(The following is a reformatted version of a press release
issued by the Office of Attorney General Lisa Madigan and
received via electronic mail. The release was confirmed by the
January 31, 2013 
States Announce Settlement with Lender Processing Services Over
“Robo-signing” & Other Faulty Practices Against Homeowners in
Chicago -- Attorney General Lisa Madigan today joined with 45 of
her counterparts to announce a $120 million settlement with
Lender Processing Services Inc. (LPS) over allegations that the
Florida firm engaged in pervasive “robo-signing” of foreclosure
documents and other faulty servicing practices while servicing
loans of struggling homeowners. 
Madigan and the attorneys general reached the settlement after
an investigation into the Jacksonville, Fla.-based firm and its
subsidiaries - LPS Default Solutions and DocX, all of which
primarily provide support to banks and mortgage loan servicers. 
The attorneys general allege LPS and its subsidiaries engaged in
widespread “robo-signing,” of foreclosure documents and other
fraudulent handling of foreclosure proceedings against
homeowners. The states’ investigation revealed a practice by
DocX of so-called “surrogate signing,” or the signing of
documents by an unauthorized person in the name of another and
notarizing those documents as if they had been signed by the
proper person, in addition to other fraudulent practices during
foreclosure filings. 
“Today we’ve taken another step forward to hold accountable the
many players in the marketplace who contributed to the
foreclosure crisis,” Madigan said. “LPS and its subsidiaries
became a sort of document factory, literally rubber stamping
thousands of foreclosures with no regard for fairness and
accuracy in the process.” 
A lawsuit and proposed consent judgment was filed in Cook County
Circuit Court that requires LPS and its subsidiaries to reform
business practices and, if necessary, correct faulty documents
it filed in homeowner foreclosure proceedings. Illinois’ share
of the settlement is more than $4 million. 
The settlement will prohibit LPS from signing off on foreclosure
documents with signatures of unauthorized people or people
without firsthand knowledge of facts attested to in the
documents. The agreement will also require LPS implement
enhanced oversight and review all third-party fees to ensure the
fees have been earned and are reasonable and accurate. 
The settlement also will: 
Prohibit LPS and its subsidiaries from engaging in the practice
of surrogate signing of documents; 
Ensure LPS has proper authority to sign documents on behalf of a
Require LPS to accurately identify the authority that the signer
has to execute the document and where that signer works; 
Prohibit LPS from notarizing documents outside the presence of a
notary and ensure that notarizations will comply with applicable
Prohibit LPS from improperly interfering with the attorney-client relationship between attorneys and servicers; 
Prohibit LPS from incentivizing or promoting attorney speed or
volume to the detriment of accuracy; 
Require LPS ensure that foreclosure and bankruptcy counsel or
trustees can communicate directly with the servicer; 
Require LPS to implement enhanced oversight and review of
processes over third parties it manages, including entities that
perform property preservation services; 
Prohibit LPS from imposing unreasonable mark-ups or other fees
on third party providers’ default or foreclosure-related
Require LPS to establish and maintain a toll-free phone number
for consumers concerning document execution and property
preservation services (including winterization, inspection,
preservation, and maintenance); and 
Require LPS to modify mortgage documents that require
remediation when LPS has legal authority to do so and when
reasonably necessary to assist a consumer or when required by
state or local laws. 
Once the judgment is entered by the court, LPS must review
documents that were executed between Jan. 1, 2008 through Dec.
31, 2010, to identify documents that need to be corrected. Any
corrections required of LPS will be reported to the attorneys
Joining Madigan in today’s announcement were attorneys general
from: Alabama, Alaska, Arizona, Arkansas, California,
Connecticut, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts,
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, Wyoming and the
District of Columbia. 
Assistant Attorneys General Vaishali Rao and Andrew Dougherty
handled the case for Madigan’s Consumer Fraud Bureau. 
Media Contact:
Maura Possley
Follow OAG on:
(bjh) NY 
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