LPS issues announcement on MLS Services division

by Victor Lund on September 14, 2011

 

LPS

Transfers Products to Newly-Formed Real Estate Digital (RED), and Enters into a Joint Marketing Agreement with RED.

In an effort to expand its commitment to and focus on the MLS market, LPS has merged its MLS business unit into LPS Applied Analytics and has sold a number of its real estate products to Real Estate Digital, LLC (RED), with whom LPS entered into a joint marketing agreement.  This new alignment will enable LPS MLS Solutions to expand and streamline its current offerings to enhance MLS solutions and better serve our customers and their clients.

“Our assimilation into LPS Applied Analytics is great news for our customers and their members,” said Rich Lull, SVP, LPS MLS Solutions. “First, we have opened up our MLS systems to rapidly deploy innovative technology and services for our MLS members, as demonstrated with the recent version 5 release of our Paragon MLS System. Second, there is no greater demand from MLS’s, their stakeholders, and their members than for insightful intelligence into the value and risks of a real estate transaction to ensure the agent is ‘relevant and valuable’, hence our excitement to leverage the data and analytic assets of LPS Applied Analytics. Lastly, MLS’s need to augment their membership-based revenue model with programs to generate non-dues revenue, for which we will leverage the Applied Analytics products, as well as the products provided through our agreement with RED and other industry-leading third parties,” said Lull.

LPS Applied Analytics’ comprehensive data and analytics solutions provide unparalleled insight into performance trends, proactive risk management and collateral value that are driving the mortgage market today. With this strategic change, the LPS MLS Solutions team will focus its development on MLS platform systems, aggregation and delivery of various data such as listings, public records, loan data, foreclosures, and more. In addition, LPS Applied Analytics offers decision-support applications that convert that data into useful intelligence.

“We see the MLS as the ideal channel to deliver this content to the real estate professional to enable better and faster real estate transactions” said Dan Berman, president, LPS Applied Analytics. “The role of the MLS is changing in response to technology, business models, and the demographics of the consumer. Their members expect the MLS to deliver the information necessary to stay current with their more knowledgeable clients. Serving that need is our goal.”

LPS sold product assets to RED and immediately entered into a joint marketing agreement enabling LPS MLS Solutions to continue to license those products into the MLS market. The products include rDesk® Websites, Real Estate and Living Media, reDataVault, TransactionPoint, DocCentral, FormCentral, MLS Portal, Neighborhood & School Reports, rDesk CRM, rDesk CMA and rDesk IDX.  These products will continue to be a critical part of the LPS MLS Solutions product offering, in addition to a rapidly expanding network of third party partners to broaden the solution set.

RED was created through a management buyout for select business lines and operations from  LPS’ Real Estate Group. Senior executives Jay Gaskill, Prem Luthra, Mike Kovar and John Hensley will continue in their roles leading the newly formed company.

LPS MLS Solutions is excited about the opportunities this new structure affords and looks forward to continuing to be a valued partner in the MLS channel.

If you have any questions or want to chat, contact Rich Lull at 913.693.6124.

{ 4 comments… read them below or add one }

robertdrummer September 15, 2011 at 7:01 am

@victorlund

Correct me if I’m wrong, but when I read Rich Lull’s quote

“…MLS’s need to augment their membership-based revenue model with programs to generate non-dues revenue, for which we will leverage the Applied Analytics products…”

That sounds like LPS will be competing with Core Logic’s Partner InfoNet which competes with RPR whose data and revenue is provided by LPS.

Does this mean LPS is going to compete with RPR?

Reply

Victor Lund September 15, 2011 at 7:18 am

Hey Robert,

Interesting thesis, but no. LPS will retain the existing contract with RPR under the split up. My understanding is that LPS has the exclusive right to sell RPR derivative reporting products to Financial and Government institutions. RED, or Real Estate Digital – the new company founded by former LPS Executives, will continue to provide data aggregation services to LPS as a subcontractor.

I think what you are sniffing here is that new MLS platforms are all aiming in the direction of supporting MLSs and Associations who have non-dues revenue generating programs. I am looking forward to moderating a session at CMLS on this topic, October 5th in Tucson – and am pretty sure that you are a panelist.

Today, LPS is way out in front of most MLS vendors in terms of non-dues revenue products. They have attained significant adoption with their MLS Consumer Facing Website product; Real Estate and Living Media (REALM) product; and their rDesk agent IDX, CRM, CMA, and website products. What is interesting is that all of those product lines were sold to RED, and LPS is a reseller/wholesale partner of RED. Perhaps this move was to allow RED to build similar partnerships with CoreLogic, Rapattoni, Tarasoft, FBS, Stratus, DiscoverMLS, and other significant vendors.

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Victor Lund September 15, 2011 at 7:20 am

I guess I should have included the full list of non-dues revenue products like document and transaction management, et al – but this is not intended to be an ad for LPS. #justsayin

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robertdrummer September 15, 2011 at 12:42 pm

I must not have been the only one wondering about the connection:

Quoting from the RPR email….

This e-mail is a courtesy message from RPR about the press release issued yesterday from Real Estate Digital (RED), announcing a management buy-out of select assets of LPS Real Estate Group and the formation of a new company. As you may be aware, RPR contracts data aggregation services for the RPR website from LPS. Under this new structure, RPR’s service will continue to be contracted through LPS, which will have an agreement with RED to fulfill LPS’s obligations to RPR. RPR does not have any direct relationship with the new company.

RPR has held a number of conversations regarding this announcement with the management of LPS, and we have been assured of continuity in the services being provided to RPR. We also believe that this new arrangement will have benefits for RPR in the future.

The RPR Management team is confident that this transition should not affect our current MLS content mapping schedules and MLS launch schedules.

If you have any questions, please feel free to contact the RPR Management Team or your Industry Relations representative at any time.

Sincerely,
Dale L. Ross
CEO-Realtors Property Resource, LLC
daler@narrpr.com

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