More than 7.2 Million Loans Behind On Payments; Estimated 1 Million Properties in REO Status

JACKSONVILLE, Fla., Feb. 3 /PRNewswire-FirstCall/ -- The January 2010 Mortgage Monitor report, released by Lender Processing Services, Inc. (NYSE: LPS), a leading provider of mortgage performance data and analytics, showed that home loan delinquency rates in the U.S. have now surpassed 10 percent. Factoring in foreclosures in process, according to the data in LPS' database, the total non-current rate sits at 13.3 %. When extrapolated to reflect the entire mortgage industry, this rate indicates that more than 7.2 million mortgage loans are now behind on payments. In addition, an estimated one million properties are now owned by banks. The January 2010 Mortgage Monitor report is an in-depth summary of mortgage industry performance indicators based on data collected as of December 31, 2009.

Within the population of loans that were current as of year-end 2008, the percent of "new" serious delinquencies is 4.64 percent – higher than any other year analyzed for the same period. Of loans that were current as of December 31, 2008, by December 2009 there were 2.3 million new loans that were considered seriously delinquent. Prime loans, including agency, non-agency and jumbo, have experienced deterioration at a worse pace on a relative basis than subprime, FHA and all loans as a whole. Within the prime loans category, loans with current unpaid principal balances between $417,000 and $600,000 have performed the worse.

The Mortgage Monitor report also indicates that 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as more origination months are added to the pool of loans. This improvement is attributed to more restrictive underwriting guidelines. The report also noted that liquidity is still not available where it is needed most.

Other key results from LPS' January 2010 Mortgage Monitor include:

    
    
         Total U.S. loan delinquency rate:       10.0 percent
         Total U.S. foreclosure inventory rate:  3.2 percent
         Total U.S. non-current* loan rate:      13.3 percent
         States with most non-current* loans:    Florida, Nevada, Mississippi, 
                                                 Arizona, Georgia, California,
                                                 Indiana, Michigan, Illinois 
                                                 and Ohio
         States with fewest non-current* loans:  North Dakota, South Dakota, 
                                                 Alaska, Wyoming, Montana, 
                                                 Nebraska, Vermont, Colorado, 
                                                 Oregon and Washington
    
    *Non-current totals combine foreclosures and delinquencies as a percent of 
    active loans in that state.

Note: Totals based on LPS Applied Analytics' loan-level database of mortgage assets.

LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from approximately 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report.

To review the full report, listen to a presentation of the report or access an executive summary, visit http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx.

About Lender Processing Services

Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology and services 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 www.lpsvcs.com.

SOURCE Lender Processing Services, Inc.

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