Jfalma
16/06/11 23:38
Ha respondido al tema
Washington Mutual demanda a la FDIC por 17 billones US$ + daños
Lender Processing cuts Q2 profit outlook; shares fall
Thu Jun 16, 2011 5:01pm EDT
(Reuters) - Lender Processing Services Inc (LPS.N) lowered its second-quarter earnings outlook, saying it will be hurt by higher regulatory and legal expenses, sending its shares down 6 percent.
LPS, which handles more than half of U.S. mortgage foreclosures, faces various legal and regulatory issues, mainly over its alleged role in wrongful foreclosure practices.
Last month, LPS said U.S. regulators filed a complaint to recover losses of $154 million from an alleged breach of contract by its unit with Washington Mutual Inc (WAMUQ.PK).
The Federal Deposit Insurance Corp (FDIC) cited 220 appraisals between June 2006 and May 2008, and said the company's unit, LSI Appraisal LLC, neglected duty and didn't conform with law and regulations in appraising these claims.
The mortgage processing services provider now sees second-quarter adjusted earnings at 54-56 cents per share, down from its prior view of 79-82 cents per share.
Analysts on average were expecting a profit of 80 cents a share, according to Thomson Reuters I/B/E/S.
The company, which helps banks manage mortgage foreclosure documentation, said its profit outlook is impacted by fewer mortgage defaults and sluggish origination activity.
On Monday, LPS named former Florida Deputy Attorney General Joe Jacquot as its senior vice-president for government affairs.
He will be responsible for analyzing and responding to pending legislation and regulation affecting the company.
Shares of the company were down 6 percent at $22.00 in extended trading on Thursday.
(Reporting by Aditi Sharma in Bangalore; Editing by Maju Samuel
Enlace a la noticia:
http://www.reuters.com/article/2011/06/16/us-lenderprocessing-idUSTRE75F71F20110616?feedType=RSS&feedName=globalMarketsNews&rpc=43