Fidelity National Unit Nears Settlement Over Robo-Signing Allegations

Posted by on Jan 9, 2017 in Questions and Answers | 0 comments

 

A Fidelity National Financial Inc. subsidiary is in talks to pay as much as $65 million to resolve government accusations that it contributed to fraudulent foreclosures after the 2008 credit crisis. LPS, which provided technology and services to lenders such as Wells Fargo & Co. and JPMorgan Chase & Co., has faced accusations that it filed fraudulent documents used in the repossession of homes. Fidelity National’s Service Link subsidiary is responsible for the new settlement. Service Link has been negotiating with regulators over a probable penalty. Wells Fargo paid $70 million in a similar agreement this year.

Before Fidelity National acquired the Florida-based company in 2014, LPS had already settled with dozens of states for $127 million. It paid another $35 million to settle a Justice Department inquiry in which it was said to have been involved in a “six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents.”

Lorraine Brown, former chief executive officer of LPS’s DocX LLC subsidiary, spent more than three years in prison after pleading guilty to conspiracy to commit mail and wire fraud. Brown, who was released on parole Aug. 31, had been accused by Michigan Attorney General Bill Schuette of establishing “a widespread scheme of ‘robo-signing,’ a practice in which employees were directed to fraudulently sign another authorized person’s name on mortgage documents in order to execute these documents as quickly as possible.”

 

If you need additional info about this or any other legal matter, please call Attorney Linda Fessler at 213-446-6766 for a free consultation.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.