Altisource Discontinues Lender Placed Insurance Brokerage Business
November 12 2014 - 7:30AM
Business Wire
Altisource Portfolio Solutions S.A. ("Altisource") (NASDAQ:ASPS)
today announced that it is discontinuing its Lender Placed
Insurance (“LPI”) brokerage line of business.
Altisource believes that it developed a lender placed insurance
program that is unique in its benefits to consumers and investors.
The program lowers premium rates compared to previous program
rates, promotes ongoing premium rate competition among underwriters
to further reduce premiums and will include an offer to borrowers
to purchase voluntary homeowner’s insurance to avoid having their
insurance placed by their servicer.
However, given the uncertainties with industry-wide litigation
and the regulatory environment, Altisource believes it is in the
best interest of the Company and its shareholders to discontinue
this line of business and continue to focus attention and resources
on developing and delivering leading innovative technology-driven
products and services for the real estate and mortgage markets that
will provide benefits to consumers, lenders, originators and other
participants.
Homeowners with insurance policies placed via this program will
experience no impact to their coverage as a result of this
decision. The discontinuation of this business line is expected to
reduce Altisource’s quarterly diluted earnings per share by an
average of approximately $0.50 - $0.65 for the period October 1,
2014 through December 31, 2015.
Forward-Looking Statements
This press release contains forward-looking statements that
involve a number of risks and uncertainties. Those forward-looking
statements include all statements that are not historical fact,
including statements about management’s beliefs and expectations.
Forward-looking statements are based on management’s beliefs as
well as assumptions made by and information currently available to
management. Because such statements are based on expectations as to
future economic performance and are not statements of historical
fact, actual results may differ materially from those projected.
The Company undertakes no obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise. The risks and uncertainties to which forward-looking
statements are subject include, but are not limited to:
Altisource’s ability to retain existing customers and attract new
customers; general economic and market conditions; governmental
regulations, taxes and policies; availability of adequate and
timely sources of liquidity; and other risks and uncertainties
detailed in the “Forward-Looking Statements,” “Risk Factors” and
other sections of the Company's Form 10-K and other filings with
the Securities and Exchange Commission.
About Altisource
Altisource is a premier marketplace and transaction solutions
provider for the real estate, mortgage and consumer debt industries
offering both distribution and content. We leverage proprietary
business process, vendor and electronic payment management software
and behavioral science based analytics to improve outcomes for
marketplace participants. Additional information is available at
www.altisource.com.
Altisource Portfolio SolutionsMichelle D. Esterman, +352 2469
7950Chief Financial OfficerMichelle.Esterman@altisource.lu
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