LPS 
By
JACKSONVILLE, Fla. - January 6, 2012 - The November Mortgage
Monitor report released by Lender Processing Services, Inc.
(NYSE: LPS) shows that while mortgage delinquencies at the
end of November 2011 were nearly 25 percent less than the
January 2010 peak, the trend toward fewer loans
becoming delinquent, which dominated 2010 and the first
quarter of 2011, appears to have halted. At the same time,
new problem loans - those loans seriously delinquent as of
the end of November that were current six months prior - have
not improved significantly in the last year. This degree of
stagnation indicates that while the situation is not getting
markedly worse, it is not improving either, and inventories
of troubled loans remain significantly higher than pre-crisis
levels across the board.
The November mortgage performance data also showed both new
and repeat foreclosure starts dropped sharply in November,
down nearly 30 percent from the month prior. As late-stage
delinquencies in the pipeline still number close to 2
million, the sharp drop is more indicative of the impact of
ongoing document reviews, additional state legislation and
new regulatory requirements rather than a shift in trend.
Prepayment activity - a key indicator of refinances -
remained strong after several consecutive months of growth;
however the October origination data showed a
month-over-month drop of nearly 12 percent. While still the
second highest level for the year, originations through
October 2011 were down 21 percent vs. the same period in 2010
and down almost 30 percent vs. 2009.
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