Lender Processing Services (LPS) provides the mortgage industry with software to assist lenders from start to finish, from checking credit and appraisals to loan setup, processing, and closing services, and default management and foreclosure services. LPS also offers data and analytics for the mortgage and capital markets industries and provides default management services to the secondary mortgage market. By dollar volume, LPS processes about half of all US mortgages, serving many of the top 50 US banks. The software provider has operations in almost 10 US states. In 2014 Fidelity National Financial acquired LPS and merged it with other operations into a subsidiary called Black Knight Financial Services.
LPS has locations throughout the US in the states of Arizona, California, Colorado, Florida, Minnesota, Nevada, Pennsylvania, and Texas.
Sales and Marketing
A significant portion of the company's potential customers is targeted through direct and/or indirect field sales, as well as inbound and outbound telemarketing efforts. Marketing efforts include direct marketing, print advertising, media relations, public relations, tradeshow and convention activities, and seminars.
Wells Fargo is LPS' largest customer, bringing in about 21% of its total revenues. JPMorgan Chase is the company's second largest customer, making up about 15%. Overall LPS' five largest customers accounted for 53% of its total revenue in 2012.
Since 2010 LPS has seen its revenues and profits decline sizably as a decrease in foreclosures has reduced demand for its default management services. After experiencing significant revenue and profit drops in 2011, the company's net revenues remained flat for 2012, and it suffered a 27% drop in profits. The declines were attributed to about $192 million in legal and regulatory accrual expenses the company had to pay in addition to increased expenses it paid to refinance its debt.
LPS grows by buying up companies to expand its markets and offerings. In 2012 it bought mortgage loan origination software provider LendingSpace, which added scalability to LPS' portfolio. The year before, it snapped up PCLender.com, a provider of Web-based mortgage lending software, in a deal that complemented its LPS Empower software platform.
LPS has also trimmed some fat to stay focused on its core products and to divest under-performing operations. In 2012 it sold its real estate tax services business (part of its origination services) to private investment firm LERETA, LLC. Also that year LPS sold its local government business to Constellation Software. The division sold software used by county and local governments to automate document and workflow management, court case management, county recording, and property appraisal and tax collections.