Lender Processing Services (LPS) will revise its report showing an incorrect spike in foreclosures on Federal Housing Administration mortgages.
According to the LPS report, foreclosure starts increased 73% on FHA-backed home loans in April to more than 63,000 filings. Department of Housing and Urban Development data showed only 19,000 filings that month.
HUD and LPS officials met days after releasing the report to reconcile the findings.
“After an exhaustive review, FHA remains confident in the accuracy of the data it reported in April,” a HUD spokesman said in a statement Thursday. “While we do anticipate elevated levels of foreclosure starts for our portfolio in the coming months, the very large increase reported by LPS for the month of April was not accurate.”
An LPS spokesperson did not have a release date for the revised report.
“LPS has worked together with FHA and is adjusting its models based on those conversations,” the firm said in a statement.
