esterday, Nevada Attorney General Catherine Cortez Masto threw the book at these people, with 606 felony and gross misdemeanor charges for supervising the "robo-signing" of documents to speed forecloses on Nevada residences. These are mid-level employees for a company called Lender Processing Services, a medium size company with over 8000 employees. But it s not a bank. It s not Goldman Sachs or JP Morgan. So why is this so important? Because LPS is a contractor to banks, and it handled a good chunk of the foreclosures around the country. If your mortgage goes into default, there s a good chance that your servicer would hand over your file to LPS, who would then initiate foreclosure proceedings. That these people are charged with forging paperwork suggests that the foreclosures themselves might not be legal, and that the banks may not actually have originated the mortgages properly. After all, why not just do the paperwork properly if you have the right to foreclose?
First I thought I'd discuss something that is often overlooked in any revolution. What comes next? What happens if the banks fail, if they are not bailed out with your taxes, or if they burn and disappear.