Lender Processing Services, Inc. has agreed to pay $250,000 to settle “robo-signing” claims brought by the Delaware Attorney General’s office against the company’s now-defunct subsidiary DocX LLC. The settlement resulted from Delaware’s investigation of fraudulent foreclosure practices that took place in 2008 and 2009. The Delaware Attorney General’s Office accused DocX of preparing and notarizing mortgage-related documents using “surrogate-signers.” The documents, processed for banks and other mortgage servicers, were ultimately filed with the state’s County Recorders of Deeds offices. “Our home mortgage system only works when everyone – homeowners, banks, and the vendors they employ – play by the rules,” said Attorney General Beau Biden in a recent statement. “This agreement helps ensure that these legal documents are what they purport to be and that they can be relied upon.” As part of the settlement, LPS must report quarterly to Biden’s office concerning the status of its compliance with federal mandates. LPS has also agreed to an independent review of its activities and must prepare a plan to make restitution if the review finds evidence of financial harm. This agreement follows a similar LPS settlement with the State of Missouri. In that settlement, LPS also agreed to cooperate with authorities in a still-pending criminal case filed against the former president of DocX.