February 14, 2014
$5.5 Million for the State
Carson City, NV – Attorney General Catherine Cortez Masto announced today that her office has reached a settlement with Lender Processing Services, Inc. (“LPS”), now known as Black Knight Financial Services. The settlement and mutual release resolves the State’s civil action alleging LPS violated the Nevada Deceptive Trade Practices Act, and all other outstanding issues or claims related to the litigation.
“The provisions contained in the settlement will ensure integrity in the foreclosure process in Nevada. We acknowledge Fidelity National Financial’s commitment and leadership in this role,” said Masto.
Nev. originally elected not to join a multi-state settlement agreement LPS previously signed with the other 49 states. LPS was recently acquired by Fidelity National Financial, Inc. (“Fidelity”), opening the door for renewed negotiations. With Fidelity’s acquisition of LPS last month, Nev. has been given new assurances of accountability by LPS. Under the settlement terms, LPS will pay Nev. approximately $5.5 million and $500,000 in attorney fees and costs. When measured against the multi-state settlement, Nev. will be receiving the fourth highest settlement in the nation behind Calif., Fla. and Texas. In addition to the monetary provisions, the agreement also provides for permanent injunctive relief and assurances of continued compliance with Nev. law.
By reaching a settlement in this matter, the parties were able to include terms of injunctive relief to benefit Nevada homeowners. Under these terms, LPS will undertake a review of documents executed between January 1, 2008, and December 31, 2010, to determine what documents, if any, need to be re-executed or corrected. Periodic reports of this review and modification of documents will also be made to the Nevada Attorney General. LPS has set-up a toll-free number, 1-866-854-8935, which Nevadan homeowners can call and request review and correction of any documents executed by LPS.
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