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June 13, 2008
Is BofA-Countrywide Deal Bad News for FIS?
Fidelity National Information Services (FIS), Inc. could be facing a loss in business when Bank of America (BofA) and Countrywide Financial Corp. complete their merger later this year.
In a recent filing with the Securities & Exchange Commission (SEC), FIS said its subsidiary Lender Processing Services (LPS), Inc. stands to lose business with Bank of America announcing the possibility that it will consider no longer using the mortgage processing and appraisal services now provided by LPS after its merger with Countrywide. FIS says BofA is leaning towards handling those particular functions in-house.
In the filing, FIS added, “These services together generated approximately 1.4-percent of FIS consolidated and 4-percent of LPS revenue in 2007. If this decision becomes final, the Company anticipates that a mortgage processing conversion would take from 12 to 30 months after completion of the merger.”
Posted by S. Germain at June 13, 2008 08:10 AM