Three federal banking regulators Wednesday fined ServiceLink Holdings LLC $65 million for improper actions by its former parent company, Jacksonville-based Lender Processing Services Inc., related to mortgage foreclosure processing.
LPS was reacquired by Jacksonville-based Fidelity National Financial Inc. three years ago and while Fidelity spun off most of the former LPS business into a new public company called Black Knight Financial Services Inc., Fidelity retains a 79 percent ownership interest in ServiceLink.
ServiceLink provides various mortgage transaction services.
LPS, which provided processing services for mortgage lenders, was accused of falsifying documents used in foreclosure proceedings.
The company settled a U.S. Justice Department investigation by agreeing to pay $35 million in fines in 2013 and also agreed to pay millions of dollars more in fines to U.S. states.
The announcement Wednesday said the new $65 million fine was for improper actions “which resulted in significant deficiencies in the foreclosure-related services that LPS provided to mortgage servicers.”
The fine was assessed by the Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
ServiceLink agreed to pay the fine, according to the agencies’ order.
In Fidelity’s most recent quarterly report, it said ServiceLink established a loss contingency of $60 million for a possible fine.