COLUMBUS — One of the biggest U.S. mortgage processing companies has agreed to pay $121 million to resolve states’ claims that it wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.
The settlement between Lender Processing Services Inc. and 46 states, including Ohio and Michigan, was announced Thursday.
Under the deal, the company will be required to reform its business practices and to correct foreclosure documents as necessary.
Ohio and Michigan each will receive $2.5 million in relief from the settlement, which will be placed in a fund for programs to provide assistance to families and individuals who are at risk for foreclosure or have already lost their home, officials said.
“The practice of ‘robo-signing’ caused significant damage to many Ohioans during the housing crisis when buyers were sold mortgages that they could not sustain payments on,” Ohio Attorney General Mike DeWine said in a statement.