LPS Settles with Colorado AG for $1.8M

""Lender Processing Services, Inc."":http://www.lpsvcs.com/Pages/default.aspx (LPS) reached a settlement with ""Colorado Attorney General John Suthers"":http://www.coloradoattorneygeneral.gov/ for $1.8 million over former document execution practices by LPS subsidiaries, DocX, LLC and LPS Default Solutions.

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About $500,000 will be used to reimburse fees and costs from the attorney general's office. Funds will go toward programs related to foreclosure prevention, loan modification, and housing.

According to a release from the AG's office, some of the mortgage-related documents generated or executed by LPS subsidiaries had defects such as unauthorized signatures and improper notarizations. Information in the release alleges that between March 1, 2009 and November 1, 2009, employees and agents of DocX used ""surrogate signers,"" or DocX employees who signed on behalf of other DocX employees that were or had been authorized at one time to sign on behalf of certain mortgage servicers.

""This settlement with LPS is part of our on-going investigation into all facets of the foreclosure process in Colorado,"" said Suthers. ""It is important that the foreclosure process work as intended and that borrowers and the legal system have confidence in it.""

LPS president and CEO Hugh Harris said, ""This settlement is another important step in our continuing efforts to resolve legal and regulatory issues related to past, discontinued document execution practices. LPS remains focused on resolving all remaining legal and regulatory challenges as expeditiously as possible, and is committed to ensuring that we continue to operate with integrity and compliance in everything we do.""

LPS announced the settlement terms release the company of potential liability in Colorado concerning past practices from LPS and its subsidiaries.