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Click on individual bank names in the table below to access American Banker's coverage of each company's earnings report. Links to relevant coverage, filings, and releases can be found in the Related Links area of each article.
January 28
Lender Processing Services reported annual and quarterly revenue gains for origination services and technology, but its corresponding business in the mortgage servicing and default arenas closed out the year with quarterly declines.
LPS, of Jacksonville, Fla., is one of the largest technology and services vendors to the mortgage industry. It provides software to both mortgage lenders and servicers, like the Mortgage Servicing Package, a technology platform used for payment processing and other servicing tasks for roughly 53% by dollar volume of all active mortgages in the U.S., including loans serviced by Wells Fargo & Co. and JPMorgan Chase & Co. It also claims a 10% market share among mortgage loan origination system technology.
Along with technology, LPS provides mortgage underwriting and settlement services and is a significant provider of default and foreclosure services.
LPS' net earnings fell 5.6%, to $70.7 million, in the fourth quarter from a year earlier. Its consolidated revenue rose 5%, to $638.8 million. The results were released Thursday.
For all of 2010, the default services segment had a revenue decline, while technology and origination services increased revenue. "LPS was coming off an extremely strong year in 2009. We benefited from origination and default market volumes increasing on a year-over-year basis, which allowed us to grow our revenue base by 29%," Jeffrey Carbiener, the president and chief executive of LPS, told analysts on a conference call Friday. "In 2010, we had to deal with the exact opposite."
LPS projects total mortgage originations of $1 trillion in 2011, down 30% from 2010, and said the ongoing delays in the foreclosure process will continue in 2011, impacting potential revenue streams. To combat that sluggish business, executives said the company will look to increase market share in its various segments to maintain revenue.
LPS expects addressable revenue for its technology, data and analytics unit — providers of mortgage servicing and origination software — will remain steady at $2.3 billion from 2010 to 2012. Mortgage processing, the servicing segment within the TD&A division, reported revenue fell 3.7% in the fourth quarter. The second half of the TD&A division, called Other TD&A, saw revenue rise 18.1% in the quarter.
