Michigan AG subpoenas three mortgage processors

Michigan Attorney General Bill Schuette subpoenaed three mortgage processors Wednesday in connection with a statewide criminal investigation into allegations of improper mortgage documentation. Schuette filed subpoenas against Lender Processing Services (LPS), Fidelity National Financial (FNF) and CT Corporation System. Schuette requested processing documents from the three firms regarding foreclosure and bankruptcy recordings. The AG expects to have the documents by June 30. “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.” In April, Schuette launched a criminal investigation into mortgage documents filed with the Michigan Register of Deeds which he believed could be questionable. Schuette was tipped off by Bill Bullard, the Oakland County clerk/register of deeds, who said he uncovered a serious pattern of document fraud. LPS and Fidelity National were not immediately available for comment. A representative of CT Corp. said the firm may be receiving the subpoena as a registered agent of a different company. A committee for the Ingham County Board of Commissioners in Michigan recently approved up to $60,000 in Legal Aid funding to represent borrowers affected by this issue. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.