I had a issue with them in 3.8/3.82; they weren't supposed to be spawned on the world map. I call them "Away Lords", because when you become king and capture/own your first town you can higher a chancellor in your court to hire them as Lords from the mainland. This was fixed in the 3.88 release which I'll upload once the multiplayer portion is finished.
Note:
The Away lord system can be easily made to add 100s of lords, I've set the max to hire in one play to 20. ATM there are only 20 so let's say I added 40 more "Away Lords" for a total of 60; well In one play I hire the max of 20 lords in my kingdom and get the secret dialog message notifying I've hit the max. After I hit the max there are 40 lords left over. These 40 lords will become free agents and slowly become vassals of other factions. This same pool of "Away Lords" can be used to pull new lord from when lords die. So it is possible to have a constant stock of lords with this system.