A refinancing craze and increased demand for mortgage technology solutions pushed Lender Processing Services (LPS) to a third-quarter profit — 44% higher than year ago levels.
The mortgage technology firm recorded net earnings of $58.3 million, or 69 cents a share, in the third quarter. That compares to a third-quarter profit of $40.4 million, or 48 cents a share, a year earlier.
LPS' revenue fell 1.3% from year ago levels, but still came in at $512.7 million.
The company increased its investment in tech solutions to help the mortgage industry with new requirements. In fact, revenue from technology, data and analytics grew 11% from a year ago to $192 million.
Record low interest rates during the period pushed refinancing activity higher, causing the company to invest more in its expanding platforms.
"Our strong third-quarter results demonstrate LPS' continued delivery of high-value, technology-driven solutions to our clients to meet evolving compliance, loan quality and efficiency requirements," said Hugh Harris, president and chief executive officer of LPS. "Our proven business model consistently generates strong cash flow allowing LPS to invest in innovative solutions that enhance the mortgage lending value chain, enable our clients to succeed, and drive long-term value for our shareholders through sustainable growth."