LPS Reaches $127M Deal With States in Foreclosure Probe
January 31, 2013
Lender Processing Services agreed to pay 46 states and the District of Columbia $127 million to settle claims of unlawful foreclosure practices.
The multi-state settlement resolves inquiries surrounding the company’s default operations, including former document preparation, verification, signing and notarization practices of certain operations. The company previously announced settlements of similar inquiries with the states of Missouri, Delaware and Colorado, leaving the complaint filed by the state of Nevada as the only unresolved attorney general inquiry. As part of the settlements, LPS confirmed its ongoing commitment to stronger compliance and oversight of its operations—and to continue its remediation efforts.
“Today’s settlements are another major step toward putting issues related to past business practices behind us,” said LPS President and Chief Executive Officer Hugh Harris. “As LPS continues to grow and exercise its leadership in the mortgage industry, we remain committed to enhanced regulatory compliance and operational excellence, which are crucial in our changing industry.”
As a result of these settlements, as well as progress on other outstanding legal issues, LPS increased its legal and regulatory reserve in the quarter ended Dec. 31, 2012, by $48 million (which includes $14 million for the securities fraud settlement that was not previously included in the reserve). As of Dec. 31, 2012, the balance in the company’s legal reserve, after the payment of expenses, was $223 million.
In addition to the District of Columbia, the states participating in this settlement are: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.