LPS: Docx practice discontinued 2 years ago
Lender Processing Services (LPS) said varying signature styles from its subsidiary, Docx, resulted from a Docx practice that has been discontinued and only affected two lenders/servicers. LPS went on the offensive Monday noting in a press statement that it has not executed affidavits with substantive information on behalf of its clients since 2008, and said it has been mischaracterized in the media in terms of its default-related services. "The varying signature styles (at Docx) resulted from a decision made by the manager of Docx to allow an employee to sign an authorized employee’s name with his or her express written consent. LPS was unaware of this practice," the company said. "As previously reported, upon learning of it, LPS immediately took remedial actions to correct all assignments of mortgage signed in this manner and provided these corrected assignments of mortgage to the two lender/servicer clients or their attorneys. LPS continues to believe this will not have a material adverse impact on its business or results of operations." Docx represents less than 1% of LPS' annual revenue, the company said. LPS has not executed affidavits containing substantive borrower information on behalf of its clients since September 2008, the company said Monday. "When LPS performed this service, affidavits were prepared and provided by the lenders’ or servicers’ attorneys. These affidavits were then executed by LPS consistent with industry practice, under corporate resolution," the Jacksonville, Fla.-based firm said. "LPS had processes in place to ensure the information in the affidavits was validated and that the affidavits were signed properly." Nationally, stories involving major lenders, including Ally Financial, JPMorgan Chase (JPM) and Bank of America (BAC) have focused on sloppy procedures in the filing of key documents in foreclosure cases with some suggesting this could be the tip of the iceberg. The above three lenders recently halted foreclosures in 23 states that have a judicial process for foreclosure as they review foreclosure cases and the alleged use of "robo-signers," or people with no key knowledge of the case signing off on foreclosure affidavits. Write to Kerry Curry.