LPS' November Mortgage Monitor: Foreclosure Inventory Falls as Starts Decline; Potential for Further HARP Refinance Activity

LPS' November Mortgage Monitor: Foreclosure Inventory Falls as Starts Decline;
          Potential for Further HARP Refinance Activity Remains High

Delinquencies Up Sharply in Sandy-Impacted ZIPs

PR Newswire

JACKSONVILLE, Fla., Jan. 14, 2013

JACKSONVILLE, Fla., Jan. 14, 2013 /PRNewswire/ --The November Mortgage
Monitor report released by Lender Processing Services (NYSE: LPS) shows the
national foreclosure inventory dropped to 3.51 percent in November,
representing an almost 10 percent decline from September 2012, when newly
instituted National Mortgage Settlement requirements began to influence the
pace of first-time foreclosure starts. As noted in last month's Mortgage
Monitor release, LPS expects foreclosure starts to rebound as mortgage
servicers incorporate the new procedural requirements into their operations in
the coming months.

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LPS found mortgage origination activity strong. According to LPS Applied
Analytics Senior Vice President Herb Blecher, borrowers are benefiting from
today's historically low interest rates. "Comparing interest rates on new
versuspaid-offloans, we see thatinterest rates on the former are 1.5
percentage points below the latter," Blecher said. "With prepaymentactivity
being as high as it is – 2 percent of total outstanding U.S. mortgage balances
prepaid orrefinanced in November alone – this equates to significant
potential savings for borrowers. On average,this translates intonew loan
paymentsthat are approximately $190 less per month than
thoseofborrowersprior to paying off their loans.

"Additionally, after a decline in September related to the shortened business
month, HARP-related origination activity is once again near its recorded
highs, and we see significant potential for further growth on that front.
There are currently approximately 2.6 million loans that fit generalized HARP
eligibility requirements, with 50 percent having 'prime quality' credit scores
of 720 or above."

The November data also showed that the impact of Hurricane Sandy continued in
ZIP codes hit hardest by the storm. While national delinquencies are moving in
line with seasonal trends – that is, tending to rise slightly through the
remainder of the calendar year – mortgage delinquencies increased sharply in
those areas affected by Sandy. Whereas the national delinquency rate has
increased 3.7 percent since August of this year, delinquencies in
Sandy-impacted ZIPs have risen at more than threefold that pace – climbing
15.4 percent in Conn., 15.2 percent in N.J. and 14.8 percent in N.Y.

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:   1.2%
Total U.S. foreclosure pre-sale inventory rate:            3.51%

Month-over-month change in foreclosure pre-sale inventory  -2.84 %
States with highest percentage of non-current* loans:    FL, NJ, MS, NV, NY
States with the lowest percentage of non-current*          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

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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