Ever since its was revealed that federal investigators were taking a look into their mortgage foreclosure practices Lender Processing Services Inc., the company has maintained that the search would not result in numerous financial penalties by way of fines and lawsuits. The investigations look to be doing just that as LPS lowered its second-quarter earnings forecast from 79¢ to 82¢ cents per share to 54¢ to 56¢ cents per share last Thursday.
The catalyst behind the LPS breakdown is the intimate relationship they share with lenders, who have slowed their foreclosure process in light of allegations of forged documents by LPS subsidiaries. The company is also facing increased costs because of pressure put on customers and regulators.
Last week LPS stock fell to $20.42, down $2.95, and Macquarie Capital analyst Kevin McVeigh lowered his rating on the stock from "outperform" to "neutral." If one thing is certain for the company, it's that investors will take a more observational stance until investigations come to a close and the effects on LPS come full circle.
If you are having trouble paying a mortgage or if you are currently in foreclosure, contact a foreclosure defense attorney in Jacksonville today to discuss your case and find out what options may be available.
