By Moe Bedard
The economy in America has its citizens demanding answers. Attorney’s General, the Treasury Secretary and even the President have issued nothing less than a legal holy war against any firm associated with the loan modification industry, lending industry and securities dealers that had anything to do with mortgage backed securities.
Guilt by association is a very real danger thee days. Take for example Lender Processing Serivces, Inc., a software firm that helps U.S. lenders process more than half of the country’s mortgages. Apparently, LPS, Inc. helped the DOJ answer some questions regarding a bankruptcy case and someone leaked to the press LPS was being investigated by the DOJ. The result was that LPS lost about a third of its stock price in a single day before the New York Stock Exchange halted trading.
From Jacksonville.com:
“…LPS issued a statement this afternoon saying it “is not aware, nor has it been informed, that it is the subject of a formal investigation by the Justice Department.”
“The company did say that certain U.S. bankruptcy trustees had inquired about how LPS’s technology is used in the bankruptcy and foreclosure proceedings, and that LPS cooperated voluntarily.”
A word to the wise: if you’re associated with lending, mortgage backed securities or loan modifications, beware the implications of guilt by association or you too could lose market value overnight!
Related News
{ 1 trackback }