LPS' July Mortgage Monitor: Despite Interest Rate Hikes, Origination Volume Remains Stable; YTD Foreclosure Starts Lowest Since

 LPS' July Mortgage Monitor: Despite Interest Rate Hikes, Origination Volume
  Remains Stable; YTD Foreclosure Starts Lowest Since 2007, Nearly Half Are
                                   Repeats

PR Newswire

JACKSONVILLE, Fla., Sept. 3, 2013

JACKSONVILLE, Fla., Sept. 3, 2013 /PRNewswire/-- The July Mortgage Monitor
report released by Lender Processing Services (NYSE: LPS) found that while
loan origination volume had slowed slightly from May to June, overall activity
remained relatively strong. According to LPS Data & Analytics Senior Vice
President Herb Blecher, prepayment activity (historically a good indicator of
mortgage refinances) is still largely driving origination volume, as has been
the case for some time now.

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"Prepayment speeds have been impacted by the sharp increase in mortgage
interest rates we've seen over the last couple months," Blecher said.
"However, even with that increasing interest rate pressure, July's monthly
prepayment rates are still about where they were this time last year, when
rates were at historic lows. In fact, they are roughly at the same levels as
the heights of the 'mini refinance booms' in 2010 -- when interest rates were
comparable to where they are today -- and in 2009, when rates were even
higher. Of course, as interest rates continue to climb, we can expect that
both prepayments and associated originations will decline. It's notable
however, that we saw an increase in prepayment activity in July among higher
loan-to-value (LTV) mortgages -- those with LTVs of 100 percent or more --
indicating continued HARP refinance activity.

"With that in mind, we also looked at the delinquency rate for what are likely
to be HARP loans 12 months after origination," Blecher continued. "We found
that while delinquencies were higher than "traditional" (sub-80 percent LTV)
GSE loans -- at approximately 1.2 percent -- this group is performing better
than both pre-crisis GSE loans and post-crisis FHA loans (which both averaged
4 percent delinquency rates at 12 months of age). Overall, the data shows that
the strong downward trend in delinquencies and foreclosures continues
nationwide, with a decrease in foreclosure starts contributing to this
improvement. For the year to date, 2013 has produced the lowest level of
foreclosure starts since 2007. Given that nearly 50 percent of these are
repeat foreclosures means that the picture is even more positive than a
surface reading of the numbers might suggest."

This month's Mortgage Monitor also leveraged residential real estate
transaction data from the LPS Home Price Index to examine trends associated
with distressed sales and found that these too were on the decline. For the
12-month period ending in June 2013, distressed sales overall (including both
REO and short sales) were down nearly 30 percent from the same period ending
in June 2012 -- from 650,000 to 463,000. Of these, short sales had declined
significantly -- by nearly 60 percent -- accounting for just over 46,000 sales
during that timeframe as compared to 104,000 in 2012.

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

Total U.S. loan delinquency rate:    6.41%
 
Month-over-month change in delinquency rate:  -3.96%

Total U.S. foreclosure presale inventory rate:              2.82%
 
Month-over-month change in foreclosure presale inventory    -3.46%
rate:
States with highest percentage of non-current* loans:  FL, MS, NJ, NY, ME

States with the lowest percentage of non-current* loans:   WY, MT, AK, SD, ND


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

To view the Mortgage Monitor Snapshot, LPS' video version of the Mortgage
Monitor,go to
http://www.lpsvcs.com/LPSCorporateInformation/MultimediaLibrary/Pages/Video-Library.aspx?ListName=Video&ItemName=MMJuly3.wmv

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
http://www.lpsvcs.com/LPSCorporateInformation/CommunicationCenter/DataReports/Pages/Mortgage-Monitor.aspx

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. The company also provides
proprietary data and analytics for the mortgage, real estate and capital
markets industries. LPS is a Fortune 1000 company headquartered in
Jacksonville, Fla., and employs approximately 7,500 professionals. For more
information, please visit www.lpsvcs.com.

SOURCE Lender Processing Services, Inc.

Website: http://www.lpsvcs.com
Contact: Media contact: Michelle Kersch, (904) 854-5043,
Michelle.kersch@lpsvcs.com; Investor contact: Nancy Murphy, (904) 854-8640,
Nancy.murphy@lpsvcs.com
 
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