Lender Processing Services Inc's (LPS) stock price has continued to drop since Friday as reports of widespread use of fraudulent documents in foreclosure cases continue to emerge. LPS is a Jacksonville-based company that works hand-in-hand with the foreclosure mills that foreclose on a home when a homeowner is delinquent on their mortgage.
Investors are beginning to be skeptical of LPS for a number of reasons. First, the recent foreclosure freeze will reduce the company's business. Second, concerns have been raised that Docx, a subsidiary of LPS, may have improperly created documents when the lenders that they were working for did not have the documents required to foreclose on a home. Finally, last week a lawsuit filed in Mississippi alleges that LPS was involved in a fee splitting arrangement with the law firms that they work with.
