West Virginia Joins $113 Million Multi-State Settlement with Lender Processing Services
CHARLESTON – West Virginia Attorney General Patrick Morrisey announced today that West Virginia has joined 44 states and the District of Columbia in reaching a $113 million multi-state settlement with Lender Processing Services, Inc., and its subsidiaries, LPS Default Solutions and DocX.
A proposed consent order resolves allegations that the Jacksonville-based company, which primarily provides technological support to banks and mortgage loan services, “robo-signed” documents and engaged in other improper conduct related to mortgage loan default servicing. If approved by the Kanawha County Circuit Court, the order will require LPS and its subsidiaries to reform its business practices and, if necessary, to correct documents it executed to assist homeowners.
Under the terms of the settlement agreement, West Virginia will receive approximately $203,595.00. The settlement money will only be used for litigation and administrative costs and services incurred for consumer protection purposes, and for appropriation by the Legislature and/or distribution to taxpayers and/or consumers.
“The mortgage crisis has affected far too many families. I am pleased that LPS is willing to enhance its practices to ensure all foreclosure proceedings are strictly followed,” said Attorney General Patrick Morrisey.
Ultimately, the settlement agreement will provide, among other things, enhanced oversight of default services provided by the defendants, and a review of third-party fees to ensure that fees have been earned and are reasonable and accurate.
Once the judgment is signed by the court, LPS will review documents executed during the period of January 1, 2008 to December 31, 2010 to determine if documents need to be re-executed or corrected. LPS will also make periodic reports to the Attorney General of the status of its review and/or modification of documents. Consumers may also call the LPS toll-free number and request review and correction of any documents executed by LPS at any time.