LPS Earns $80m in Q210 Despite Drop in Mortgage Default Business
Lender Processing Services (LPS), an analytics and real estate services provider, reported $80.4m in net income in Q210 or $0.85 per diluted share, up 6.9% from the $75.2m reported in the second quarter of last year. The earnings came despite decreased revenue in its default services division, which provides an “end-to-end” process from loss mitigation to short sales, property preservation and a network of REO brokers. In Q210, LPS reported $415.5m in revenue from these services, an 8.2% decline from the same quarter of last year. According to LPS, the declines came from a 16% drop in foreclosure starts in Q210, driven “by a broader industry slowdown.” Revenues from its loan origination side declined as well. Its loan transaction services department saw a 7.2% drop from last year to $415m in Q210. While revenues from its loan facilitation services were also down 5.4% from last year, mortgage origination revenues stayed above projections from the Mortgage Bankers Association (MBA), which predicted a 20% decline in origination from 2009 to now. “LPS had a strong quarter despite very difficult conditions in both the origination and default markets and a sustained challenging macro-economic environment. LPS, with its comprehensive end-to-end solutions for the mortgage and real estate industries, remains well positioned for a solid 2010 and to continue to grow profitably in 2011 and beyond,” said Lee Kennedy, executive chairman of LPS. Write to Jon Prior.