The fine, assessed by the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, satisfies a provision of a previous consent order against Lender Processing Services. The fine will be paid to the U.S. Treasury.
The problem here is obvious: How can the FED, FDIC, and OCC fine the perpetrators of fraud in the courts without also revealing their administrative finding that the transactions were nonexistent and that the foreclosures were without basis?
The second problem is the obvious unasked and unanswered question: why was it necessary to resort to fraud and forgery if the base transactions (the originations) were true and valid?
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LPS had faced accusations for a number of years that the company and its subsidiaries fraudulently signed legal documents used in foreclosure proceedings. Fidelity National acquired LPS in 2014, and the company’s business was split between ServiceLink and Black Knight Financial Services, which is shielded from a fine through an agreement with ServiceLink.
Before being bought by Fidelity National, LPS reached a $127 million settlement with state regulators and paid $35 million to settle a Justice Department inquiry.