For Immediate Release
January 31, 2013
James T. Boffetti, Senior Assistant Attorney General
David Rienzo, Assistant Attorney General
Consumer Protection and Antitrust Bureau
Attorney General Michael A. Delaney today announced that New Hampshire has joined with 43 other states and the District of Columbia in a $120 million multi-state settlement with Lender Processing Services, Inc. and its subsidiaries, LPS Default Solutions and DocX. The proposed consent judgment resolves allegations that the Jacksonville-based company, which primarily provides technological support to banks and mortgage loan servicers, "robo-signed" documents and engaged in other improper conduct related to mortgage loan default servicing. When entered by the court, the judgment would require LPS and its subsidiaries to reform its business practices and, if necessary, to correct documents it executed to assist the homeowner. Based on the number of documents executed by LPS and its subsidiaries during the relevant period of time, New Hampshire's share of settlement is $457,961.00. The lawsuit and proposed consent judgment are being filed today in Merrimack County Superior Court in Concord.
"Among the most egregious practices during the recent foreclosure crisis was the robo-signing of foreclosure documents. This settlement requires those firms who were responsible for much of that activity to pay for their illegal practices and to correct the documents that they improperly executed. We hope that this settlement will let others know that New Hampshire takes the threats to the integrity of such documents seriously, and will cause anyone intending to engage in similar practices in the future to think twice before doing so," Attorney General Delaney said.
Among other things, the consent judgment will require proper execution of documents and prohibit signature by unauthorized persons or those without first-hand knowledge of facts attested to in the documents, enhanced oversight of the default services provided, and a review of all third-party fees to ensure that the fees that have been earned are reasonable and accurate.
Once judgment has been entered by the courts, LPS will undertake a review of the documents executed during the period of January 1, 2008 and December 31, 2010 to determine what documents, if any, need to be re-executed or corrected. If LPS is authorized to make the corrections, it will do so, and will make periodic reports to the Attorney General of the status of its review and/or modification of documents. LPS is also in the process of setting up a toll-free telephone line that consumers will be able to use at any time to request review and correction of any documents executed by LPS.
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301