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Prudential Regulators Fine ServiceLink for $65 Million
On Tuesday, January 24, 2017, the OCC, Federal Reserve, and FDIC entered into consent order with Servicelink to resolve certain outstanding requirements placed on Lending Processing Services (LPS) under a pre-existing consent order. In April of 2011, LPS entered into a consent order with the prudential regulators following allegations of unsafe or unsound practices in providing default management services, e.g., foreclosure services, to financial institution clients. ServiceLink became the successor to the 2011 consent order in 2014 when it acquired LPS’s default management subsidiaries and affiliates. In this consent order, ServiceLink agreed to pay a $65 million penalty in lieu of conducting the independent consultant reviews set out in the 2011 consent order.