Profile: Lender Processing Services Inc (LPS)
3 Dec 2013
Lender Processing Services, Inc. (LPS), incorporated in December 7, 2007, is a provider of integrated technology, data and services to the mortgage lending industry. The Company delivers comprehensive technology solutions and services, as well as data and analytics, to mortgage originators and servicers, as well as a range of other financial institutions, investors, and other real estate professionals. The Company offers an end-to-end suite of solutions, which provide the technology and data needed to support mortgage lending and servicing operations. These integrated solutions support origination, servicing, portfolio retention and default servicing. The Company conducts its operations through two reporting segments: Technology, Data and Analytics, and Transaction Services. On December 20, 2012, the Company completed the sale of its IRMS business unit. On July 24, 2012, the Company completed the purchase of the assets of LendingSpace. On May 2, 2012, the Company completed the sale of its True Automation and Aptitude Solutions business units. On January 31, 2012, it completed the sale of its Tax Services business unit. On January 9, 2012, it completed the sale of its SoftPro business unit. During the year ended December 31, 2012, the Company completed the shutdown of its Asset Management Solutions business unit.
The Company’s technology solutions include MSP, which is mortgage processing software in the United States. Its technology solutions also include its Desktop system, which is a middleware enterprise workflow management application designed to streamline and automate business processes, as well as its data and analytics solutions, which provide proprietary data for the mortgage, real estate and capital markets industries. Its transaction services include its origination services, which support aspects of the closing of mortgage loan transactions by national lenders and loan servicers, and its default services, which are used by mortgage lenders, servicers and other real estate professionals to reduce the expense of managing defaulted loans.
Technology, Data and Analytics
The Company’s Technology, Data and Analytics segment offers software systems and information solutions, which facilitate and automate business processes across the life cycle of a mortgage. Its technology solutions are software applications provided to mortgage lenders and other lending institutions, together with related support and services. Its technology solutions consist of mortgage processing and workflow management software applications. Its other technology solutions include its origination and default technology, from which it earns revenues on a per transaction basis. Its data and analytics offerings consist of its alternative valuation services, real estate and mortgage data, modeling and forecasting and analytical tools.
The primary applications and services of the Company’s technology businesses include Servicing Technology, Default Technology and Origination Technology. The Company’s MSP is software -as-a-Service (Saas) application, which automates loan servicing, including loan setup and ongoing processing, customer service, accounting and reporting to the secondary mortgage market, and federal regulatory reporting. MSP serves as the core application through which its customers keep the records of their mortgage loans. Its capabilities on its MSP platform also include processing home equity loans.
The Company has developed a Web-based workflow information system, which it refers to as Desktop. The Desktop application can be used for managing and automating a range of different workflow processes. It can also be used to organize images of paper documents within a particular file, to capture information from imaged documents, to manage invoices and to provide multiple users access to key data needed for various types of monitoring and process management.
The Company offers software applications and services, which automate and facilitate the origination of mortgage loans in the United States. It also offers RealEC, a collaborative vendor network for the mortgage industry. The RealEC network enables lenders and their business partners to electronically connect, collaborate and automate their business processes and to electronically order and route settlement services. Its Loan Quality Gateway is integrated with RealEC. In addition to its technology applications, this segment provides data and analytics solutions, which are used in different steps in the life cycle of a mortgage. Its primary data and analytics services are alternative valuation services, and data and information.
The Company offers a range of property valuation services, which allow its customers to match their risk of loss with alternative forms of property valuations, depending upon their needs and regulatory requirements. These include automated valuation models, collateral risk scores, appraisal review services and valuation reconciliation services. It acquires and aggregates real estate property and loan data on a national level and make such data available to its customers in a single database with a standard, normalized format. It also provides tax status data on properties and offers a range of value added services, which enable its customers to utilize its data to assess and mitigate risk, determine property values, track market performance and generate leads.
The Company competes with CoreLogic, Inc., Verisk and DataQuick.
The Company’s Transaction Services segment offers customized outsourced business process and information solutions. It works with its customers to set specific parameters regarding the services they require, and where practicable, provide a single point of contact with it for these services. The Transaction Services segment consists of its origination services and its default services. Its origination services are provided to mortgage lenders to support business processes necessary to originate a loan. Each of these services is provided through a centralized delivery channel in accordance with a lender’s specific requirements, regardless of the geographic location of the borrower or property.
The applications and services of the Company's origination services businesses include Settlement and title agency services, Appraisal services, and Other origination services. The Company offers centralized title agency and closing services to its customers. Its title agency services include conducting title searches and preparing an abstract of title, reviewing the status of title in a title commitment, resolving title exceptions, verifying the payment of existing loans or other encumbrances secured by a subject property, and either arranging for or issuing a title insurance policy from a title insurance underwriter. Its closing management services include assembling loan documents used in connection with a closing. It works with closing agents, notaries, and attorneys, which are trained to close loans in accordance with lenders instructions.
The Company operates an appraisal management company, which utilizes staff appraisers and independent appraisers to provide traditional property appraisals. Traditional property appraisal services involve labor intensive inspections of the real property in question and of comparable properties in the same and similar neighborhoods. The Company offers federal flood zone certifications in connection with the origination of new mortgage loans. It also offers monitoring services that notify a lender of any change in flood zone status during the life of a loan.
The primary applications and services of its default services include foreclosure administrative services, property inspection and preservation services, default title and settlement services, and alternative property valuation services.
The Company offers lenders, servicers and their attorneys certain administrative and support services in connection with foreclosures they manage utilizing its default technology. It also offers posting and publication of foreclosure and auction notices, and conduct mandatory title searches. At the onset of a loan default, its services are designed to assess and preserve the value of the property securing the loan. It also offers property preservation and maintenance services, such as lock changes, window replacement, lawn service and debris removal, through independent contractors. It offers a range of title and settlement services relating to the lender’s ownership and eventual sale of REO properties. It provides a range of default related valuation services, which support loss mitigation and the foreclosure process.
The Company competes with First American Corporation and Fidelity National Financial, Inc.
Lender Processing Services Inc
601 Riverside Avenue
JACKSONVILLE FL 32204