Editor: David Reiss
Brooklyn Law School

February 6, 2013

$127 Million LPS Robo-Signing Settlement with 47 A.G.s

By David Reiss

The Lender Processing Services, Inc. press release is here.

The $2.5 million Michigan settlement relating to the overall total $127 million settlement can be found here.  In the Michigan settlement, LPS did not admit “any violation of law.” (2)  Nonetheless, there are some interesting admissions, including, that

  • some mortgage loan documents executed by employees of LPS subsidiaries contain “unauthorized signatures, improper notarizations, or attestations of facts not personally known to or verified by the affiant” and some may contain “inaccurate information relating to the identity, location, or legal authority of the signatory, assignee, or beneficiary or to the effective date of the assignment.”  (5)
  • LPS subsidiaries “recorded or caused to be recorded Mortgage Loan Documents with these defects in local land records offices or executed or facilitated execution on behalf of the Servicers knowing some of these Mortgage Loan Documents would be filed in state courts or used to comply with statutory, non-judicial foreclosure processes.”  (5)
  • employees of LPS subsidiaries signed mortgage loan documents in the name of other employees.  (5)

Brad and I discuss the importance of following the letter of the law when dealing with the assignment of mortgage notes in Dirt Lawyers and Dirty REMICs.  It should go without saying that that applies to judicial and non-judicial foreclosure processes as well.  We will be addressing that subject in our forthcoming piece with KeAupini Akina which should be out later this month.

With this latest settlement, only Nevada has an ongoing suit against LPS.

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