Lender Processing Services said Monday it will pay $1.8 million to settle claims by Colorado Attorney General John Suthers that it allowed unauthorized signatures and improper notarizations of mortgage documents.

LPS agreed to pay $1.3 million and reimburse $500,000 in fees and costs to the attorney general’s office for a surrogate signing program in which documents at two subsidiaries, DocX and LPS Default Solutions, were signed without review or personal knowledge of the accuracy of the information.

LPS shut down DocX in April 2010 after evidence surfaced of possible illegal activity. DocX and its founder Lorraine Brown were indicted in February by a grand jury in Boone County, Mo., for alleged forgery of mortgage documents used to evict distressed borrowers from their homes.

The Colorado settlement funds will be used for programs related to foreclosure prevention, loan modification, antitrust enforcement and education in the state.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.