[Update 1: Adds comments from former Verification Bureau president]
Jacksonville-Fla.-based Lender Processing Services (LPS)
acquired Verification Bureau
, a developer of fraud prevention and Web-based automated income, identity and employment verification systems.
The Verification Bureau platform provides automated and paperless Internal Revenue Service
(IRS) and Social Security Administration
Verification Bureau president and co-founder Esteban Reyes told HousingWire
the deal took nearly a year to complete. Reyes will serve as managing director of Verification Bureau, which will be rebranded as the fraud solutions business unit of LPS’ applied analytics division, part of the firm’s portfolio solutions department.
Reyes declined to disclose financial terms of the deal, but said after building Verification Bureau from the group up since 2001, he and his two partners are excited about the prospect of their “baby” evolve and grow as an LPS unit.
LPS plans to integrate Verification Bureau into its existing collateral risk tools to increase its users ability to manage risk and avoid falling victim to mortgage fraud.
“Mortgage fraud is complex and evolves constantly,” Greg Whitworth, president of LPS’ Loan Portfolio Solutions division, said in a statement. “LPS is proud to expand its risk management offerings to include the most comprehensive, agile fraud solution set in the industry.”
Write to Austin Kilgore