Barclays Maintains an 'Overweight' on Lender Processing Services (LPS): Thoughts on Consent Order with Federal Agencies
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Price: $37.30 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Lender Processing Services (NYSE: LPS), PT $38.
Barclays analyst says, "Yesterday, the Federal Reserve released a series of consent orders with most of the major mortgage servicers and key processors such as LPS, the culmination of a known inter-agency review that had begun in November. The consent order shows that federal regulators have not come to any conclusions that LPS should be held liable for wrongful foreclosures, although it suggests that LPS may need to invest in additional resources to oversee foreclosure activity more effectively, and advocates further review of past services provided in 2008-2010 and LPS' present default management business."
"For LPS, we estimate that at least some of the cost associated with hiring a
consultant is accounted for in guidance and estimates (which incorporate
legal/regulatory expense continuing at the elevated 4Q10 run rate), while noting the potential for some incremental costs associated with a ramp-up in personnel and increased oversight going forward (with the third-party review pending and federal regulators still likely to stay close to this process)."
For more ratings news on Lender Processing Services click here and for the rating history of Lender Processing Services click here.
Shares of Lender Processing Services closed at $30.19 yesterday.
Barclays analyst says, "Yesterday, the Federal Reserve released a series of consent orders with most of the major mortgage servicers and key processors such as LPS, the culmination of a known inter-agency review that had begun in November. The consent order shows that federal regulators have not come to any conclusions that LPS should be held liable for wrongful foreclosures, although it suggests that LPS may need to invest in additional resources to oversee foreclosure activity more effectively, and advocates further review of past services provided in 2008-2010 and LPS' present default management business."
"For LPS, we estimate that at least some of the cost associated with hiring a
consultant is accounted for in guidance and estimates (which incorporate
legal/regulatory expense continuing at the elevated 4Q10 run rate), while noting the potential for some incremental costs associated with a ramp-up in personnel and increased oversight going forward (with the third-party review pending and federal regulators still likely to stay close to this process)."
For more ratings news on Lender Processing Services click here and for the rating history of Lender Processing Services click here.
Shares of Lender Processing Services closed at $30.19 yesterday.
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