Las Vegas real estate, mortgage, appraisal blog

According to an article in Market Watch, Fidelity National is going to participate in the comment period for the new HVCC before the cutoff date, April 30th. Fidelity has also said they are unsure of how they will be affected by the changes.

In a filing with the Securities and Exchange Commission, Fidelity National said it will contribute the unit's assets to Lender Processing Services in exchange for additional shares of common stock of the new unit, and up to $1.6 billion in new debt of the unit.

Following the contribution, Fidelity will distribute all the shares of the newly formed unit to its shareholders and exchange its debt for an equal amount of the company's existing debt.

 

Fidelity National, which provides credit- and debit-card processing services, said last October its board has supported a plan to spin off its Lender Processing Services division into a separate public company.

 

Fidelity National Information Services Inc., which is seeking federal approval to spin off a unit that processes data for major mortgage providers, warned that its business could be harmed by heightened government inquiry into the U.S. lending crisis and new regulations that may result.

In a filing with the Securities and Exchange Commission, Fidelity National said that lawsuits or tighter regulations that may ensue from state and federal probes of mortgage-lending practices in response to the housing-market collapse "could have adverse consequences that could affect our business."