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JACKSONVILLE, Fla. – December 1, 2011 - The October Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows mortgage delinquencies continue their decline, now nearly 30 percent off their January 2010 peak. Meanwhile, foreclosure inventories are on the rise, reaching an all-time high at the end of October of 4.29 percent of all active mortgages. The average days delinquent for loans in foreclosure extended as well, setting a new record of 631 days since last payment, while the average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month.

Judicial vs. non-judicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from state to state, with non-judicial foreclosure inventory percentages less than half that of judicial states. This is largely a result of the fact that foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial. Non-judicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in non-current loans percentages.

The October data also showed that mortgage originations are on the rise, reaching levels not seen since mid-2010. Mortgage prepayment rates have also spiked, as much of the new origination is related to borrower refinancing; loans originated in 2009 and later are the primary drivers of the increase. While FHA origination activity is down, GSE and FHA originations still account for the vast majority of all new loans – nearly nine out of every 10 new mortgages.

As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:

​Total U.S. loan delinquency rate: ​7.93%
 
​Month-over-month change in delinquency rate: ​-2.0%
​Total U.S. foreclosure pre-sale inventory rate: ​4.29%
​Month-over-month change in foreclosure pre-sale inventory rate: ​2.5%
​States with highest percentage of non-current* loans: ​FL, MS, NV, NJ, IL
​States with the lowest percentage of non-current* loans: ​ND, AK, SD, WY, MT
 
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1)    Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.
(2)    All whole numbers are rounded to the nearest thousand.
 

About the Mortgage Monitor

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information on nearly 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report. To review the full report, visit http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx.
 

About Lender Processing Services

Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology, services and mortgage performance data and analytics to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop®), portfolio retention and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS' loan servicing platform (MSP). LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit www.lpsvcs.com.
 
Media contact: Michelle Kersch, 904.854.5043, Michelle.kersch@lpsvcs.com
Investor contact: Nancy Murphy, 904.854.8640, Nancy.murphy@lpsvcs.com
 
 
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