Contact Us

Fmr Mortgage Processor President to Serve 40 Months to 20 Years for Role in Robo-Signing Fraud

courtesy MLive

On Friday, Michigan Attorney General Bill Schuette announced that Lorraine Brown, former president of mortgage document processor DocX, was sentenced to 40 months to twenty years in prison on one count of Conducting Criminal Enterprises (Racketeering) for her role in authorizing the fraudulent signing of mortgage documents filed in Michigan.

Brown was sentenced on May 2, 2013 by Kent County’s 17th Circuit Court Judge Mark Trusock. Following the sentencing, Brown was remanded to the custody of the Michigan Department of Corrections to begin serving her sentence. Brown pleaded guilty to the racketeering charge on February 11, 2012. Brown’s conviction followed an Attorney General investigation into questionable mortgage documentation filed with Michigan’s Register of Deeds offices during the foreclosure crisis.

“Michigan families continue to grapple with the damage caused by the mortgage foreclosure crisis,” said Schuette. “Shortcuts at taken at the expense of Michigan homeowners will not be tolerated.”

In April 2011, Schuette launched an investigation after county officials across the state reported that they suspected Assignment of Mortgage documents filed in their offices may have been forged. A”60 Minutes” news broadcast had shown that 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.

As part of his investigation, Schuette reviewed documents filed in Michigan and prepared by DocX, a document processing company located in Georgia. DocX processed mortgage assignments and lien releases for residential lenders and servicers nationwide. Schuette’s investigation revealed that former DocX president Lorraine Brown, 51, of Alpharetta, Georgia, established and orchestrated a widespread scheme of “robo-signing,” a practice in which employees were directed to fraudulently sign another authorized person’s name on mortgage documents in order to execute these documents as quickly as possible.

Internally, DocX identified this practice as “facsimile signing” or “surrogate signing.” From 2006 through 2009, these improperly executed documents were created and recorded at Brown’s direction. Schuette’s investigation revealed that more than 1,000 unauthorized and improperly executed documents were filed with county registers of deeds throughout Michigan. Schuette charged Brown with Racketeering, a 20-year felony, in Kent County’s 61st District Court in November 2012.

In 2012, Schuette joined 48 other state attorneys general in entering into a settlement with the five leading bank mortgage servicers. The settlement addressed allegations of faulty foreclosure processes and poor servicing of mortgages that harmed Michigan homeowners. The settlement also required comprehensive reforms of mortgage loan servicing to improve customer service for Michigan borrowers. More information on the 2012 Mortgage Settlement is available on the Attorney General’s Website at www.michigan.gov/mortgagesettlement.

More from WFNT

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://wfnt.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on Flint's News Talk quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Please solve this simple math problem to prove that you are a real person.

Register on Flint's News Talk quickly by logging in with your Facebook account. It's just as secure, and no password to remember!