LPS posts $38M 2Q net loss, settles with Missouri
JACKSONVILLE, Fla. – Mortgage data company Lender Processing Services Inc. said Thursday it recorded a $37.9 million net loss for the second quarter after beefing up its legal reserve amid ongoing costs involving its DocX subsidiary.
The company said it had set aside an additional $144.5 million in its legal and regulatory reserve in the quarter.
The earnings report came as the nation’s largest mortgage processor announced a settlement with the state of Missouri resulting in a dismissal of criminal charges against DocX. That unit, which was shut down in 2010, had been accused of using fake signatures on phony foreclosure documents.
Missouri had filed criminal charges against the firm and its founder in February, saying it falsified 68 notarized deeds on behalf of mortgage lenders.