Posted on 21 April 2010.
The PROOF is in coding…Figure this one out!
DJSP’s Expertise and Comprehensive Electronic Platform Will Expedite Lender’s New, Alternative Foreclosure Initiative
PLANTATION, Fla., April 21 /PRNewswire-FirstCall/ — DJSP Enterprises, Inc., (Nasdaq: DJSP) one of the largest providers of processing services for the mortgage and real estate industries in the United States, today announced that it has been selected to process files for a national mortgage lender, one of the country’s top mortgage servicers, to be one of the primary vendors supporting its national foreclosure alternative program.
DJSP will process files for this national mortgage servicer’s national “deed in lieu” initiative, a major component of its foreclosure alternative program, which is designed to help homeowners who are behind in their mortgage payments transition out of their homes without having to go through the foreclosure process.
David Stern, President and CEO of DJSP Enterprises, Inc. adds, “We are extremely excited to be a part of this servicer’s program, an initiative that is seen as a joint effort between homeowners and mortgage lenders to help resolve the nation’s housing crisis. This transition process is viewed by many in the industry as being beneficial to both homeowners and mortgage holders. For the homeowners, it is less damaging to their credit scores, generally relieves them of any deficiencies and allows them to stay in their homes for a transitional period of time. For the mortgage holder, it reduces the legal costs and expedites the transfer process back to them. Ultimately this reduces the carrying costs for our client compared to a foreclosure. In addition, the program includes a provision for relocation assistance provided by the lender to the homeowner. Due to client demand we have moved to aggressively grow this division of our business.”
Mr. Stern concluded, “Because of the quality of services provided to this national mortgage lender for years, they understand and appreciate the level of professionalism and efficiency we bring to all aspects of the financial services business. They also understand that DJSP’s electronic platform is uniquely positioned to underpin this initiative, as it is able to provide the quality of service needed at a reasonable price. Additionally, following the closing of our recently announced agreement to acquire the national title insurance agency, Timios, Inc., we will have the control necessary to meet client deadlines on a consistent basis across the country. Timios will become a wholly owned subsidiary of DJSP, providing title search, document preparation, signing services and title policies on deed in lieu’s nationwide. Expanding our ability to fulfill title and closing services beyond Florida will give us the ability to provide the same high level of service our clients enjoy with us in Florida. We are looking forward to offering this best in class service to other clients in the very near future.”
The closing of the previously announced acquisition of Timios, Inc. is subject to customary due diligence, closing conditions and regulatory approvals.
About DJSP Enterprises, Inc.
DJSP is the largest provider of processing services for the mortgage and real estate industries in Florida and one of the largest in the United States. The Company provides a wide range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services. The Company’s principal customer is the Law Offices of David J. Stern, P.A. whose clients include all of the top 10 and 17 of the top 20 mortgage servicers in the United States, many of which have been customers for more than 10 years. The Company has approximately 1000 employees and contractors and is headquartered in Plantation, Florida, with additional operations in Louisville, Kentucky and San Juan, Puerto Rico. The Company’s U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines that provides data entry and document preparation support for the U.S. operation.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about DJSP Enterprises, Inc. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions, changing interpretations of generally accepted accounting principles; outcomes of government or other regulatory reviews, particularly those relating to the regulation of the practice of law; the impact of inquiries, investigations, litigation or other legal proceedings involving the Company or its affiliates, which, because of the nature of the Company’s business, have happened in the past to the Company and the Law Offices of David J. Stern, P.A.; the impact and cost of continued compliance with government or state bar regulations or requirements; legislation or other changes in the regulatory environment, particularly those impacting the mortgage default industry; unexpected changes adversely affecting the businesses in which the Company is engaged; fluctuations in customer demand; the Company’s ability to manage rapid growth; intensity of competition from other providers in the industry; general economic conditions, including improvements in the economic environment that slows or reverses the growth in the number of mortgage defaults, particularly in the State of Florida; the ability to efficiently expand its operations to other states or to provide services not currently provided by the Company; the impact and cost of complying with applicable SEC rules and regulation, many of which the Company will have to comply with for the first time after the closing of the business combination; geopolitical events and changes, as well as other relevant risks detailed in the Company’s filings with the U.S. Securities and Exchange Commission, (the “SEC”), including its report on Form 20-F for the period ended December 31, 2009, in particular, those listed under “Item 3. Key Information – Risk Factors.” The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.
David J. Stern
Chairman and CEO
DJSP Enterprises, Inc.
Executive Vice President and CFO
DJSP Enterprises, Inc.
SOURCE DJSP Enterprises, Inc.