Lender Processing Services will acquire mortgage origination technology developer LendingSpace in a deal expected to close later this month.
Jacksonville, Fla.-based LPS said the LendingSpace product suite features a correspondent lending platform, “including full Web-enabled capabilities to enhance collaboration between retail originators and their correspondent lending partners.”
LPS said that LendingSpace technology platform will augment its two existing LOS platforms. A spokesperson confirmed to Mortgage Technology that LPS intends to continue to operate LendingSpace as a standalone offering, giving the origination and servicing vendor three distinct LOS products.
Financial terms of the deal were not disclosed. The acquisition of Fulton, Md.-based LendingSpace comes 16 months after LPS acquired PCLender, another Web-based loan origination system that targets midsize originators, typically mortgage lenders, credit unions and community banks. LPS also develops the Empower LOS for larger mortgage lenders.
“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 LPS origination technology solutions, in a press statement.
“We evaluated a number of lending platforms and LendingSpace provided the best product features with the necessary scalability to expand our product suite,” Halbrook added.
The acquisition also provides LPS another venue to promote services and products available through RealEC, a Houston-based subsidiary that develops a communication medium and delivery channel of third-party underwriting services for originators. LPS said it will integrate RealEC’s Loan Quality Gateway into the LendingSpace product suite.
Using the Loan Quality Gateway, underwriting and compliance products that lenders order from various third-party providers are securely stored in a centralized location to promote loan-level reviews during the origination process. The system also includes a rules engine programmed to verify loans for government-sponsored enterprise and Federal Housing Administration lending requirements, which can also be customized to perform similar reviews based on private-label investor requirements.
The deal comes just two weeks after LOS vendor Mortgage Cadence announced its acquisition of CU mortgage technology vendor Prime Alliance.