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.
Most Popular Articles
The average U.S. rate for a 30-year fixed mortgage fell to 3.33% this week, according to Freddie Mac, as the Federal Reserve’s bond-buying program created demand for securities backed by home loans.
Home equity co-investing pioneer Unison cut almost 50% of its team Friday, and no, this doesn’t mean housing and fintech doom. HousingWire Columnist Julian Hebron explains why.