(The following is a reformatted version of a press release
issued by the Office of Michigan Attorney General Bill Schuette
and received via electronic mail. The release was confirmed by
MAY 3, 2013
Schuette Announces Former Mortgage Processor President to Serve
40 Months to Twenty Years in Prison for Role in Robo-Signing
Former DocX President Lorraine Brown Sentenced for Racketeering
After Orchestrating Forged Signatures on Thousands of Mortgage
Documents Filed in Michigan
LANSING - Michigan Attorney General Bill Schuette today
announced 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
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 Schuette Announces
Former Mortgage Processor President to Serve 40 Months to Twenty
Years in Prison for Role in Robo-Signing Fraud
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.
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