U.S. Senator Requests DOJ Probe Into Suspected LPS' Racket That Allegedly Employed Improper Fee Structure, Resulting In Double Billing Of Fees For Legal Services

The Wall Street Journal reports:

• A U.S. senator has asked Attorney General Eric Holder to investigate the business practices of a company that provides technology services to lenders and other companies that process foreclosures.
  
  In a letter sent to the Department of Justice on Thursday, Sen. Ron Wyden (D., Ore.) raised concerns over the business practices of Lender Processing Services Inc. LPS +0.04%, a Jacksonville, Fla.-based company that offers software and logistical services for mortgage companies.
  
  The letter alleges that LPS employed an improper fee structure that resulted in double-billing homeowners or mortgage investors for legal services related to the processing of foreclosures and bankruptcies.
  
  It also says that the firm’s business model may have been responsible for sowing what became known as “robo-signing,” where bank attorneys and paralegals improperly signed off on foreclosures.

For more, see Senator Asks Justice Department to Investigate Mortgage Company.