(The following press release from The Office of Colorado AG John W. Suthers.
The sender verified the statement.)
Colorado Department of Law
Attorney General John W. Suthers
October 29, 2012
Carolyn A. Tyler
ATTORNEY GENERAL ANNOUNCES $1.8M SETTLEMENT WITH LENDER PROCESSING SERVICES
OVER MORTGAGE LOAN SERVICES DOCUMENT PREPARATION
DENVER-Colorado Attorney General John
Suthers<http://www.coloradoattorneygeneral.gov/> today announced that the State
of Colorado will receive $1.8 million as part of a settlement with Lender
Processing Services, Inc. (NYSE: LPS) for past document execution practices by
LPS subsidiaries DocX, LLC and LPS Default Solutions, Inc. Florida-based LPS
provides technology and other services to mortgage loan servicers.
During a period from January 1, 2008 to December 31, 2010, certain residential
mortgage loan servicers authorized specific persons employed by LPS
subsidiaries DocX and LPS Default Solutions to sign or assist with the
execution of mortgage-related documents, including lost instrument affidavits,
deed of trust lien releases, and assignments of deeds of trust. Some of the
mortgage -related documents generated or executed by LPS subsidiaries contained
defects such as unauthorized signatures and improper notarizations.
"This settlement with LPS is part of our on-going investigation into all facets
of the foreclosure process in Colorado," said Suthers. "It is important that
the foreclosure process work as intended and that borrowers and the legal
system have confidence in it."
Between March 1, 2009 and November 1, 2009, employees and agents of DocX were
directed by management of DocX to implement a program under which some DocX
employees signed mortgage-related documents in the name of other DocX
employees, who were or had been at one time authorized to sign on behalf of
certain mortgage servicers. DocX referred to these signers as "surrogate
signers," who then executed certain mortgage-related documents in the name of
other DocX employees without indicating that the document had been signed by a
As part of the settlement, LPS and its subsidiaries agree not to engage in any
surrogate signing program or execute any mortgage-related documents without an
affiant's review and personal knowledge of the accuracy and completeness of the
statements in the documents. LPS and its subsidiaries also will ensure that any
mortgage-related document that is executed on behalf of a servicer is done
pursuant to proper and verifiable authority to sign on behalf of the servicer.
The settlement funds will be used for programs related to foreclosure
prevention, loan modification and housing, to reimburse the Colorado Attorney
General's Office for its attorney fees and costs, and for future consumer
protection and antitrust enforcement and education efforts in the state.
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