JEFFERSON CITY – Missouri has negotiated a $2 million settlement with mortgage-services company DocX and its Jacksonville, FL.-based parent company Lender Processing Services, Inc. following criminal proceedings against the company for extensive document forgery, a practice sometimes referred to as “robo-signing.”
DocX made about $363,000 in revenue between 2008 and 2010 from mortgage and foreclosure documents it filed with courts across Missouri. Missouri Attorney General Chris Koster accused DocX of forging and notarizing the signatures of bank officials without their authorization in order to push through documents that ultimately forced borrowers from their homes.
Lender Processing Services is also under review by the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller to determine the financial impact to borrowers from the company’s handling of documents.
Founder and former president of DocX Lorraine Brown is currently under criminal investigation by the Missouri attorney general’s office. Koster said Lender Processing Services will cooperate with the investigation of Brown.
“My office has taken the position that when you sign your name to a legal document, it matters,” Koster said. “The monetary disgorgement and the agreement we have reached in this criminal case with DocX should remind all mortgage-services processers that our system of titling real property will be held to a standard of accuracy and truth expected by homeowners across the country.”