A $121 million unlawful foreclosure practices settlement has been reached between large bank mortgageprocessor LenderProcessing Services Inc. and the attorneys general from 46states and the District of Columbia.

LPS is required to pay out $127 million to plaintiffs to resolveallegations the Jacksonville, Fla.-based company “robo-signed”documents and engaged in other improper conduct related to mortgage loan defaultservicing.

The settlement prohibits signatures by unauthorized persons orthose without first-hand knowledge of the facts attested to infiled documents, enhances oversight of the default servicesprovided, and requires review of all third-party fees to ensurethat the fees have been earned and are reasonable and accurate.

“Today's settlements are another major step toward puttingissues related to past business practices behind us,” said LPSPresident/CEO Hugh Harris. The company, which claims the majorityof the 50 largest banks in the U.S. as its clients, is workingthrough additional lawsuits.

On Jan. 28, 2013, LPS also settled the securities fraudlitigation brought by St. Clair Shores General Employees'Retirement System, subject to entry of a final order by the federaldistrict court. Additionally, in December 2012, LPS resolvedlitigation filed by American Home Mortgage Servicing Inc. “We lookforward to favorably resolving our remaining regulatory and legalissues in the near future,” Harris said.

Once the judgment is entered by the courts, LPS will undertake areview of documents executed during the period of Jan. 1, 2008, toDec. 31, 2010 to determine what documents, if any, need to bere-executed or corrected.

If LPS is authorized to make the corrections, it will do so andwill make periodic reports to the attorneys general of the statusof its review and/or modification of documents.

Consumers may call LPS and request review and correction of anydocuments executed by LPS during any time period.