Lender Processing Services Announces Multi-State Attorneys General Settlement;
Significant Civil Litigation Also Resolved
JACKSONVILLE, Fla., Jan. 31, 2013
JACKSONVILLE, Fla., Jan. 31, 2013 /PRNewswire/ -- Lender Processing Services,
Inc. (NYSE:LPS), a leading provider of integrated technology and services to
the mortgage and real estate industries, today announced that it has entered
into settlement agreements with the attorneys general of 46 states and the
District of Columbia.
(Logo: http://photos.prnewswire.com/prnh/20120802/FL50731LOGO )
The multi-state settlement, which includes an aggregated payment by LPS of
$127 million, 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."
LPS has also continued to resolve outstanding civil litigation. Notably, on
Jan. 28, 2013, the company settled the securities fraud litigation brought by
St. Clair Shores General Employees' Retirement System, subject to entry of a
final order by the federal district court. Additionally, in December 2012, LPS
resolved litigation filed by American Home Mortgage Servicing, Inc. (AHMSI).
"We look forward to favorably resolving our remaining regulatory and legal
issues in the near future," said Harris.
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 46 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.
LPS will announce its complete fourth quarter 2012 financial results after 4
p.m. EST on Thursday, Feb. 7, 2013, and will host a conference call at 10 a.m.
EST on Friday, Feb. 8, 2013, to discuss these results.
About Lender Processing Services
Lender Processing Services (NYSE: LPS) delivers comprehensive technology
solutions and services, as well as powerful data and analytics, to the
nation's top mortgage lenders, servicers and investors. As a proven and
trusted partner with deep client relationships, LPS offers the only end-to-end
suite of solutions that provides major U.S. banks and many federal government
agencies the technology and data needed to support mortgage lending and
servicing operations, meet unique regulatory and compliance requirements and
These integrated solutions support origination, servicing, portfolio retention
and default servicing. LPS' servicing solutions include MSP, the industry's
leading loan-servicing platform, which is used to service approximately 50
percent of all U.S. mortgages by dollar volume. The company also provides
proprietary data and analytics for the mortgage, real estate and capital
LPS is a Fortune 1000 company headquartered in Jacksonville, Fla., and employs
approximately 8,000 professionals. For more information, please visit
SOURCE Lender Processing Services, Inc.
Contact: Media contact: Michelle Kersch, +1-904-854-5043,
Michelle.firstname.lastname@example.org; Investor contact: Nancy Murphy, +1-904-854-8640,
Press spacebar to pause and continue. Press esc to stop.