Illinois and 44 other states have settled foreclosure "robo-signing" allegations with Lender Processing Services Inc.
The $120 million settlement follows an investigation by state attorneys general that found that Jacksonville, Fla.-based firm and two of its subsidiaries, LPS Default Solutions and DocX, improperly handled foreclosure documents. Like other "robo-signing" investigations, the states concluded that LPS allowed documents to be signed by authorized people, in the name of others, and notarized those foreclosure documents as if they had been signed by the authorized person.
"LPS and its subsidiaries became a sort of document factory, literally rubber stamping thousands of foreclosures with no regard for fairness and accuracy in the process," said Illinois Attorney General Lisa Madigan.
Under the agreement, LPS and its companies must change their business practices and correct faulty foreclosure documents it filed between Jan. 1, 2008 and Dec. 31, 2010.
Illinois' share of the settlement is more than $4 million, Madigan's office said.
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