Jacksonville, Fla. and Spring, Texas (Oct. 17, 2008) – Lender Processing Services, Inc. (LPS), Jacksonville, Fla., and Reverse Mortgage Solutions (RMS), Spring, Texas, have entered into an alliance that enables LPS to offer RMS’ reverse mortgage origination and servicing technology to lenders, RM Compass® and RM Navigator®, respectively.
“This alliance enables LPS to offer yet another mortgage market solution to our servicing client base,” said Dan Scheuble, co-chief operating officer of LPS. “We look forward to extending our position into the growing reverse-mortgage arena.”
The primary target market for reverse mortgages is homeowners, over the age of 65, who have paid off their mortgages. Current demographics indicate that there are approximately 34 million Americans who are 65 or older in the prime reverse-mortgage target market. By 2030, that number will more than double to 71 million, accounting for 21 percent of the total American population. In addition, 12.5 million U.S. senior citizens presently own their home(s) mortgage-free, representing approximately $4 trillion in equity.
“We have several clients who have expressed interest in servicing reverse mortgages,” said Scheuble. “As the market for this product increases in size, we anticipate even more clients entering this arena.”
“The entire RMS organization is genuinely pleased by this partnership and we look forward to working with LPS, a company that is recognized as the premier provider of mortgage technology products and services in the forward-mortgage area. In just 18 months of operation, we have captured a significant market share of reverse mortgages and with this alliance we will continue that growth,” said Marc Helm, chief operating officer of RMS. “Just a short time ago, mortgage lenders were reluctant to enter the reverse mortgage sector, perceiving it as too difficult to originate the loans, service them and sell into the secondary market. With our reverse mortgage origination and servicing systems, this is no longer a hurdle.”
Both RMS and LPS are exhibiting at the Mortgage Bankers Association’s Annual Convention in San Francisco this month: RMS in Booth #730 and LPS in Booth #510.
About Reverse Mortgage Solutions
The company is the first to provide a full, end-to-end solution for the reverse mortgage business, from its "Enterprise Level" loan origination system (RM Compass) to loan servicing, subservicing and secondary market securitization. Its experienced senior management makes RMS the nation's leading authority on all aspects of reverse mortgages. For sales information, contact: Ken Austin, president, 281.404.7825. Visit the company Web site at: www.rmsnav.com.
About Lender Processing Services
LPS is a leading provider of integrated technology and services to the mortgage industry. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, portfolio retention and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages are serviced using LPS' MSP. In fact, many of the nation's top servicers rely on MSP, including seven of the top 10 and 16 of the top 20. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, please visit www.lpsvcs.com.
LPS media contact:
Michelle Kersch, 904.854.5043, michelle.kersch@lpsvcs.com
Investor contact:
Parag Bhansali, 904.854.8640, parag.bhansali@lpsvcs.com
RMS contact:
Marc Helm, 281.791.7824, mhelm@rmsnav.com