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""Lender Processing Services, Inc."":http://www.lpsvcs.com (LPS) said Thursday that it is forming a strategic partnership group to establish a network of default-related service providers.
The Florida-based mortgage technology and services firm says the goal of the network is to lower the cost of default services and create efficiencies for borrowers, mortgage servicers, and investors.
[IMAGE] [COLUMN_BREAK]Members of the network will include 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 said it recently announced a Request for Proposal (RFP) focused on the attorneys and trustees that provide default legal services, soliciting bids from these parties ""to determine the lowest cost and highest service level"" in various regions of the country.
LPS says the attorneys selected as a result of this process will be among the first members of the new strategic partnership group network.
Clay Cornett, president of LPS Default Servicing Solutions, said, ""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.""
