LPS Class Action in Mississippi is Moving Forward

On Friday, January 21, 2011, Judge David Houston (Northern Dist. of Mississippi) ruled a class action naming LPS, Great Hill Partners, Prommis Solutions, and Johnson and Freeman as defendants in a case alleging illegal fee splitting in Chapter 13 Bankruptcy cases will move forward. The story was first reported by Yves Smith on her blog “Naked Capitalism“.

Based on the documents filed in the case the defendants were expecting it to be dismissed at yesterday’s hearing– instead the clock has started on gathering proof.

It appears that the questions the mortgage servicing industry has fought not to answer are on track to see inside a courtroom.