According to the MarketWatch story (click here) by Bhattiprolu Murti, Fidelity National Information Services Inc.'s (FIS) Lender Processing Services Inc. unit Thursday filed for its proposed spinoff from the company.
"That unit currently handles more than 50 percent of the mortgage loans processed in
Fidelity, a Jacksonville, Fla., financial data-processing company also said it can't predict now how it would be affected by Fannie Mae and Freddi Mac's (FRE) adoption of a new home valuation code of conduct.
Separately, the company said government-sponsored enterprises Fannie and Freddie recently adopted the home valuation code of conduct, which prohibits mortgage lenders from using any appraisal report if there are any potential conflicts of interest.
Fannie and Freddie have agreed that they won't purchase any single-family mortgage loans - other than government-insured loans - originated after Jan. 1, 2009, from mortgage originators that haven't adopted the code for those loans.
In a separate Wall Street Journal article (click here)
Fidelity National Information Services Inc., which is seeking federal approval to spin off a unit that processes data for major mortgage providers, warned that its business could be harmed by heightened government inquiry into the U.S. lending crisis and new regulations that may result.
In a filing with the Securities and Exchange Commission, Fidelity National said that lawsuits or tighter regulations that may ensue from state and federal probes of mortgage-lending practices in response to the housing-market collapse "could have adverse consequences that could affect our business."
FIS says at this time it is unable to predict the ultimate effect of the code on its business or results of operations, but intends to participate in the comment process that ends April 30.
Fidelity National could also benefit from the new regulations, as this could result in a flood of business for its subsidiary LSI from lenders seeking government-sanction
ed home valuations.
For the full MarketWatch story (click here)
Recent Comments