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LPS Resolves ‘Robo-Signing’ Allegations in $127M Multistate Settlement

Forty-six state attorneys general and the District of Columbia reached a settlement agreement with Lender Processing Services, Inc. and its subsidiaries--LPS Default Solutions and DocX--to resolve allegations concerning the company's foreclosure practices.


As part of the multistate settlement, LPS agreed to pay $127 million. LPS previously resolved similar claims in Missouri, Delaware, and Colorado, leaving the company with one unresolved claim from Nevada. The claims against LPS from the state attorneys general accuse the company of ""robo-signing"" documents as well as other improper conduct related to mortgage loan default servicing.


In a statement, LPS confirmed its ongoing commitment to stronger compliance and oversight of its operations.

""Today's settlements are another major step toward putting issues related to past business practices behind us,"" said LPS president and CEO Hugh Harris. ""As LPS continues to grow and exercise its leadership in the mortgage industry, we remain committed to enhanced regulatory compliance and operational excellence, which are crucial in our changing industry.""

""Florida Attorney General Pam Bondi"":http://myfloridalegal.com/ announced her state will receive about $8.6 million of the settlement funds.

In a release, the Florida AG's office also announced the settlement requires the following, among other things:

* Prohibits LPS from engaging in the practice of surrogate signing of documents
* Ensures that LPS has proper authority to sign documents on behalf of a servicer
* Requires LPS to accurately identify the authority that the signer has to execute the document and where that signer works
* Prohibits LPS from notarizing documents outside the presence of a notary and ensures that notarizations will comply with applicable laws
* Prohibits LPS from incentivizing or promoting attorney speed or volume to the detriment of accuracy

LPS will also review documents executed between 2008 and 2010 to see if any documents require a correction.

About Author: Esther Cho


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