Florida to settle in loan servicing case - WFLA News Channel 8

Florida to settle in loan servicing case

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TALLAHASSEE, FL -

Florida and 45 other states along with the District of Columbia will settle a case that stemmed from "robo-signing" on mortgages.

Attorney General Pam Bondi's office announced Thursday it reached the settlement against Lender Processing Services, Inc. and its subsidiaries, LPS Default Solutions and DocX, for $120 million.  Florida's share of the settlement is approximately $8.6 million.

The Attorney General's investigation discovered some questionable business practices on the part of LPS.  Bondi's office said that LPS, which provides technological support to banks and mortgage loan services, used to "robo-sign" important documents, notarize them without a notary present and use a few other inappropriate business techniques.

Bondi's office said, in addition to paying the settlement, LPS will go back and review all the documents from 2008 to 2010 to ensure the proper execution.

Paperwork is being filed Thursday in Hillsborough County.  The courts must then approve of the settlement.

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