Real estate and mortgage technology company Lender Processing Services Inc. is acquiring mortgage loan origination software vendor LendingSpace. The deal is expected to close later this month, LPS said.
Fulton, Md.-based LendingSpace adds a Web-based correspondent lending platform to LPS’ existing suite of loan origination products. These include Empower, which offers a customized system for large national and regional mortgage lenders, and PCLender, a more standardized offering that targets smaller and mid-sized mortgage companies, credit unions and community banks.
LPS acquired PCLender.com, Inc. in March 2011 for about $9.8 million, according to LPS’ 2011 annual report. Financial terms of the LendingSpace deal were not disclosed.
"The addition of LendingSpace’s robust capabilities expands the number of innovative origination solutions we offer lenders," said Jerry Halbrook, LPS’ senior managing director of origination technology solutions, in a statement.
"We evaluated a number of lending platforms and LendingSpace provided the best product features with the necessary scalability to expand our product suite. More importantly, LPS and LendingSpace share a common commitment to excellence, integrity and customer dedication."
Correspondent lenders originate and fund loans in their own name and, after closing, sell off those loans to larger mortgage lenders, known as wholesale lenders. LendingSpace’s platform allows for collaboration between both types of lenders, and features include loan registration, data and document integration, condition management, and funding, secondary market and investor delivery capabilities, LPS said.
LendingSpace’s products also offer lead management, reverse mortgage capabilities and third-party vendor integration.
All loan origination products brought to LPS from LendingSpace will incorporate LPS’ Loan Quality Gateway, a portal that helps financial institutions meet loan quality requirements from the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac.
Jacksonville-Fla.-based LPS has about 8,000 employees; LendingSpace has more than 80, according to its website.