competing press releases late Thursday Lender Processing Services, Inc. (LPS)
and the Office of the Missouri Attorney General announced the settlement of
criminal proceedings against an LPS subsidiary.
Attorney General (AG) Chris Koster said LPS will pay the state of
Missouri $2 million to settle indictments against DocX related to the
robo-signing scandal of 2010.
releases reported that the settlement will requirement payment by LPS of $1.5
million to the Missouri state treasury and $500,000 to the Merchandising
Revolving Fund of the AG's Office in reimbursement of the costs incurred in
investigating DocX. The LPS press release,
however, did not mention that, as part of the settlement, it had agreed to
cooperate with the AGs office in a continuing criminal investigation of DocX
founder and former president Lorraine Brown.
LPS terminated Brown in November 2009 and discontinued DocX operations
six months later.
charges against brought by Koster alleged forgery and making false declarations
related to mortgage documents processed by DocX in the state of Missouri. The company was accused of falsely signing,
notarizing, and filing various mortgage documents in the name of senior bank
officers without authorization. A single DocX employee held a position as
designated vice president for several large banks and was authorized to sign
the documents, but they were allegedly signed by others.
the size of the settlement saying that the LPS subsidiary earned approximately
$363,000 in total revenue from the execution and filing of documents within the
state between 2008 and 2010 so the agreed-upon payment was well in excess of
that amount and approximately two and a half times the amount that could be
obtained if convictions were obtained.
also noted that LPS has entered into a separate consent order with three
federal regulators agreeing to a review by an independent consultant of
document execution services provided by DocX and other LPS subsidiaries. The review is intended to assess potential
financial injury to borrowers and to prepare a remediation plan to provide
restitution if harm is found.
settlement is an important milestone in our ongoing efforts to resolve legal
and regulatory issues related to the operations of DocX, which we closed in
2010," said Hugh Harris, president and chief executive officer of LPS.
"LPS remains focused on resolving all remaining legal and regulatory
challenges as expeditiously as possible and is committed to ensuring that we
continue to operate with integrity and compliance in everything we do."
Koster said, "My office has taken
the position that when you sign your name to a legal document, it matters. The monetary disgorgement and the agreement
we have reached in this criminal case with DocX should remind all
mortgage-services processers that our system of titling real property will be
held to a standard of accuracy and truth expected by homeowners across the
"I appreciate LPS taking
responsibility for the actions of its subsidiary, and for their agreeing to
cooperate in our continuing criminal investigation of this matter."