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Maine to Share in Settlement over 'Robo-Signing' of Mortgage Documents
01/31/2013 01:52 PM ET  

Maine Attorney General Janet Mills says Lender Processing Services, Inc. has agreed to settle the case brought by 45 states and the District of Columbia for $120.6 million, $500,000 of which will go to Maine.

Maine is getting half-a-million dollars as part of a multi-million dollar settlement with a mortgage servicing company over the practice of "robo signing" mortgage documents.

Maine Attorney General Janet Mills says Lender Processing Services, Inc. has agreed to settle the case brought by 45 states and the District of Columbia for $120.6 million.

Mills says the settlement also prohibits the company from using so-called robo-signers and improper notarizations on documents. She says LPS must also go back and correct all the documents it processed from 2008-2010, at the height of the foreclosure crisis.

"This settlement is a judgment in favor of the basic rights of ordinary people in the extraordinarily complex world of mortgage servicing," Mills says in a statement. "With this decision LPS is prohibited from using practices like 'robo-signing' and required to provide consumers with a fair review of their mortgage documents."

Mills says the company's practices led to a high rate of "hastily processed foreclosures" in Maine and elsewhere. She says the money from the settlement will be used to help homeowners avoid foreclosure.




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