By Megan Banta
Indiana may receive more than $1.6 million in settlement payments as part of a lawsuit against Lender Processing Services.
- Photo by Flickr user Cast a Line
Attorney General Greg Zoeller filed a lawsuit and proposed consent judgment against the Florida-based company Thursday in Marion County court, joining 43 other attorneys general and the District of Columbia in a $120 million settlement.
Zoeller said Indiana's portion of the payment would help fund consumer education efforts and reimburse the office for the cost of the investigation.
The payment would settle charges that the company, which provides technological support services to banks and mortgage loan servicers, committed fraud through "robo-signing" and other similar acts.
"Robo-signing" is when documents contain unauthorized signatures, inaccurate information, or both.
Zoeller said the company's actions violated consumer trust.
"Cases like this erode the public's confidence in the system," he said. "Today's settlement underscores the states' continued efforts to make sure companies are held accountable for their actions and homeownership, one of our most important assets, is protected."
The proposed consent judgment would require that LPS and the companies it controls, LPS Default Solutions and DocX, reform business practices and, if necessary, make corrections to past documents.
The judgment also requires correct documentation, prohibits unauthorized signatures, and requires more oversight of provided services and a review of all third-party fees for reasonability and accuracy.
Once the courts enter the judgment, LPS will begin reviewing about 3.5 million mortgage-related documents executed between Jan. 1, 2008 and Dec. 31, 2010 to determine whether it must re-execute or correct any documents. LPS will periodically report its progress to the attorney general.
Consumers with questions about their records may contact LPS via a toll-free number available at www.lpsvcs.com or the Indiana Attorney General's Office at 1-800-382-5516.
Megan Banta is a reporter for TheStatehouseFile.com, a news service powered by Franklin College journalism students and faculty.