The State of Alabama will receive $1,039,078 in a multi-state settlement with a Florida company, according to Attorney General Luther Strange. Alabama’s share of the settlement will be used for consumer protection. Lender Processing Services, based in Jacksonville, Fla., and its subsidiaries, will pay a total of $120 million to 46 states and the District of Columbia. Attorney General Strange had this to say about the settlement in a news release:
I am pleased that this settlement will set high standards for proper servicing of mortgages and will protect consumers from harm that could result from potentially abusive practices. This agreement provides important safeguards and provides a process to seek remedy for erroneous actions that may have occurred.
Our sister states of Georgia and Florida were also involved in the settlement. Georgia will receive about $4.1 million with Florida’s share of the settlement being about $8.6 million. The settlement resolves allegations that the company “robo-signed” documents and engaged in improper conduct related to mortgage loan default servicing. The company provides technological support to banks and mortgage loan servicers.
Lender Processing Services had previously reached similar settlements with Missouri, Delaware and Colorado, leaving the state of Nevada with the only unresolved lawsuit. The settlement also requires Lender Processing Services and its subsidiaries – LPS Default Solutions and DocX – to reform their business practices. The company is required to review documents executed between Jan. 1, 2008, and Dec. 31, 2010, to determine which ones need to be redone or corrected.
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