Michigan Expands Criminal Probe Of Mortgage Servicers

Michigan's Attorney General has issued criminal investigative subpoenas against three more national mortgage servicing support providers, expanding an investigation into alleged robo-signing of foreclosure documents.

Attorney General Bill Schuette previously issued subpeonas to DocX, which provides mortgage support services, including creating, processing or recording mortgage assignments or other mortgage documentation. In an expansion of the probe, Schutte has now issued criminal investigative subpoenas to Lender Processing Services, Inc; Fidelity National Financial, Inc.; and CT Corporation System.

"Allegations of forged mortgage documents are very serious and require a thorough investigation," said Schuette. "I will continue to work closely with federal and local authorities to find answers on behalf of Michigan homeowners."

Who is Linda Green?

Michigan has been one of the country's hardest-hit states when it comes to foreclosures. Schutte's investigation began in the wake of a CBS “60 Minutes” broadcast that revealed the name "Linda Green" was signed to thousands of mortgage-related documents nationwide, but with many different variations in handwriting.  County officials in Michigan reviewed their files and found similar documents, thus raising questions about the authenticity of the documents filed.

Schuette is investigating whether certain mortgage processing companies permitted such robo-signing of legal documents filed in connection with Michigan foreclosures. Apart from the question of whether falsified signatures were used, robo-signing may also involve individuals signing affidavits to signify that mortgage documentation was properly prepared without ever conducting a proper review of the documents.

Although Michigan is a non-judicial foreclosure state, Schuette is reviewing whether robosigned documents may have been filed with courts in limited cases. The attorney general is also appealing to current or former employees of mortgage servicers or processing companies with knowledge of unlawful practices related to mortgage servicing or the execution of documents in Michigan to cooperate with the probe.