LPS' April Mortgage Monitor Shows Sharp Jump in FHA Foreclosure Starts; Overall Foreclosure Starts Decreased Slightly

   LPS' April Mortgage Monitor Shows Sharp Jump in FHA Foreclosure Starts;
                Overall Foreclosure Starts Decreased Slightly

PR Newswire

JACKSONVILLE, Fla., May 31, 2012

JACKSONVILLE, Fla., May 31, 2012 /PRNewswire/ --The April Mortgage Monitor
report released by Lender Processing Services (NYSE: LPS) shows that while
overall foreclosure starts were down 2.6 percent in April, FHA foreclosure
starts spiked significantly, jumping 73 percent during the month. The rise was
driven primarily by defaults in 2008 and 2009 vintage loans, though all FHA
vintages saw increases in foreclosure starts in April, despite that fact that
the more recent vintages – from 2009 forward – have shown improved relative
credit performance.

"In 2008, when the loan origination market virtually dried up, the FHA stepped
in to fill the void," explained Herb Blecher, senior vice president for LPS
Applied Analytics. "FHA originations tripled that year, and increased to five
times historical averages in 2009. High volumes like that, even with low
default rates, can produce larger numbers of foreclosure starts. That
represents a lot of loans to work through – the 2008 vintage alone represents
some $14 billion of unpaid balances in foreclosure, and the overall FHA
foreclosure inventory continues to rise."

The April data also showed that foreclosure sales continue to remain low
nationally, decreasing 2.6 percent month-over-month, and with volume that
remains about one-third that of foreclosure starts. Foreclosure sales in
non-judicial states dropped 2.0 percent, and those in judicial states remained
basically flat, down just 0.01 percent over the month. Even those states that
saw increases in foreclosure sales saw only incremental increases in terms of
real numbers, and all were still far below pre-moratoria levels.

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

Total U.S. loan delinquency rate:       7.12 %
Month-over-month change in delinquency rate:       0.4 %
Total U.S. foreclosure pre-sale inventory rate:             4.14 %
Month-over-month change in foreclosure pre-sale inventory   0.0 %
States with highest percentage of non-current* loans:  FL, MS, NJ, NV, IL
States with the lowest percentage of non-current*           MT, AK, SD, WY, ND
*Non-current totals combine foreclosures and delinquencies as a percent of
active loans in that state.
(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

About Lender Processing Services
Lender Processing Services (NYSE: LPS) delivers comprehensive technology
solutions and services, as well as powerful data and analytics, to the
nation's top mortgage lenders, servicers and investors. As a proven and
trusted partner with deep client relationships, LPS offers the only end-to-end
suite of solutions that provides major U.S. banks and many federal government
agencies the technology and data needed to support mortgage lending and
servicing operations, meet unique regulatory and compliance requirements and
mitigate risk.

These integrated solutions support origination, servicing, portfolio retention
and default servicing. LPS' servicing solutions include MSP, the industry's
leading loan-servicing platform, which is used to service approximately 50
percent of all U.S. mortgages by dollar volume. The company also provides
proprietary data and analytics for the mortgage, real estate and capital
markets industries.

LPS is headquartered in Jacksonville, Fla., and employs approximately 8,000
professionals. The company is ranked on the Fortune 1000 as the 877th largest
American company in 2012. For more information, please visit www.lpsvcs.com.

SOURCE Lender Processing Services
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