Lender Processing Services Inc. (LPS) has announced that its LPS Applied Analytics division has launched the LPS Industry Lien Matching service, which allows mortgage servicers to identify a match between a first and a subordinate lien and then transport this vital data from one servicer to another, which supports co-modification efforts for subordinate liens following a first-lien modification. As part of the loan modification process, LPS Industry Lien Matching provides participating servicers with the transparency needed to identify all loans associated with a first lien, which is especially critical when a property has subordinate liens being serviced by different servicers.
LPS maintains a servicing database of subordinate liens that are eligible for co-modification. Information from this database is used to match a first lien modification to a subordinate lien. When there is a match, the servicer of the second lien is notified of the first-lien modification status and is provided with the information necessary to offer a modification of the subordinate lien.
"Today's economic climate, heavily influenced by increased government programs and regulatory oversight, has driven loan modifications and workouts to all-time highs," said Dan Berman, president of LPS Applied Analytics. "The LPS Industry Lien Matching service offers an unprecedented ability for broad, holistic co-modification solutions across the mortgage industry."