"Robo-signing" settlement benefits RI

PROVIDENCE, R.I. (WPRI) -- Rhode Island will receive nearly a half-million dollars from a Florida-based company accused of contributing to the nationwide foreclosure crisis.

On Thursday, Attorney General Peter Kilmartin announced that Rhode Island is one of 45 states and the District of Columbia that reached a $128 million settlement with Lender Processing Services, Inc. over the company's robo-signing practices.

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

According to the Attorney General's Office, many Rhode Island homeowners may have lost their homes to foreclosure because the paperwork was never scrutinized by their lender.

"They were contracting with these robo-signing companies that would come in and just sign thousands of documents without reviewing them to make sure the information was in fact accurate," explained Amy Kempe, spokesperson for the Rhode Island Attorney General's Office.

Kempe says auditors will review all robo-signed paperwork and notify affected Rhode Islanders if any discrepancies are discovered.

"We do believe that there are about 3.5 million documents that were  robo-signed during those three years, 2008, 2009, and 2010 by this company.  It is going to take some time for them to go through those documents and determine if the information is accurate and correct."

As part of the agreement, Lender Processing Services, Inc. will pay $448,000 to the State of Rhode Island, and assist homeowners by correcting documents is executed.