Full article here. Expect more like this as the tangled web that is our real estate system is picked apart by the legal system.
The lawsuit, filed Jan. 16 in the U.S. Bankruptcy Court in Houston, contends that Fidelity has conspired with mortgage-servicing companies and law firms to “add to the indebtedness” of homeowners by tacking on secret fees that remain undisclosed for years.
“The fees the Fidelity-controlled law firms charge in Chapter 13 bankruptcies are inflated by 25 percent to 50 percent,” the lawsuit asserts. The law firms, it says, then “kick back” the extra amount to Fidelity under a formal agreement under which the law firms’ fees are set. “Fidelity keeps its role, as well as the kickback, hidden from the courts as a matter of systematic policy.”
A spokesman for Fidelity, Michelle Kersch, said Tuesday that the “lawsuit is without merit, and appears to be an attempt to profit from the current wave of anti-lender sentiment created by the increase in subprime mortgage foreclosures.” She denied the kickback and fee-sharing allegations and said the company is “eager for its day in court.”
4 responses so far ↓
Barbara // February 12, 2008 at 10:53 am |
Is Fidelity Information Systems really the same thing as Fidelity National Information Services?
Dave Wirsching // February 13, 2008 at 7:48 am |
Good question. I think they are – is there anyone out there that can confirm?
Sanjoy Mitra // November 11, 2008 at 10:35 am |
No. FIS is a division of FNF, focused on wealth management applications.
Bill Hutton // May 14, 2009 at 10:47 am |
Fidelity Information Systems is the working title of Fidelity National Information Systems.
Fidelity National Corp is a holding company, sister to FIS. There is a common chairman