LPS’ Mortgage Monitor Report Shows Foreclosure Starts Increased in June; QRM Could Have Impacted Nearly Half of All Mortgages Since 2005

JACKSONVILLE, Fla. – August 4, 2011 – The June Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that, while still down 16.4 percent from the start of the year, foreclosure starts increased by more than 10 percent in June 2011. Delinquencies were also up, but incrementally, showing a 2.4 percent increase over May. As of the end of June, 4.1 million loans were either 90+ days delinquent or in foreclosure, representing a 12.8 percent increase since June 2010.

Foreclosure timelines continue their upward trajectory, with the average loan in foreclosure having been delinquent for a record 587 days. More than 40 percent of 90+-day delinquencies have not made a payment in more than a year. For loans in foreclosure, 35 percent have been delinquent for more than two years.

Looking at the differences between judicial and non-judicial foreclosure states, the LPS data shows that the foreclosure pipeline ratio – that is, the number of loans either 90+ days delinquent or in foreclosure divided by the six-month average of foreclosure sales – is more than three times as high for judicial foreclosure states. Additionally, the slowdown associated with foreclosure moratoria has been almost exclusively felt in judicial states.

LPS also examined historical data to estimate the potential impact of the proposed Qualified Residential Mortgage (QRM) provision of the Dodd-Frank Bill. The data shows that, since 2005, nearly half of all loans originated in the United States could have been ineligible under QRM. At the same time, LPS found that the potential impact of the Federal Housing Finance Agency (FHFA) high-cost conforming limit expiration would be minimal, accounting for only one percent of originations over the last three years.

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

Total U.S. loan delinquency rate:                   8.15%

Month-over-month change in delinquency rate:         2.4%

Total U.S foreclosure pre-sale inventory rate:            4.12%

Month-over-month change in foreclosure pre-sale inventory rate:     0.2%              

States with highest percentage of non-current* loans:                       FL, NV, MS, NJ, IL

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

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.


(1)        Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.

(2)        All whole numbers are rounded to the nearest thousand.

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, Inc. (LPS) is a leading provider of integrated technology, services and mortgage performance data and analytics to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop®), portfolio retention and default, augmented by the company’s award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS’ Mortgage Servicing Package (MSP). LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit

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Media contact:                                                                       

Michelle Kersch,(904) 854-5043


Investor contact:

Parag Bhansali, (904) 854-8640


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