Attorney General Dustin McDaniel (D) said that he and 44 other attorneys general have reached a $120 million settlement with a Florida-based company alleged to have engaged in robo-signing of foreclosure documents and other improper conduct related to mortgage loan default servicing.
Lender Processing Services Inc., and its subsidiaries, LPS Default Solutions and DocX, acted on behalf of mortgage servicers to process foreclosure documents, but are alleged to have done so without properly reviewing the documents, a practice known as robo-signing.
“These types of actions contributed to the mortgage crisis, and may interfere with our recovery,” McDaniel said. “Homeowners who face foreclosure should have the confidence that they are being treated fairly, instead of worrying that companies are cutting corners to maximize their own profits. In addition, it is important that new homeowners buying foreclosed property have the confidence that the foreclosure was properly completed.”
Arkansas’ share of the settlement is $692,496. McDaniel filed a lawsuit and proposed consent judgment in Pulaski County Circuit Court today (Jan. 31).
Under terms of the consent judgment, LPS will be required to reform its business practices and, if necessary, correct documents it improperly executed from 2008-2010. The company is prohibited from allowing the signature of documents by unauthorized persons or those without first-hand knowledge of the facts attested to in the documents.
The company is required to set up a toll-free number for consumers to call to request review and correction of documents.
Talk Business Staff
Latest posts by Talk Business Staff (see all)
- Arkansas Poll Finds Cotton, Hutchinson With Sizable Leads - October 30, 2014
- David Couch: Why Arkansas Voters Should OK Alcoholic Beverage Amendment - October 29, 2014
- Brian Richardson: Why Arkansans Should Oppose Far-Reaching Alcohol Amendment - October 29, 2014