JACKSONVILLE, Fla. – June 25, 2009 – Lender Processing Services, Inc. (NYSE: LPS), a leading provider of integrated technology and services to the mortgage and real estate industries, announced its release of the June 2009 LPS Mortgage Monitor, an in-depth report of mortgage industry performance indicators based on data collected as of May 31, 2009.
LPS’ detailed analysis shows that foreclosure starts in May increased 4.3% to the second highest level, according to LPS’ database, which dates back to 1992. Nevada, Florida, Arizona, California, Maryland, Michigan, Hawaii, Georgia, Rhode Island and New Jersey all posted foreclosure starts above the national average, with Washington, Illinois and Maryland experiencing the largest percentage increases.
Total mortgage delinquencies rose in May to 8.49% for a 5.0% increase over April’s results and a 50% year-over-year increase. The number of newly delinquent loans reached 637,822 in May 2009. Roll volumes, which reflect loans moving to a more delinquent status (for example, moving from 30 days to 60 days delinquent), increased month-over-month, with the exception of loans moving from 60 to 90 days delinquent. The April-to-May 2009 time period marks the first significant increase in loans rolling from current to 30-days delinquent in five years.
The LPS Mortgage Monitor also shows that the quality of loan originations has been improving, with 2009 delinquency curves well below prior years. With more attention focused on improved credit scores, lower LTV ratios, income and documentation, overall loan vintage quality has escalated.
The success rate for loss mitigation-related loan modification hovers in the 30-40% range, with a higher success rate for loan modifications involving a reduction in unpaid principal balance.
LPS manages the nation’s leading repository of loan-level residential mortgage data and performance information from more than 40 million loans across the spectrum of credit products. The company’s research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS’ monthly Mortgage Monitor Report.
To review the full report, listen to a presentation of the report or access an executive summary, 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 and services 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 are serviced using LPS’ Mortgage Servicing Package (MSP). In fact, many of the nation’s top servicers rely on MSP, including eight of the top 10 and 14 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, visit www.lpsvcs.com.
Investor Contact: Parag Bhansali, 904.854.8640, parag.bhansali@lpsvcs.com
Media Contact: Michelle Kersch, 904.854.5043, michelle.kersch@lpsvcs.com