Colorado will receive $1.8 million as part of a settlement with Lender Processing Services for past document execution practices to mortgage loan servicers.
Attorney General John Suthers said that certain residential mortgage loan servicers asked people employed by LPS subsidiaries to sign or assist with the execution of mortgage-related documents – lost instrument affidavits, deed of trust lien releases, assignments of deeds of trust. Some of those documents generated by LPS contained issues like unauthorized signatures and improper notarizations.
“This settlement with LPS is part of our on-going investigation into all facets of the foreclosure process in Colorado,” said Suthers. “It is important that the foreclosure process work as intended and that borrowers and the legal system have confidence in it.”
Between March 1, 2009 and November 1, 2009, employees and agents of DocX were directed by management of DocX to implement a program under which some DocX employees signed mortgage-related documents in the name of other DocX employees, who were or had been at one time authorized to sign on behalf of certain mortgage servicers. DocX referred to these signers as “surrogate signers,” who then executed certain mortgage-related documents in the name of other DocX employees without indicating that the document had been signed by a surrogate signer.
The settlement funds will be used for programs related to foreclosure prevention, loan modification and housing, to reimburse the Colorado Attorney General’s Office for its attorney fees and costs, and for future consumer protection and antitrust enforcement and education efforts in the state.