We had reported earlier that Lender Processing Services (LPS) was leaving the Real Estate Owned (REO) Industry. We reached out to Michelle Kersch, Senior Vice President of Corporate Communications and Marketing, LPS. She confirmed what we thought and clarified LPS’ position:
Earlier this year, LPS made a strategic business decision to exit the asset management business, related to the management of REO properties on behalf of our servicer clients. LPS continues to provide property preservation services to clients to support the maintenance of REO properties, including winterization, debris removal, lawn cutting and others services.
So, in a nutshell, LPS is moving out of the Asset Management portion of REO and retaining the day-to-day operations Contractors are primarily concerned with. The biggest question on the horizon will ultimately be after cutting loose this albatross how will it truly impact the boots on the ground. By-in-large, LPS rarely deals with the Contractors whom perform the services opting instead for the larger National Vendors whom mill the work out to Regionals and then to Contractors. We hope that with a bit less drama on the horizon, LPS may consider turning its attention to the Field Service Management opportunity. A great first step would be to reach out to some boots on the ground Contractors and begin realizing the dollar for dollar on their properties as opposed to the 28 cents on the dollar which actually reaches the Contractor after all the Order Mills get their cut.