Lender Processing Services Acquires McDash Analytics
Lender Processing Services, Inc. (LPS) hasn't wasted any time making a major move after its recent spin-off from Fidelity National Information Services, Inc. (FIS). The company said Tuesday morning that it had acquired McDash Analytics LLC, which provides access to the industry's largest loan-level database of mortgage assets for the purpose of benchmarking and analysis. How McDash got the data that made it so suddenly valuable as an acquisition target is something that many in the industry may not realize: McDash is the data aggregator and provider for the HOPE NOW alliance of servicers, meaning the company receives loan-level data from nearly every major servicer via its participation in the initiative. So, in a way, LPS essentially just bought the guts of HOPE NOW. Chew on that one for a little bit. LPS said in a press statement that the acquisition would "complement" its existing data and analytics offerings -- HW's sources were much more direct, however, and said McDash would make the company's future business in the area. "This gives LPS access to loan-level reporting they simply haven't had in the past," said one source, a banking executive that asked not to be named in this story. "It's akin to having MSP land in your lap from a data perspective." For those not versed in industry history, MSP refers to the former ALLTEL servicing platform -- also now owned by LPS after the spin-off from Fidelity National -- that was bought in a 2005 deal worth a little over $1 billion; the MSP platform is used by half of the mortgage servicing market. The acquisition of McDash gives LPS access to loan-level data for more than 39 million active first and second mortgage loans, including portfolios serviced by nine of the top 10 mortgage servicers in the nation (essentially, the HOPE NOW data). The data represents approximately two-thirds of the mortgage market and spans the entire credit spectrum of agency, non-agency and portfolio products. "Providing analytic transparency on mortgage asset behavior is a critical factor to restoring confidence in the mortgage market," said Ted Jadlos, chief executive officer of McDash Analytics. "Recently, the company was called upon by the Office of the Comptroller of Currency and a mortgage industry non-profit agency to provide data collection, purification and reporting services related to the industry's loss mitigation efforts. These efforts are critical in gaining a more clear understanding of the turmoil in the mortgage market, and deciphering the path to market stabilization and health." With the McDash acquisition finalized, LPS has already moved forward with a strategic decision to consolidate all of its data and analytic assets into a newly formed division, LPS Applied Analytics. The creation of this new division combines the newly-acquired McDash business offerings with those of the public records, property valuation and analytics businesses that had already existed within LPS. The company's data and analytic solutions will be available through a variety of delivery methods, including McDash Online, MSP and LPS Desktop, according to company officials. For more information, visit http://www.lpsvcs.com.