LPS Posts $592m Profit in Q110
Lender Processing Services (LPS), the real estate technology and services provider, reported $592.4m in revenues for Q110, up from $103.9m in Q409 and an 11.8% increase from the $50m reported in the first quarter of last year. Its origination segment, the LPS Loan Facilitation Services subsidiary, pushed revenues to $146.6m, a 23% increase from Q409. According to LPS, those results clash with the Mortgage Bankers Association (MBA) estimate of a 4% drop in origination business. According to LPS, the gains came from higher settlement services and increased appraisal volumes. Revenues for its default services unit reached $268.7m, up 5.2% from the first quarter of 2009 even though foreclosure starts dropped 6% over the same period. A few of the top-tier financial institutions implemented the LPS Desktop application, a loss mitigation tool that automates the loan modification process for the Home Affordable Modification Program (HAMP). Revenues for the LPS technology, data and analytics department grew to $179.5m from $159.9m a year ago. “Our Loan Facilitation business posted record growth in a sluggish year-over-year origination market as we continued to gain market share. Our Default Services business grew year-over-year as well, despite being impacted by broader industry slowdowns. Also, our Mortgage Processing and other Technology businesses delivered another strong quarter," added Jeff Carbiener, CEO of LPS. Write to Jon Prior.