Oregon part of $120.6 Million robo-signing settlement
Oregon and 45 other states along with the District of Columbia have agreed to settle legal claims against Lender Processing Services, Inc. (LPS) and its subsidiaries, LPS Default Services, Inc. and DocX, LLC. The companies were allegedly involved in widespread “robo-signing” of foreclosure documents and other abuses related to mortgage loan servicing.
The company has agreed to pay $120.6 million to the states and has pledged to reform its business practices. Oregon will receive $3 million.
More than half the company’s $2 billion a year in revenue in 2011 came from Wells Fargo, JP Morgan Chase and the other largest mortgage loan servicers.
After the housing bust, foreclosure became a big part of LPS’ business. In 2011, the company’s Default Management Solutions unit generated more than $816 million in revenue.
LPS has been the target of investigations by federal banking regulators, the U.S. Justice Department and several state Attorneys General, which determined the company and its subsidiaries prepared thousands of real property documents with forged signatures or other problems.For the complete article see the 02-06-2013 issue.
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