Washington to receive $4M from 'robo-sign' settlement

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Washington will receive some $4 million as part of a $120 million multi-state settlement with Florida-based Lender Processing Services and its subsidiaries over "robo-signed" documents and other improper conduct related to mortgage loan default servicing.

The office of Washington Attorney General Bob Ferguson will receive another $433,000 in attorney's costs and fees, Ferguson said in a news release.

The proposed consent judgment was filed Thursday in King County Superior Court, Ferguson said. It requires LPS and its subsidiaries "to completely reform its business practices. It also requires them to correct documents it executed to assist the homeowner if necessary," Ferguson said.

Under the settlement, money will be applied to the state's consumer protection fund or used to defray costs of the inquiry leading to the settlement.

The settlement involved 45 states and the District of Columbia.