JACKSONVILLE, Fla., Aug. 23, 2011 /PRNewswire/ -- Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, noted that it was surprised to learn that American Home Mortgage Servicing, Inc. ("AHMSI") announced earlier today the filing of a lawsuit against LPS and its subsidiary DOCX, LLC concerning issues related to the surrogate signing practice at DOCX. As LPS has previously disclosed, when it discovered the practice at DOCX, LPS immediately notified AHMSI of its discovery of the practice; immediately discontinued the practice; and voluntarily reviewed and remediated assignments of mortgage executed by DOCX using this practice. Upon completion of the remediation in January 2010, and at AHMSI's direction, LPS returned the remediated documents to the attorneys who had originally requested them on AHMSI's behalf.
Since that time, LPS has engaged in several discussions with AHMSI concerning the impact of the surrogate signing practice and has offered to reimburse AHMSI for fees and costs associated with AHMSI's evaluation and re-recording of the remediated assignments of mortgage. During those discussions, LPS also offered to address any additional claims by AHMSI for any other actual losses resulting directly from the assignments of mortgage executed on AHMSI's behalf using the surrogate signing practice. Unfortunately, to date, AHMSI has refused to provide information evidencing such actual losses.
Although LPS regrets AHMSI has resorted to litigation, LPS remains ready to review any demands made by AHMSI to the extent AHMSI is willing to provide evidence supporting those claims. Notwithstanding LPS's willingness to resolve these issues amicably, LPS disagrees with the allegations contained in the complaint and is prepared to vigorously defend against them.
About Lender Processing Services
Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology, services and loan performance data and analytics to the mortgage, consumer lending, capital markets and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation, portfolio retention and default, augmented by the company's award-winning customer support and professional services. Almost half of all U.S. mortgages are serviced using LPS' Mortgage Servicing Package (MSP). For more information about LPS, visit www.lpsvcs.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements are based on management's beliefs, as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: our ability to adapt our services to changes in technology or the marketplace; the impact of adverse changes in the level of real estate activity (including among others, loan originations and foreclosures) on demand for certain of our services; our ability to maintain and grow our relationships with our customers; the effects of our substantial leverage on our ability to make acquisitions and invest in our business; the level of scrutiny being placed on participants in the foreclosure process; risks associated with federal and state inquiries and examinations currently underway or that may be commenced in the future with respect to our default management operations, and with civil litigation related to these matters; changes to the laws, rules and regulations that regulate our businesses as a result of the current economic and financial environment; changes in general economic, business and political conditions, including changes in the financial markets; the impact of any potential defects, development delays, installation difficulties or system failures on our business and reputation; risks associated with protecting information security and privacy; and other risks and uncertainties detailed in the "Statement Regarding Forward-Looking Information," "Risk Factors" and other sections of the Company's Form 10-K, the Company's subsequent reports on Form 10-Q and other filings with the Securities and Exchange Commission.
SOURCE Lender Processing Services, Inc.