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NJ to get $3 million in 'robo-signing' settlement

TRENTON, N.J. (AP) -- New Jersey is getting $3.1 million of a proposed $120 multi-state settlement with a company over its "robo-signing" practices.

Attorney General Jeffrey S. Chiesa said Thursday that the settlement resolves allegations that Lender Processing Services and two of its subsidiaries improperly "robo-signed" documents and engaged in prohibited conduct in preparing mortgage-related documents.

The Florida-based company said in a statement that the settlements were a major step toward putting issues related to its past business practices behind it.

Robo-signing is the automatic signing of documents, often en masse, by employees not authorized to do so.

The settlement both punishes LPS and sets new standards to prevent future abuses.

Consumers who had documents prepared by the company may call an LPS toll-free number and request a review.