LPS' January Mortgage Monitor: "Time-to-Clear" Default Backlog Still Extreme in Some Regions; Certain Non-Judicial States'

 LPS' January Mortgage Monitor: "Time-to-Clear" Default Backlog Still Extreme
in Some Regions; Certain Non-Judicial States' Pipeline Ratios Extending Due to
                          Legislative, Legal Actions

PR Newswire

JACKSONVILLE, Fla., March 7, 2013

JACKSONVILLE, Fla., March 7, 2013 /PRNewswire/ -- The January Mortgage Monitor
report released by Lender Processing Services (NYSE: LPS) found significant
differences continue in foreclosure pipelines between states with judicial and
non-judicial foreclosure processes. Though both foreclosure starts and sales
rates have been relatively volatile at the national level due to the effects
of regional processes and compliance issues, the foreclosure inventory in
judicial states remains three times that of non-judicial states. However,
according to LPS Applied Analytics Senior Vice President Herb Blecher, even
this now-familiar judicial/non-judicial dichotomy is not as clearly defined as
it once was.

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"On average," Blecher said, "pipeline ratios-- the rate at which states are
currently working through their existing backlog of loans either in
foreclosure or serious delinquency-- are almost twice as high in judicial
states than non-judicial states. At today's rate of foreclosure sales, it will
take 62 months to clear the inventory in judicial states as compared to 32
months in non-judicial states. A few judicial states -- New York and New
Jersey in particular -- have such extreme backlogs that their problem-loan
pipelines would take decades to clear if nothing were to change.

"More recently, certain non-judicial states, such as Massachusetts and Nevada,
have enacted 'judicial-like' legislative and/or legal actions which have
greatly extended their pipeline ratios. Nevada's 'time to clear' has extended
from 27 months in January 2012 to 57 months as of January 2013. The change in
Massachusetts has been even more pronounced. Since June of last year, its
pipeline ratio has gone from 75 to 171 months. As California's recently
enacted Homeowner's Bill of Rights is closely modeled on the Nevada
legislation, we'll be watching that state closely over the coming months to
gauge its impact, as well."

The January data also showed that, despite an overall national trend of
improvement, new problem loan rates remain high in states with large numbers
of "underwater" borrowers. So-called "sand states," such as Nevada, Florida
and Arizona, are still seeing high levels of negative equity (45, 36 and 24
percent of borrowers are underwater, respectively), and each of those states
is experiencing higher-than-average levels of new problem loans. Additionally
-- and further underscoring the differences seen between judicial and
non-judicial states -- new problem loan rates in non-judicial states declined
slightly over the last six months, while increasing almost 20 percent in
judicial states. 

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:         -2.03%
Total U.S. foreclosure pre-sale inventory rate:        3.41%
Month-over-month change in foreclosure pre-sale        -0.82 %
inventory rate:
States with highest percentage of non-current* loans: FL, MS, NJ, NV, NY
States with the lowest percentage of non-current*      MT, AK, WY, SD, 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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