LPS to Pay $127 Million to Settle Robo-Signing Charges
American Banker (01/31/13) Browdie, Brian
January 31, 2013
Lender Processing Services (LPS) has agreed to pay $127 million to settle charges that it forged documents used to foreclose on homeowners. The pact resolves allegations by 46 states that LPS and its Default Solutions and DocX units "robo-signed" papers in order to accelerate the foreclosure process. The agreement bans LPS from using unauthorized surrogates to sign papers on behalf of servicers. It also prohibits the company from notarizing documents without a notary present and precludes it from offering lawyers or others who handle foreclosures for LPS incentives that sacrifice accuracy for volume or speed. Additionally, the settlement bars the firm from unreasonably marking up fees on third-party, foreclosure-related services and obliges it to maintain a toll-free phone number to answer any questions from borrowers about property-preservation services and other processes. An executive committee of attorneys general in Florida, Illinois, Iowa, Pennsylvania, and eight other states led the investigation.
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