LPS Management Addresses Litigation Concerns

Lender Processing Services, Inc.

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.