New Jersey is getting $3.1 million of a proposed $120 multi-state settlement with a company over its “robo-signing” practices.
Attorney General Jeffrey S. Chiesa said Thursday that the settlement resolves allegations that Lender Processing Services and two of its subsidiaries improperly “robo-signed” documents and engaged in prohibited conduct in preparing mortgage-related documents.
The Florida-based company said in a statement that the settlements were a major step toward putting issues related to its past business practices behind it.
Robo-signing is the automatic signing of documents, often en masse, by employees not authorized to do so.
Filed today in New Jersey Superior Court, a Consent Judgment documenting the settlement requires Lender Processing Services, as well as its subsidiaries LPS Default Solutions and DocX, to reform its business practices and, if necessary, correct documents to assist homeowners.
Among other things, the Consent Judgment requires proper execution of mortgage loan documents, and prohibits signature by unauthorized persons, or those without first-hand knowledge of facts attested to in the documents. The settlement also calls for enhanced oversight of default services provided, and a review of all third-party fees to ensure that the fees have been earned and are reasonable and accurate
Consumers who had documents prepared by the company may call an LPS toll-free number and request a review.