Lender Processing Services Inc. (LPS) has formed LPS Strategic Partnership Group, a new unit intended to establish a network of default-related service providers, including attorneys, title companies, foreclosure trustees, publication and posting providers, and service-of-process companies.
LPS currently provides default-related administrative support services and technology solutions to mortgage servicers, law firms and trustee operations. The company has recently announced a request for proposals (RFP) focused on the attorneys and trustees that provide default legal services. The RFP solicits bids and input from attorneys and trustees to determine the lowest cost and highest service level at which default-related services can be provided in various regions of the country. The attorneys selected as a result of this process will be among the first members of the Strategic Partnership Group.
‘We realized that by reducing the number of attorney partnerships to those who can provide the lowest cost and highest service level and can meet the demands of the regions they are supporting, we will create a more efficient process, which will help borrowers and investors save money,’ says Clay Cornett, president of LPS Default Servicing Solutions. ‘Last year, legal vendors billed nearly $2 billion in default fees. Even a 10 percent reduction would be significant. Such reductions would make it less costly for defaulted borrowers to reinstate or pay off loans in default.’
SOURCE: Lender Processing Services