LPS settles outstanding Attorneys General foreclosure issues for $127 million
Mortgage technology firm Lender Processing Services (LPS) agreed to settle foreclosure documentation and processing issues with 46 different state attorneys general and the District of Columbia for $127 million on Thursday.
"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."
The one-time payment with numerous AGs is another step in the firm's attempt to distance itself from past allegations of mishandling foreclosure and mortgage documents. The company said Thursday's multi-state agreement mirrors past LPS settlements with AGs in the states of Missouri, Delaware and Colorado.
The only unresolved AG inquiry into LPS' practices is pending in the state of Nevada. LPS reaffirmed plans to ensure strong compliance and oversight of operations – as well as its strong commitment to remedy issues of concern.
LPS pointed out that it continues to put outstanding civil lawsuits related to foreclosure processing behind it. In January, the company settled with the St. Clair Shores General Employees' Retirement System over securities fraud litigation. LPS also resolved litigation filed by American Home Mortgage Servicing, the tech firm said.
"We look forward to favorably resolving our remaining regulatory and legal issues in the near future," added Harris.
To handle outstanding litigation issues and settlements, LPS upped its legal and regulatory reserves in the last quarter of 2012 by $48 million.
After paying out expenses, the company's legal/regulatory reserve stood at $223 million in late December.
Along with the District of Columbia, the following states signed onto the settlement with LPS: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.