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LOCAL EDITION SERVICING LPS Settles Signing Errors Case WRAPPING UP A LEGAL BATTLE RELATED TO DOCX, THE CRIMINAL CHARGES AGAINST THE COMPANY HAVE BEEN DISMISSED. MISSOURI // Lender Processing Services, Inc., announced that an agreement was reached between subsidiary DocX, LLC, and Missouri's state attorney general, Chris Koster. The agreement between the parties resulted in a dismissal of criminal charges pending against DocX. In February, Koster obtained November 2009 and discontinued DocX's operations in May 2010. "This settlement is an impor- tant milestone in our ongoing efforts to resolve legal and regu- latory issues related to the opera- tions of DocX, which we closed in 2010," said Hugh Harris, president and CEO of LPS. "LPS remains focused on resolving real property will be held to a standard of accuracy and truth expected by homeowners across the country." Koster also expressed ap- preciation for LPS in taking responsibility for the actions of its subsidiary and for agreeing to cooperate in the continuing criminal investigation. that United States Appraisals has joined the group's membership. United States Appraisals' standing with the District of Columbia-based MBA is effective immediately. "We are very pleased to align ments for forgery and making false declarations related to mort- gage documents processed by DocX in the state of Missouri. AGO alleged that DocX directed employees to falsely sign mort- gage documents in the names of bank VPs without proper authorization. DocX then allegedly notarized criminal indictments against DocX related to its alleged role in the mortgage-document sur- rogate signing scandal of 2010. A release from the Missouri Attorney General's Office (AGO) alleged that DocX earned ap- proximately $363,000 in total revenue from the execution and filing of mortgage-related docu- ments in Missouri from 2008 to 2010. Koster obtained the indict- the documents, which were filed in courthouses across the state. The terms of the settlement provide for a voluntary contribu- tion of $1.5 million to the state of Missouri. In addition, AGO will receive $500,000 in reim- bursement for fees and costs of investigation. In return, LPS and DocX will be released from any potential liability. According to AGO's release, LPS also agreed to cooperate with Koster in his continuing criminal investigation of DocX founder and former president Lorraine Brown. LPS termi- nated Brown's employment in 56 | THE M REPORT all remaining legal and regula- tory challenges as expeditiously as possible and is committed to ensuring that we continue to op- erate with integrity and compli- ance in everything we do." "My office has taken the posi- United States Appraisals Joins Trade Group tion that when you sign your name to a legal document, it matters," said Koster. "The mone- tary disgorgement and the agree- ment we have reached in this criminal case with DocX should remind all mortgage-services pro- cessers that our system of titling INITIATING A RELATIONSHIP WITH THE MBA, THE APPRAISAL COMPANY HAS BEEN ADDED TO THE ORGANIZATION'S MEMBERSHIP ROSTER. DISTRICT OF COLUMBIA // The Mortgage Bankers Association (MBA) is welcoming a new partner, recently announcing ourselves with an organization like the MBA," stated Aaron Fowler, president of United States Appraisals. "Our nation- wide reach and commitment to quality and compliance aligns perfectly with the objectives of this organization. Our sole focus on appraisal management and absolute dedication to person- alized customer service will provide a fresh and valuable resource to MBA members." "With over 10 years in business and a management team with over 120 years of appraisal experience, our team fully understands the needs of its mortgage clients," noted Chris Purcell, CFO for United States Appraisals. "We are using that experience to develop a proprietary technology platform that will provide a streamlined workflow, saving our clients time and money. We believe these efficiencies will provide a benefit to all MBA members and we look forward to the partnership," added Purcell. Regulatory Agency Releases Enforcement Study QUARTERLY STATISTICS FROM THE PENNSYLVANIA DEPARTMENT OF BANKING REVEAL DATA ON MORTGAGE- RELATED FRAUDULENT ACTIVITY IN THE STATE. PENNSYLVANIA // The Pennsylvania Department of Banking has released its most recent quarterly data on en- forcement actions taken by the organization. Second-quarter findings show that the depart- ment grappled with 92 incidents during the period. CONTINUED ON PAGE 58 SECONDARY MARKET ANALYTICS SERVICING ORIGINATION