Vermont awarded $371,000 in loan processing lawsuit
MONTPELIER - Vermont will received $371,000 as part of a $120 million multistate settlement reached with Lender Processing Services Inc., the nation's largest provider of support to banks and mortgage loan servicers, the Vermont Attorney General's office announced Tuesday.
The complaint alleges that Lender Processing Services “robo-signed” documents and engaged in other improper conduct related to mortgage loan default servicing.
Once approved by the court, the settlement will require LPS to reform its business practices, and if necessary, to correct documents of individual homeowners to minimize their harm.
“This case follows Vermont's role in the national foreclosure settlement reached in February 2012, to ensure that mortgage foreclosure and loan documents are properly carried out,” Attorney General Sorrell said.
The 2012 case was a comprehensive $25 billion settlement among 49 states and the federal government, addressing widespread mortgage abuses by the nation's five largest mortgage servicers, which brought $6.7 million into Vermont.
As part of its settlement, LPS will review documents from the period Jan. 1, 2008 through Dec. 31, 2010, and correct any deficiencies.
Consumers may call a toll-free LPS number (available on or before March 1) and request review and correction of any documents executed by LPS at any time.
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