
http://mattweidnerlaw.com/blog/2010/03/assignmentforeclosure-fraud-explained-attorney-lynn-szymoniak/

I only heard about document production for business, never herd about business of documents production. Any way thanks for well explained information.

Thanks, Mike. I fixed the link in the main article.

Document production. LOL. A nice euphemism.

Those that are aware of what is happening (evidence fabrication and forgery) are witnessing the "un-doing" of 1000 years of property law. It is unfortunate that so few courts are in the group of the aware.

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  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

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