The firm Lender Processing Services reported Thursday that FHFA foreclosures were way up in April, but the Department of Housing and Urban Development said the company had a data error to get that result.
LPS said foreclosure starts on mortgages insured by the Federal Housing Administration spiked 73% in April.
According to the latest Department of Housing and Urban Development data, servicers started less than 19,000 foreclosures on FHA-backed loans in April, a spokesman said after LPS issued its report.
He added that LPS data did not cover the entire FHA universe, and said the company's extrapolation method resulted in an overestimate.
