2014 Government Regulations & Business Summit
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JACKSONVILLE, Fla. –
The $127 million settlement involves 46 states – including Rhode Island and Massachusetts – and the District of Columbia. The settlement also will require LPS to reform practices and correct faulty foreclosure paperwork, Illinois Attorney General Lisa Madigan said in a 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.
State attorneys general came together in 2010 to investigate claims of improper foreclosure practices by mortgage servicers, including robosigning, in which people rapidly signed documents without verifying facts. Five mortgage servicers, including JPMorgan Chase & Co. and Bank of America Corp., last year reached a $25 billion settlement with 49 states and the federal government.
The states’ investigation found an LPS subsidiary engaged in “surrogate signing,” which is the signing of documents by an unauthorized person in the name of another and notarizing those documents as if they had been signed by the proper person, Madigan said. •