Fla. gets $8.6M share of 'robo-sign' settlement

Published On: Jan 31 2013 12:05:14 PM EST   Updated On: Jan 31 2013 03:47:23 PM EST
Lender Processing Services
TALLAHASSEE, Fla. -

Florida will get an $8.6 million share of a national settlement with a loan processing company over so-called "robo-signing" and other improper mortgage foreclosure practices.

Attorney General Pam Bondi said Thursday the settlement is with Jacksonville-based Lender Processing Services Inc. and its subsidiaries. The total settlement is $120 million for 46 states and the District of Columbia.

The company provides technological support to banks and mortgage lender services.

Bondi’s investigation of LPS was heavily scrutinized more than a year ago after a former employee had raised questions of impropriety, noting that a former assistant attorney general who worked for Bill McCollum, Bondi’s predecessor, had gone to work for the company.

Bondi's office says Florida's share will go into the state's general fund minus costs for investigation and litigation.

The settlement also requires several changes in how documents are handled. One prohibits "robo-signing," in which a person signs foreclosure documents without first-hand knowledge as required by the law. There will also be enhanced review of fees charged in default transactions and other changes.