R.I. to receive $450K from LPS settlement

RHODE ISLAND will receive $447,965 from a $128 million multi-state settlement from Lender Processing Services Inc. over improper foreclosure practices during the financial crisis.
Posted 1/31/13

PROVIDENCE – Rhode Island is slated to receive nearly $450,000 from a $128 million multi-state settlement from Lender Processing Services Inc. to resolve claims of improper foreclosure practices, including the “robo-signing” of documents.

The $128 million settlement, which involves 45 states and the District of Columbia, will settle allegations that LPS and its subsidiaries – LPS Default Solutions and DocX – for the company’s activities during the country’s foreclosure crisis.

“There is no question that companies engaged in suspect activities during the housing crisis, most notably robo-signing, in which foreclosures took place based on unreviewed or forged documents,” Attorney General Peter F. Kilmartin said in prepared remarks. “Today’s settlement punishes the nation’s largest robo-signing service provider and sets new standards and practices in place to ensure the practice does not occur in the future.”

Under the terms of the settlement, LPS will pay the state of Rhode Island $447,965.

The agreement also requires LPS to correct faulty foreclosure paperwork as necessary. The settlement prohibits people without first-hand knowledge of facts attested in foreclosure documents to sign them. Before being approved, documents will require a review of third-party fees.

“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,” Illinois Attorney General Lisa Madigan said in a statement.

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

Once the judgment is entered by the courts, LPS will review documents executed from Jan. 1, 2008, to Dec. 31, 2010, to determine what documents, if any, need to be re-executed or corrected.

This article was written with assistance from Bloomberg News.

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