LPS Reaches $120 Million Deal in ‘Robosigning’ Probe

By David McLaughlin – Jan 31, 2013 9:55 AM ET

Lender Processing Services Inc. (LPS) reached a multistate settlement to resolve claims of improper foreclosure practices, including the “robosigning” of documents.

The $127 million settlement involves 46 states and the District of Columbia, LPS said today in a statement. The proposed settlement also will require LPS to correct faulty foreclosure paperwork as necessary, Illinois Attorney General Lisa Madigan said in a separate statement.

“LPS and its subsidiaries became a sort of document factory, literally rubber stamping thousands of foreclosures with no regard to fairness and accuracy in the process,” Madigan said.

Hugh Harris, chief executive officer of LPS, said in the statement that the settlement is “another major step toward putting issues related to past business practices behind us.”

New York Attorney General Eric Schneiderman said in a statement that the settlement will prohibit people without first-hand knowledge of the facts attested to in foreclosure documents from signing them and will require a review of third- party fees.

To contact the reporter on this story: David McLaughlin in New York atdmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net