ServiceLink Faces $65 million Fines Due to Illicit Foreclosure Practices

by San Antonio Attorney

Lender Processing Services served as a part of a settlement after a dispute between the government and foreclosure misconduct post housing crash.

The massive settlement is a result of missteps in document handling especially in the third-party foreclosure process.  Large-scale banks and mortgage services were involved in the aftermath of the housing crisis.

Other large-scale banks include: Bank of America, Wells Fargo and Citigroup.

Meanwhile, Fidelity National Financial, the former parent company of Lender Processing Services, purchased the company and merged it with ServiceLink Holdings.

The overall merger became Black Knight Financial Services.

However, LPS had its payback when the two merged companies were charged with fines worth $65 million due to improper actions of LPS, which contributed to the 2011 settlement.  The entities involved in filing a case against ServiceLink include Federal Reserve, Federal Deposit Insurance Corp and Office of the Comptroller of the Currency.

The consent order enumerated the financial history of LPS and how the terms and conditions of the original consent were transferred as LPS transitioned to a different company.

The consent order stipulated that Paul Perez, the chief compliance officer of ServiceLink, will be given authorization to the amended order and agree to the fine.

LPS will comply with the $65 million fine and pay directly to the Department of Treasury, according to the agency.

The agency added that the compliance of ServiceLink with the original and amended consent order will be monitored.

Black Knight, Fidelity National and ServiceLink could not be reached for further comment towards the issue.

Black Knight is rumored to be non-compliant with the imposed fine, according to a spokesperson.  The company’s sole reason is based on the fact that the company is not considered as a party to the agreement.

 

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