Iowa gets $1.1 million in 'robo-signing' deal

February 1, 2013

DES MOINES, Iowa (AP) -- Iowa has been awarded $1.1 million as part of a national settlement involving improper foreclosure conduct by a mortgage processing company.

Attorney General Tom Miller announced Thursday that Iowa is one of dozens of states that will receive some of the $121 million settlement from Lender Processing Services and its subsidiaries. Miller filed a consumer fraud petition in Polk County District Court alleging improper conduct.

The states argued that the Florida company "robo-signed" foreclosure documents. The practice describes banks that automatically sign off on foreclosures without properly reviewing documents.

The company will be required to reform its business practices under the settlement.