Big trade update: LPS stands for Loser Processing Services

LPS has just tanked nearly 10% in the last few minutes as news hits that…well, here:

LAS VEGAS –Nevada’s Attorney General has filed a lawsuit for consumer fraud against Lender Processing Services, or LPS, which is a company accused of robo-signing.

“The robo-signing crisis in Nevada has been fueled by two main problems: chaos and speed,” said Attorney General Catherine Cortez Masto. “We will protect the integrity of the foreclosure process. This lawsuit is the next, logical step in holding the key players in the foreclosure fraud crisis accountable.”

The lawsuit includes allegations of widespread document execution fraud, deceptive statements made by LPS to correct document fraud, improper control over foreclosure attorneys, and misrepresentations about fees and services.

LPS is the nation’s largest provider of default mortgage services. The company processes more than 50 percent of all foreclosures annually.

Recall that this is by far our largest short and we’ve been adding to it repeatedly lately:

Markets and what I’m bidding on right now

Garage mechanic market and another update on the AMR trade

Analysis and trading updates: Central Banks take coordinated action

Another small trade

I’ll quote one of the guys in the chat as his response to this new LPS news says it all:

“It’s about time!”

That said, I’m not covering a single share or selling a single put on this name yet.