Home >> News >> Data >> LPS Settles With Missouri AG in Signing Errors Case
Print This Post Print This Post

LPS Settles With Missouri AG in Signing Errors Case

""Lender Processing Services, Inc."":http://www.lpsvcs.com/Pages/default.aspx, announced Thursday that an agreement was reached between subsidiary DocX, LLC, and Missouri's state attorney general Chris Koster. The agreement between the parties resulted in a dismissal of criminal charges pending against DocX.

[IMAGE]

In February 2012, Koster obtained criminal indictments against DocX related to its alleged role in the mortgage-document surrogate signing scandal of 2010. A release from the Missouri Attorney General's Office (AGO) alleged that DocX earned approximately $363,000 in total revenue from the execution and filing of mortgage-related documents in Missouri from 2008 to 2010.

Koster obtained the indictments for forgery and making false declarations related to mortgage documents processed by DocX in the state of Missouri. AGO alleged that DocX directed employees to falsely sign mortgage documents in the names of bank VPs without proper authorization.

[COLUMN_BREAK]

DocX then allegedly notarized the documents, which were filed in courthouses across the state.

The terms of the settlement provide for a voluntary contribution of $1.5 million to the state of Missouri. In addition, AGO will receive $500,000 in reimbursement for fees and costs of investigation. In return, the LPS and DocX will be released from any potential liability.

According to AGO's release, LPS also agreed to cooperate with Koster in his continuing criminal investigation of DocX founder and former president Lorraine Brown. LPS terminated Brown's employment in November 2009 and discontinued DocX's operations in May 2010.

""This 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 CEO 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.""

""My office has taken the position that when you sign your name to a legal document, it matters,"" said Koster. ""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 country.""

Koster also expressed appreciation for LPS in taking responsibility for the actions of its subsidiary and for agreeing to cooperate in the continuing criminal investigation.

x

Check Also

CFPB Director Looks Back on 2019

One year after assuming her role as director of the Consumer Financial Protection Bureau, Kathleen Kraninger discusses the CFPB's accomplishments and goals.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.