Lender Processing paying $121M to resolve claims

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Associated Press

Posted on January 31, 2013 at 3:00 PM

Updated Thursday, Jan 31 at 3:02 PM

One of the biggest U.S. mortgage processing companies has agreed to pay $121 million to resolve states' claims that it wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.

The settlement agreements between Lender Processing Services Inc., based in Jacksonville, Fla., and 46 states and the District of Columbia were announced Thursday.

They follow similar agreements totaling $6 million that Lender Processing signed previously with Colorado, Delaware and Missouri. The company says that leaves Nevada's complaint as the only unresolved state case.

The state attorneys general alleged that the company engaged in unlawful practices including "robo-signing," in which it automatically signed off on foreclosures without properly reviewing documents.

Lender Processing said it increased its legal reserve by $48 million in the quarter ended Dec. 31.

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