Nevada A.G. Agrees to Deal in Lender Fraud Civil Lawsuit

February 14, 2014
Reno Gazette-Journal 
mortgage lending news
The company formerly known as Lender Processing Services (LPS) has settled a "robosigning" lawsuit lodged against it in Nevada -- the only state not to accept a nationwide payout from the firm -- by agreeing to fork out nearly $5.6 million on top of $500,000 in attorney fees and costs. It is the fourth-largest settlement amount accepted by the firm, now operating as Black Knight Financial Services, topped only by California, Florida, and Texas.

The deal, which also requires the servicer to review three years' worth of mortgage documents for any improprieties, ends a civil suit brought by Nevada Attorney General Catherine Cortez Masto. It also clears her office from a judge's order two weeks ago to pay sanctions that could have saddled it with hundreds of thousands of dollars in legal fees to Black Knight. Masto, who said the company's elaborate robosigning scheme violated the state's Deceptive Trade Practices Act, said in a statement that "the provisions contained in the settlement will ensure integrity in the foreclosure process in Nevada."

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