LPS Management Addresses Litigation Concerns
Lender Processing Services, Inc. (NYSE: LPS) management defended its business practice and its arrangements with its customers and its relationships with various law firms from their current litigation.
In a research note, Oppenheimer writes, "We believe LPS management provided a strong defense regarding various litigation concerns that have mushroomed in recent days. A similar previous case against LPS in Texas two years ago was dismissed without prejudice, which could bode well for LPS in future cases. That said, the overhang/uncertainty surrounding each case is likely to persist. Our concerns have less to do with the propriateness of LPS's default services procedures/processes and more to do with the potential peaking of delinquency/foreclosure trends. We also suspect increasing political rhetoric as well as greater internal scrutiny of lenders'/services' own processes could further elongate the flow of seriously delinquent loans into foreclosure."
LPS shares are currently trading up on the day at $27.96.
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