ServiceLink Fined $65M for LPS Robo-Signing Activities
Federal banking agencies have levied a $65 million fine against Fidelity National Financial subsidiary ServiceLink Holdings over deficiencies in the foreclosure-related services provided by its predecessor company.
The fine, assessed by the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, satisfies a provision of a previous consent order against Lender Processing Services. The fine will be paid to the U.S. Treasury.
The new agreement assessing the fine replaces portions of an April 2011 order against LPS that forced the company to change how it handled its default management services. While federal banking agencies will continue to monitor compliance with certain aspects of the 2011 order, the new agreement said that the agencies will not take further actions against ServiceLink and its affiliates based on the conduct that precipitated the original order.
LPS had faced accusations for a number of years that the company and its subsidiaries fraudulently signed legal documents used in foreclosure proceedings. Fidelity National acquired LPS in 2014, and the company's business was split between ServiceLink and Black Knight Financial Services, which is shielded from a fine through an agreement with ServiceLink.
Before being bought by Fidelity National, LPS reached a $127 million settlement with state regulators and paid $35 million to settle a Justice Department inquiry.
Fidelity National declined to comment on the fine, but a spokesperson for the company reiterated that it related back to the consent order against LPS that predates Fidelity's acquisition of the company.
Previous reports suggested that regulators were seeking a large penalty of more than $200 million.