Regulators seeking $65 million in discussions with former LPS
LPS was acquired during five-year talks over foreclosure flaws
A Fidelity National Financial Inc. subsidiary is in final talks to pay as much as $65 million to resolve U.S. government accusations that it contributed to improper and fraudulent foreclosures after the 2008 credit crisis, according to a person familiar with the deal.
Federal banking regulators agreed that a $65 million penalty could settle the case involving so-called robo-signing of foreclosure papers tied to the firm formerly known as Lender Processing Services Inc., according to the person, who requested anonymity because the negotiations aren’t public. Fidelity National acquired the company during the lengthy settlement talks with the Federal Reserve and other agencies, and it has been divided among subsidiaries including ServiceLink Holdings and Black Knight Financial Services.
LPS, which provided technology and services to lenders such as Wells Fargo & Co. and JPMorgan Chase & Co., faced accusations that it filed fraudulent legal documents used in the repossession of homes. For more than five years, LPS has been ensnared by a 2011 order from the Fed, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. requiring changes to how it deals with loan defaults and the hiring of an outside firm to examine its work from 2008 through 2010.