DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced a $1.8 million settlement Monday with the Florida-based Lender Processing Services Inc., a service provider for mortgage loan servicers, resolving allegations of improper document execution practices.
Between January 1, 2008, and December 31, 2010, LPS subsidiaries, LPS Default Solutions Inc. and DocX LLC were authorized by particular residential mortgage loan servicers to sign or assist with the execution of mortgage-related documents. The LPS subsidiaries allegedly used unauthorized signatures and improper notarizations on the documents.
"This settlement with LPS is part of our on-going investigation into all facets of the foreclosure process in Colorado," Suthers said. "It is important that the foreclosure process work as intended and that borrowers and the legal system have confidence in it."
Between March 1, 2009, and November 1, 2009, DocX agents and employees were allegedly directed to implement a program under which some employees could sign mortgage-related documents in the name of other DocX employees. The surrogate signers allegedly executed certain mortgage-related documents in the name of employees who were or had been authorized to sign on behalf of certain mortgage services. The surrogate signers allegedly signed the documents without indicating they were signed by surrogates.
Under the terms of the settlement, LPS and its subsidiaries will no longer engage in any surrogate programs or execute mortgage-related documents without an affiant's review and personal knowledge of the completeness and accuracy of document statements. LPS and its subsidiaries will also make sure that any mortgage-related documents that are executed on behalf of a servicer are done pursuant to verifiable and proper authority on behalf of the servicer.