LPS' October Mortgage Monitor: Foreclosure Starts Down; Decline Likely Temporary as Industry Adapts to New National Mortgage

    LPS' October Mortgage Monitor: Foreclosure Starts Down; Decline Likely
Temporary as Industry Adapts to New National Mortgage Settlement Requirements

October Prepayment Rates Point to Increase in Originations for Month

PR Newswire

JACKSONVILLE, Fla., Dec. 5, 2012

JACKSONVILLE, Fla., Dec. 5, 2012 /PRNewswire/ --The October Mortgage Monitor
report released by Lender Processing Services (NYSE: LPS) showed a significant
decline in foreclosure starts for the last two months – down 21.9 percent in
October and almost 48 percent on a year-over-year basis – leading to a nearly
7 percent drop in overall foreclosure inventory. However, as LPS Applied
Analytics Senior Vice President Herb Blecher explained, this fall-off in
foreclosure starts is likely a temporary phenomenon, driven by new borrower
notification requirements called for in the National Mortgage Settlement.

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"LPS observed a drop-off in foreclosure starts in September that accelerated
in October," Blecher said. "This decline coincided with the implementation of
new procedural changes outlined in the National Mortgage Settlement, which
requires, among other things, that mortgage servicers provide written notice
to borrowers 14 days prior to referring a delinquent loan to a foreclosure
attorney. This has resulted in what is likely a temporary slowdown in
foreclosure starts that we do not believe is indicative of a longer-term
trend. However, we will continue to monitor this activity closely in the
coming months."

This month's Mortgage Monitor also drew upon data from the LPS Home Price
Index, to look at both the trajectory of home price increases as well as the
make-up of residential real estate transactions. While appreciation continues
to rise nationally – U.S. home prices were up 3.6 percent year-over-year in
September and on track to gain between 5-7 percent for 2012 – overall sales
volumes remain relatively low. During the past 12 months, there have been
approximately 4.1 million residential real estate sales, less than half the
annualized rate at the market's peak in November 2005. Further, 1.3 million of
those transactions have been distressed sales, compared to just 226,000 at the
peak. As a point of reference, despite 2012's healthy rate of appreciation,
home prices are still nearly 23 percent off their June 2006 peak.

Looking at the current state of mortgage originations, LPS found that
September loan originations were down, likely dueto the shortened number of
business days in the month. However,prepayment speeds (historically a
goodindicator of refinance activity) rebounded in October, and as such, LPS
expectsto see overall origination numbers pick up for that month. LPS also
found thatmortgage spreads remain elevated, averaging 197 basis points above
the 10-YearTreasury rates, with interest rates consistent across all product

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

Total U.S. loan delinquency rate:                          7.03%
Month-over-month change in delinquency rate:               -4.91%
Total U.S. foreclosure pre-sale inventory rate:          3.61%
Month-over-month change in foreclosure pre-sale inventory   -6.77 %
States with highest percentage of non-current* loans:      FL, MS, NJ, NV, NY
States with the lowest percentage of non-current* loans:   MT, WY, SD, AK, ND

*Non-current totals combine foreclosures and delinquencies as a percent of
active loans in that state. Totals are extrapolated based on LPS Applied
Analytics' loan-level database of mortgage assets.

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 877^th largest
American company in 2012. For more information, please visit www.lpsvcs.com.

SOURCE Lender Processing Services, Inc.

Website: http://www.lpsvcs.com
Contact: Media, Michelle Kersch, +1-904-854-5043, Michelle.kersch@lpsvcs.com
or Investors, Nancy Murphy, +1-904-854-8640, Nancy.murphy@lpsvcs.com
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