A company that provides mortgage technology and processing services has reached a consent judgment to settle with another group of state attorneys general, as part of a nationwide settlement totaling $127 million and covering 46 states and the District of Columbia. Only Nevada continues litigation against the company. The company and its subsidiaries executed loan- and foreclosure-related documents on behalf of loan servicers under a "surrogate signing" arrangement. Allegedly, some documents were executed without authorization from the servicer, without verification of the documents’ accuracy, and without proper notarial acknowledgement—practices often referred to as "robo-signing."
The recent settlement included permanent injunctive relief barring surrogate signing and related practices, interference with legal services that foreclosure and bankruptcy counsel provide to loan servicers, and volume-based employee incentives. The company was further ordered to beef up oversight of its third-party business partners and implement a process for escalating consumer complaints. The settlement also required the company to identify documents executed from 2008 to 2010 "that may require remediation and to remediate those documents."