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LPS Settles Robo-Signing Complaints

JAN 31, 2013 11:04am ET
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Lender Processing Services has agreed to pay 44 states and the District of Columbia $121 million to settle claims of unlawful foreclosure practices, including robo-signings.

The settlement with the state attorneys general requires LPS and its subsidiaries LPS Default Solutions and DocX to “reform their business practices and if necessary to correct documents it improperly executed that harmed homeowners,” according to New York attorney general Eric Schneiderman.

Lender Processing Services and it subsidiaries “cut corners in order to maximize their profits,” Schneiderman said Thursday morning. “My office will pursue any company that generates false or robo-signed documents that are used to foreclose on New York homeowners,” the New York AG said.

The Jacksonville, Fla.-based vendor has reached separate settlements with the Missouri, Delaware and Colorado AGs. Counting those three states, LPS’ settlement costs total $127 million so far.

LPS still has to resolve a robo-signing complaint filed by the Nevada AG.

"Today's settlements are another major step toward putting issues related to past business practices behind us," said LPS president and chief executive Hugh Harris.

Besides resolving the Nevada complaint, LPS also faces civil litigation and it recently reached settlements with American Home Mortgage Servicing, Coppell, Texas, and a pension fund.

“We look forward to favorably resolving our remaining regulatory and legal issues in the near future,” Harris said.

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