Pa. could get $3.4M in wrongful foreclosures settlement
One of the nation's biggest mortgage processing companies agreed to pay $121 million to resolve states' claims that it wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.
The settlement agreements between Lender Processing Services Inc., of Jacksonville, Fla., and 46 states and the District of Columbia were announced Thursday.
Pennsylvania's share of the settlement is $3.4 million if approved by Commonwealth Court.
Lender Processing Services operates a production center, Lenders Service Inc. at 700 Cherrington Parkway in Moon, that employs about 700.
Under the settlement, the company will be required to reform its business practices and to correct foreclosure documents as necessary. The agreement prohibits unauthorized people or those without first-hand knowledge of the facts laid out in documents to sign them.
The settlement follows similar accords totaling $6 million that Lender Processing signed previously with Colorado, Delaware and Missouri. The company says that leaves Nevada's complaint as the only unresolved state case.
The state attorneys general alleged that the company engaged in unlawful practices including “robo-signing,” in which it automatically signed off on foreclosures without properly reviewing documents.
As part of the settlement, a toll-free telephone line will be established where homeowners can call to determine whether they are involved in the settlement. That number should be available within 10 to 15 days, and be published on the Pennsylvania Attorney General's website, said John Abel, senior deputy attorney general. There will be no timeline on how long the line will be available, he said.
Each case will be looked at individually and if mediation is necessary, that could follow, he said. The company will be required to correct documents as necessary.
Lender Processing said it increased its legal reserve by $48 million in the quarter ended Dec. 31. The balance of the reserve was $223 million as of Dec. 31, the company said.
The Associated Press and Trib Total Media staff writer Sam Spatter contributed to this report.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Kennametal plans plant closings, job cuts in fallout from oil and gas decline
- Consol Energy posts $74M profit in fourth quarter
- Pipeline companies weather downturn in prices of natural gas, oil
- BNY Mellon is putting iconic Citizens Bank Tower up for sale
- BNY Mellon expands role for treasury exec
- Credit card privacy a myth, study shows
- Almost half of households exhaust their income
- Wolf signs ban on new drilling beneath state land
- Alibaba finally called out on counterfeits
- Fight to lift crude export ban grows
- McDonald’s works to recapture golden status