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IN T HE C IR CU IT

COURT

OF

COOK

COUNTY,

ILLINOIS

COUNTY DEPARTMENT, CHANCERY

DIVISION

THE

PEOPLE

OF THE STATE OF

ILLINOIS,

Plaintiff,

Case

No.

12 CH 03602

V.

NATIONWIDE

TITLE

CLEARING,

INC.,

a

Florida

corporation,

Defendant.

FINALCONSENT DECREE

I.

Plaintiff,

t h e P e o p le of t h e S t a t e of

Illinois,

b y Lisa M a d i g a n , Attorney

Genera l

of I l l inois, h a s

f i led

a compla in t (

the

Complaint )

fo r a permanent in junction

a n d

othe r relief in

th is m a tte r

pur suan t to th e Consume r F rau d and Decept ive Bu s ines s P ract ic es

Act(

Consumer

Fraud

Act ),

alleging tha t th e Defendant, Nationwide Title Clearing, Inc.

th e

Defenda n t ) v io la ted

th e

C on s um e r F r au d

A c t

and

th e

Uniform

Decep t i ve

Trade

P r a c t i c e s A ct in t h e

c o u r s e

of i t s b u s in e s s of c r e a t i n g , s i g n i n g , a n d r e c o r d i n g d o c u m e n t s

in

th e public

la n d r e co rd s sys tem

in Illinois on beh a l f of f i nanc ia l

ins t i tu t ions

or m o r t g a g e

se r v i c e r s within th e m o r tg a g e in d u s tr y .

2.

Pla in t i f f a n d Defendant,

by

the i r c o u n s e l , h a v e

a g r e e d

to t h e entry of th is Fina l

Consent

D e c r e e

by t h e Court,

without

t r ial

or adjudication

of a n y i s s u e of fact or law. This

Final

C o n s e n t D e c r e e

is

e n t e r e d

into

by

t h e

parties t o

promptly

a n d

completely

resolve

this

controversy

andavod

the

costsof

further

litigation.

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3.

T h i s

F i n a l

C o n s e n t D e c r e e i s e n t e r e d i n to

o n l y

f o r t h e p u r p o s e o f

r e s o l v i n g

t h e

i s s u e s r a is e d in

th e C o m p l a i n t .

It d o e s n o t b i n d

a n y

o t h e r o f f i c e r s o r

a g e n c i e s

of

t h e

S t a t e

of

I l l i n o i s

n o r

d o e s

it

in

a n y

w a y r e s t r i c t

o r

a f f e c t

D e f e n d a n t

s

a b i l i t y

t o

d e f e n d

i t s e l f

a g a i n s t

a ny o th e r c la im s

b r o u g h t

b y a ny on e

n o t a p a r t y t o t h i s

l i t i g a t i o n . T h e I l l i n o i s A t t o r n e y

G e n e ra l h e re b y

r e l e a s e s

D e f e n d a n t of

a n y

c l a i m b a s e d o n f a c tu a l a l le g a t io n s of

th e

t y p e

d e s c r i b e d

in Plaintiffs

C o m p l a in t o c c u r r in g

p r i o r t o

th e

d a t e

of t h i s

C o n s e n t D e c r e e

u n d e r

t h e

Illinois

C o n s u m e r F r a u d A ct o r h e r c o m m o n l a w a u t h o r it y .

4.

n

cknwg

t

the mand

condtions

o

this

Defenda

Final

Consent

o

Defendant

has

further

understands

und

the legal obligations

imposed

upon

it

by

this

Final

t

Consent

led

and

understands

that

a

rstood

voation

ter

o

s

this Final

C o n s e n t

D e cre e m a y r e s u l t

in p r o ce e d in g s a g ain s t D e f e n d a n t ,

i n c l u d i n g a n a c t i o n

f o r

contempt

of

court.

NO ADMISSION OF LIABILITY

5.

Pla in t i f f

an d

Defendant c o n s e n t to this Final Consent Dec ree

without

a n

a d m i s s i o n of

l i a b i l i t y

o n

th e p a r t

of

th e

D e f e n d a n t . T h e

P l a i n t i f f a n d D e f e n d a n t a re

s e t t l i n g

t h i s

ma t t e r so a s to avo id th e r isks and

expenses

assoc ia ted with

f u r t h e r

litigation.

FINDINGS

6.

With

t h e

c o n s e n t of t h e

p a r t i e s a n d t h e C o u r t b e in g fully

a d v i s e d of t h e

m a t t e r ,

th e Court

h e r eb y

f inds as follows:

a

Th i s C ou rt has jur isd ict ion over

th e

subject mat te r

of th e

Compla in t f i l ed

he re i n

and over

th e

p a rtie s to

th is

F ina l Consent Dec ree .

b.

Th e Defendan t

h a s a t

a ll

t imes

re levant hereto, engaged in

trade

and

c o m m e r c e

within th e m e a n i n g of

th e

Sect ion 1

f)

of

th e

C on s um e r F r au d

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A c t ,

8 1 5

I L C S 5 0 5 /

f ) ,

b y c re a t in g ,

s i g n i n g ,

a n d

r e c o r d i n g

d o c u m e n t s

in

county

recording offices

throughout Illinois.

NON-

MONETARY

TERMS

7.

O n t h e b as is of t h e s e f i n d i n g s a n d

f o r

th e

p u r p o s e

of e n t e r i n g t h i s

F i n a l

C o n s e n t D e c re e ,

I T

IS H E R E B Y O R D E R E D

t h a t D e f e n d a n t, i t s

a g e n t s , e m p l o y e e s , a n d a l l

persons or entities a s s o c i a t e d , affi l iated

or

connected

with Defendant,

and a n y s u c c e s s o r

corporation or b u s i n e s s

entity

s h a l l , a s of t h e effective d a t e of t h i s

Final

C o n s e n t D e c r e e ,

comply

with and r e m ain in c om p lia n ce with Section

2

t h e

Consumer

Fraud A ct

an d

Section

2 of t h e Uniform D e c e p t i v e

T r a d e P r a c tic e s Act.

S p e c i f i c a l l y ,

t h e D e f e n d a n t ,

i t s a g e n t s ,

emp loyees , and a ll persons

or

ent i t ies associated,

aff i l iated or connected with

Defendant , and

an y

s u c c e s s o r

corporation

or b u s i n e s s

entity

s h a l l

comply

with t h e fol lowing terms:

a . D e f e n d a n t s h a l l n o t s ig n a d o c u m e n t t h a t

is

r e c o r d e d in t h e c o u n t y

recording offices in Il l inois u n le s s t h e person signing t h e

document(

t h e

s ignatory )

has

pe r fo rmed a substant ive

r e v i ew

of th e i n fo rma t ion

c o n t a i n e d in t h e d o c u m e n t

t o e n s u r e

t h e

a c c u r a c y a n d validity

of t h a t

information. S u b s t a n t i v e

review m e a n s

t h a t t h e signatory m u s t r e a d ,

unders tand, and r e v i e w each

d o c um en t

to

be r eco rded .

D e f e n d a n t m u s t

train a n d supervise

e a c h

signatory to e n s u r e that

t h e

signatory i s

performing a subs tan t i ve review of e a c h d o c u m e n t in compliance with

this

subsection.

b . D e f e n d a n t s h a l l

e n s u r e

t h a t a f f i d a v i t s ( o r

a n y o t h e r

d o c u m e n t c o n t a i n i n g

sworn test imony )

executed

by t h e Defendant,

or executed

by

any pe rson

a t

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th e direct ion

of th e Defendant ,

a r e b a s e d on

th e aff iant ' s

r ev iew and

persona

knowledge othe

accuracy

d

of

the assertions

in

th e

af f idav i ts .

Any

such

af f idav i t

sha l l

se t

forth

facts

th a t D e f e n da n t

reasonably

believes to

be

true, and

the

f f idavi t

must expla in w h y

th e

aff iant is c om p e te n t to test i fy on th e m a tte rs asserted in th e af f idav i t . Th e

a f f ian t s h a l l

confirm

t h a t th e a f f ian t h as r e v i e we d c o m p e t en t and

reliable

i n fo rmat ion to

substant iate th e

assert ions conta ined within

th e

a f f i dav i t .

c .

D o c u m e n t s p r e p a r e d for e l e c t r o n i c recording s h a l l

b e

electronically s i g n e d

by th e

signatory only after th e

signatory

h a s per formed the substantive

rev iew

descr ibed in

subsection( a )

above.

Electronical ly

recorded

d o c u m e n t s s h a l l

b e n o t a r iz e d b y t h e identified n o t a r y

only a f t e r performing

th e no ta r ia l acts

r equ i r ed

by

l aw .

Electronically

r e cor de d d oc um e n ts s h a ll

not be s igned or notar ized outs ide

of t h e p re se n ce ,

k now led ge and cont ro l

of th e

signatory or notary.

d. Documen ts

s igned

by s igna tor ies

at th e di rect ion of

th e D e fe n da nt fo r th e

purpose of r e co rda tion in I l l inois sh a ll a ccura te l y ident i fy th e s ignatory '

s

emp loye r ( e . g.,

e m p loy e d by

Nat ionwide Title Clear ing, Inc.)

and

indicate

t ha t

th e

s ignatory

h as

th e

qual i f ied

author i ty

to

s ign

on

b eha l f of

th e

financial institution or

mortgage

servicer.

e . Documents recorded by De fendan t sh a ll accurately re f lect th e n ature an d

substance

ofthe transaction.

f. ss i gnm en t s

into

a nd ou t of th e Mor tgage

E le c t r on i c R eg i s tr a t ion

Sys tems ,

Inc. (

MERS ) s h a l l

n ot

claim t h a t bo th

th e m o r tg a g e an d

note

h av e be en

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a s s i g n e d w h e n , in f a c t ,

o n l y

t h e m o r t g a g e h a s b e e n t r a n s f e r r e d

by

t h e

assignment.

g .

D e f e n d a n t

s h a l l r e m e d i a t e

a n y

d o c u m e n t

in

I l l i n o i s

t h a t

is

f o u n d

b y

a

c o u r t

t o b e

a

cloud

o n

title

or otherwise unlawful. Defendant shall a l s o

r e m e d i a t e a n y d o c u m e n t w h e n

r e a s o n a b l y

n e c e s s a r y

t o

a s s i s t a n y p e rs o n o r

borrower, o r w h e n r e q u ir e d

b y

f e d e r a l ,

s t a t e , o r

l o c a l law. D e f e n d a n t s h a l l

estab l i sh ,

adve r t i s e

an d staff

a toll-

f r ee

t e l e p h o n e

hotline w h e r e Illinois

consume rs may

a s k questions

regarding

any

document

executed

by NTC,

including

b u t n o t l imited t o r e q u e s t s that

NTC

remediate a document.

NTC s h a l l e n s u r e

t h a t

t h e h o t l i n e

is

a d e q u a t e ly s ta f fe d

b y

c o m p e t e n t ,

t ra ined

employees . For a per iod

of

twen t y -

four

months NTC shal l

mainta in

a log

of

calls and

r e s p o n s e s ,

inc lud ing th e consumer ' s name,

contact information,

and

a descr ipt ion

of th e question

or

request and

NTC'

s

r e s p o n s e . N T C

s h a l l

k e e p th e s a m e

t y p e of

l o g f o r a n y

c o n s u m e r

commu n i ca t i on subm i t ted to NTC by any o t h e r form or

m a n n e r .

NTC

sha l l

provide

a n up -

to -

date log u pon

request

a t a ny

t ime by

th e

I l l inois

At to rney Genera l '

s

Off ice . A f t e r conclusion of th e 24 - month

period,

th e

pa r t i e s

s h a l l con fe r ,

and

th e

Attorney

G e n e ra l s h all m a ke

a

r easonab l e

determinat ion

a s

to wh e th e r

th e

Defendan t shal l continue to mainta in th e

hot l ine and logs desc ribed in t h is pa rag raph fo r a per iod of no longe r t h an

twelve additional months.

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PAYMENT

8.

D e f e n d a n t s h a l l

p a y

t h e

Plaint i f f

t h r e e h u n d r e d fifty t h o u s a n d

dollars

3 5 0 , 0 0 0 ) .

U p o n e n t r y

of t h i s

F i n a l

C o n s e n t

D e c r e e ,

p a y m e n t

of

t h is a m o u n t

s h a l l b e

t e n d e r e d t o Plaintiff in

t h e

f o r m of a c a s h i e r s o r c e r t i f i e d

c h e c k .

T h e a m o u n t p a i d to

t h e

t t e of

I l l i n o i s

u n d e r

t h i s

s e c tio n s h a ll b e d e p o s i t e d

i n t o

t h e A t t o r n e y G e n e r a l

S t a t e

P r o j e c t s

a n d C o u r t

O r d e r e d

D i s t r i b u t i o n

F u n d .

P a y m e n t is n o t a n d s h a l l n o t b e c o n s t r u e d a s a n

a d m i s s i o n

of liability o n th e

p a r t

of

t h e

D e f e n d a n t . T h e

D e f e n d a n t s h a l l

n o t

b e

e n t it le d t o

further account ing regarding

t h e

m o n e y d e p o s it e d in to

s a i d fund.

JURISDICTION RETAINED

9.

J u r i s d i c t i o n is

e x p r e s s l y

r e t a i n e d

b y t h i s C o u r t

f o r th e

p u r p o s e

of

e n f o r c i n g

compliance

with the

provisions

of

this

Final Consent

Decree.

10.

This is a f i n a l o r d e r a n d n o

j u s t

r e a s o n e x is ts t o d e la y

e n f o r c e m e n t .

APPROVED:

PLAINTIFF:

DEFENDANT:

THE

PEOPLE

OF THE

STATE

OF

NATIONWIDE TITLE

ILLINOIS,

by

LISA MADIGAN,

CLEARING,

INC., a Florida

Attorney

General

o

Illinois

corporation

BY:

Susa

llis, Chief

John Hillman

Consumer

Fraud

Bureau

Chief Executive

Officer

DATE: /

e:/-

3

DATE:

r o

J

c I

Z

c

j

BY:

BY:

Andrew

Doughe

David Chizewer

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Assistant

Attorney

General

Attorney

for Defendant

DATE:

1 0 1

2-'

4 (

DATE:

ENTERED:

JUDGE

Attorney No. 99000

LISA MADIGAN

ILLINOIS ATTORNEY GENERAL

Susan Ellis, Chief

Consumer Fraud Bureau

A n d r e w Dough e r t y

A s s i s t a n t Attorney

G e n e r a l

Consumer Fraud Bureau

100 West Randolph, 12th Floor

Chicago, Illinois 60601

Tel.: (312) 814-

4982

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PAYMENT

8.

Defendant

s hall pay t h e Plainti f f t h r e e hundred f ifty thousand

dollars

3 5 0 , 0 0 0 ) .

Upon

entry of

this Final

C o n s e n t D e c r e e , payment of this

amount

shal l

b e

t en de r ed to

Pla in t i f f

in th e form

of

a cash ier '

s

or cert i f ied check. The

amount

p aid to th e

S t a t e

of Illinois u n d e r

t h i s s e c t i o n s h a l l

b e

d e p o s i t e d

i n t o t h e

A t t o r n e y

G e n e r a l

S t a t e P r o j e c t s

an d Court Ordered Distr ibution Fund. Payment is not an d shal l not

b e

construed a s

a n

admiss ion of liability

on

th e par t of th e Defendant .

Th e

Defendan t sha l l n ot

be

ent i t led to

f u r t he r accoun t ing r ega rd ing th e

money

deposi ted into said fund .

JURISDICTIONRETAINED

9.

Jurisdiction

is

express ly re tained by

this

Court fo r t h e purpose ofenforcing

compliance

with the provisions of this Final Consent

Decree.

10.

This is

a

f ina l order

an d

n o

just

reason

e xis ts to d ela y enforcement .

APPROVED:

PLAINTIFF:

DEFENDANT:

THE PEOPLE

OF

THE

STATE

OF

NATIONWIDE TITLE

ILLINOIS,

by

LISA

MADIGAN,

CLEARING, INC., a

Florida

Attorney

General o

Illinois

corporation

BY:

BY:

Susan

Ellis,

Chief

John Hillman

Consumer

Fraud

Bureau

ChiefExecutive

Officer

DATE: DATE: (

a/

t

Szo

f3

BY:

BY:

Andrew

Dougherty

i Chizewer

6-

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Assistant

Attorney

General

Attorney for

Defendant

DATE:

DATE:

70/?/

3

ENTERED:

t' .

1 3

JUDGE

c , ;\

ovallo';

of

R G [

U.)

OF

0:

r

o

r

C

E0

OAP

Attorney

No.

99000

LISA

MADIGAN

ILLINOIS

ATTORNEY GENERAL

Susan Ellis,

Chief

Consumer Fraud Bureau

A n d r e w D o u g h e r t y

A s s i s t a n t Attorney G e n e r a l

Consumer

Fraud

Bureau

100 West Randolph, 126 Floor

Chicago, Illinois 60601

Tel.: (312) 814-

4982

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