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LPS announces multistate AG settlement, leaving only Nevada unresolved.

Lender Processing Services Inc. (LPS), Jacksonville, Florida, announced on Jan. 31 that it had reached settlement agreements with attorneys general (AG) in 46 states plus the District of Columbia over default processing operations and practices. The multi-state settlement involved an aggregated payment of $127 million by LPS.

The action leaves only the complaint filed by the state of Nevada as the sole unresolved AG inquiry, the company said. The company previously announced settlements with the states of Missouri, Delaware and Colorado involving similar inquiries into its default operations.

The company said that as part of the settlements, LPS confirmed its commitment to perform stronger compliance and oversight of its default operations, and it said it would continue its remediation efforts.

The AG inquiries centered on LPS' default operations, including former document preparation, verification, signing and notarization practices.

In a press release, LPS also stated that it has continued to resolve outstanding civil lawsuits brought against the company. Among the notable cases resolved are a securities fraud litigation suit brought by St. Clair Shores General Employees' Retirement System. On Jan. 28, 2013, LPS settled that case subject to entry of a final order by the federal district court.

LPS also said that in December 2012, the company resolved litigation filed by American Home Mortgage Servicing Inc.

The company said in a press release that it had increased its legal and regulatory reserve in the quarter ending Dec. 31, 2012, by $48 million (which includes $14 million for the securities fraud settlement not previously included in the reserve).

LPS reported that the balance in the company's legal reserve after payment of expenses at the end of last year was $223 million.

Hugh Harris, LPS president and chief executive officer, said, "We look forward to favorably resolving our remaining regulatory and legal issues in the near future."
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Title Annotation:NEWS ROOM
Comment:LPS announces multistate AG settlement, leaving only Nevada unresolved.(NEWS ROOM)
Publication:Mortgage Banking
Date:Mar 1, 2013
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