Industry NewsMortgage

LPS to review three years of mortgage documents

$120.6M settlement resolves 'robo-signing' allegations by 46 states

Lender Processing Services Inc. has agreed to pay more than $120 million and review three years of documents to settle allegations that the company "robo-signed" and otherwise improperly handled mortgage documents that LPS and its subsidiaries handled for loan servicers in foreclosure proceedings.The $120.6 million settlement with attorneys general of 46 states and Washington, D.C. requires that LPS review documents executed between Jan. 1, 2008 and Dec. 31, 2010 to determine whether any need to be re-executed or corrected. For the next three years, LPS will be required to provide the attorneys general with quarterly reports of the company's remediation efforts."Today we've taken another step forward to hold accountable the many players in the marketplace who contributed to the foreclosure crisis," said Illinois Attorney General Lisa Madigan in a statement Thursday. "LPS and its subsidiaries became a sort of document factory, literally rubber stamping t...