LPS Posts $54.3M Q4 Profit
Default services drove the quarterly profit reported Wednesday by Lender Processing Services Inc. (LPS). The Jacksonville-based mortgage industry technology provider reported fourth-quarter earnings of $54.3 million -- or 57 cents per share -- an increase from the $51.3 million reported for the third quarter. "LPS had a solid fourth quarter despite continued difficult market conditions and a tenuous macro-economic environment impacting some of its businesses," said chairman William Foley II. Total operating income for the company came in at $120.4 million, an increase from the previous year quarter's $121.2 million. The company operates two segments, a data and analytics division and a loan transaction services division (which includes the company’s default management operations). Within LPS' analytics division, mortgage processing services saw an $88.4 million revenue, up from the $83.6 million reported in the third quarter. Loan facilitation services posted a $86.1 million revenue, a 42.9 percent decrease from the previous year quarter, "mainly due to ongoing weakness in the refinance and origination markets" which negatively affected appraisal and settlement service volumes. Default services posted a $243.7 million revenue -- a 68.3 percent increase from the previous year period. "Our Default Services business continued to deliver strong results which more than offset a decline in our Loan Facilitation Services," said president and CEO Jeff Carbiener. "Also, our Servicing and other technology businesses had another solid quarter." Write to Diana Golobay at email@example.com. Disclosure: The authors held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.