Posts Tagged ‘ mortgage-related documents ’

LPS Settles Federal Mortgage Fraud Inquiry for $35M

LPS Settles Federal Mortgage Fraud Inquiry for $35M

02/15/2013 BY: ESTHER CHO

Lender Processing Services Inc. (LPS) agreed to pay $35 million to resolve criminal fraud violations involving fraudulently signed and notarized mortgage documents, the Justice Department announced Friday.

LPS entered into a non-prosecution agreement with the department and the U.S. Attorney’s Office for the Middle District of Florida. Through the settlement, LPS announced it will pay $20 million to the United States Marshals Service and $15 million to Treasury.

The agreement also requires the company to meet a series of other conditions.

The department stated LPS has already taken a number of remedial actions to address the misconduct at DocX, a wholly owned subsidiary of LPS, and has wound down all the subsidiary’s operations and re-executed and re-filed mortgage assignments as necessary.

The settlement follows guilty pleas from Lorraine Brown, the former CEO/president of DocX. In November, Brown pled guilty to conspiracy to commit mail and wire fraud in federal court in Florida and entered a plea deal in Missouri. Michigan attorney general Bill Schuette also brought charges against Brown and recently announced the former CEO pled guilty to racketeering.

The Justice Department statement explained that over a 6-year period ending in 2009, employees of DocX falsified signatures on mortgage-related documents. Brown and others at DocX were accused of directing authorized signers to allow unauthorized staff to sign and have documents notarized in order to increase profits.

The announcement follows a $127 million multistate settlement in January to resolve “robo-signing” allegations.

In a statement, Hugh Harris, LPS president and CEO, said, “[t]he conclusion of the Justice Department’s inquiry is another positive step for LPS.”

“Coupled with recent settlements with multiple state attorneys general, as well as other litigation, LPS has effectively dealt with its legacy issues related to past business practices and is squarely focused on delivering leading technology-driven solutions to enable the mortgage industry to meet its new requirements,” Harris added.

 

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LPS Settles with Colorado AG for $1.8M

LPS Settles with Colorado AG for $1.8M

10/30/2012 BY: ESTHER CHO

Lender Processing Services, Inc. (LPS) reached a settlement with Colorado Attorney General John Suthers for $1.8 million over former document execution practices by LPS subsidiaries, DocX, LLC and LPS Default Solutions.

About $500,000 will be used to reimburse fees and costs from the attorney general’s office. Funds will go toward programs related to foreclosure prevention, loan modification, and housing.

According to a release from the AG’s office, some of the mortgage-related documents generated or executed by LPS subsidiaries had defects such as unauthorized signatures and improper notarizations. Information in the release alleges that between March 1, 2009 and November 1, 2009, employees and agents of DocX used “surrogate signers,” or DocX employees who signed on behalf of other DocX employees that were or had been authorized at one time to sign on behalf of certain mortgage servicers.

“This settlement with LPS is part of our on-going investigation into all facets of the foreclosure process in Colorado,” said Suthers. “It is important that the foreclosure process work as intended and that borrowers and the legal system have confidence in it.”

LPS president and CEO Hugh Harris said, “This settlement is another important step in our continuing efforts to resolve legal and regulatory issues related to past, discontinued document execution practices. LPS remains focused on resolving all remaining legal and regulatory challenges as expeditiously as possible, and is committed to ensuring that we continue to operate with integrity and compliance in everything we do.”

LPS announced the settlement terms release the company of potential liability in Colorado concerning past practices from LPS and its subsidiaries.

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