Zacks_Analysts' Blog : New CEO for Lender Processing - Analyst Blog

Mortgage servicing provider Lender Processing Services Inc (LPS) recently announced the appointment of Hugh R. Harris as its new President and Chief Executive Officer (CEO) and also a member of the Board of Directors, effective October 5, 2011. Harris replaces interim President and CEO Lee Kennedy, who had stepped in after Jeffrey S. Carbiener resigned as the company’s CEO in July due to health issues.

Harris had previously served as the president of the financial services technology division at Fidelity National Financial, Inc (FNF) and Fidelity National Information Services, Inc (FIS). Lender Processing Services was spun off from Fidelity National Information Services earlier in July 2008.

Prior to joining Fidelity National, Harris was the president and CEO of mortgage company HomeSide Lending Inc.  He has also served as president of Mortgage Corporation of the South, as vice chairman of BancBoston Mortgage Corporation and was actively associated with the Mortgage Bankers Association of America.

For the third quarter of 2011, the company expects revenues to decline in the mid single-digit range. Moreover, market conditions for origination and default businesses are expected to remain challenging for the rest of the year.

However, we remain optimistic regarding the appointment of Harris as the new CEO of Lender Processing given his solid industry knowledge and experience and strong customer relationships. We expect the company to attain new heights under his leadership.

Consequently, we maintain our long-term Neutral recommendation on the stock. Lender Processing currently retains a Zacks #4 Rank (short-term Sell rating).

Lender Processing headquartered in Jacksonville, Florida, provides integrated technology and outsourced services to the mortgage lending industry. The company’s products and services span the entire life cycle of a mortgage, from origination and servicing, to foreclosure.