On Tuesday, Missouri Attorney General Chris Koster announced a plea agreement with Lorraine Brown, the former president of the mortgage document company.
Under the agreement, Brown pleads guilty to one felony count of Forgery, one felony count of Perjury, and one misdemeanor count of Making a False Declaration. She will be sentenced to 2-3 years in the Missouri Department of Corrections.
Koster says from March to October 2009, DocX, at the direction of Brown, instituted a surrogate signing policy whereby employees signed, not their name, but the names of other employees on thousands of mortgage documents that were notarized and filed across the country.
Koster adds that Brown concealed these practices from her clients, the national mortgage servicers, and the parent company of DocX. The practices of DocX were brought to national attention by a "60 Minutes" report and resulted in several major lenders temporarily suspending foreclosures in 2010.
Brown's guilty plea to Forgery and Making a False Declaration will be entered in Boone County where a criminal prosecution is ongoing. Her plea to Perjury will be entered in Jackson County.
The Attorney General's Office worked in coordination with the Boone County Prosecutor, the Jackson County Prosecutor, the Boone County Recorder of Deeds, and the Jackson County Recorder of Deeds.