LA Court Makes Good Call on Title Policy Coverage
The Louisiana Court made a good call in MGD Partners vs. First American Title, when MGD sued for bad title when the Parrish refused to issue building permits for a new subdivision of homes. Apparently the site had previously been used as a bombing range in WWII. Read the Case at LEGAL
Title Insurance Business Improving
WASHINGTON–(BUSINESS WIRE)– The first quarter of 2011 showed improvement for the title insurance industry, according to the American Land Title Association’s (ALTA) First-Quarter Market Share Analysis. Read More at InsuranceNews
In terms of market share, the Fidelity Family of title insurance underwriters captured 33.7 percent of the market during the first quarter of 2011, while the First American Family garnered 27.7 percent, the Old Republic Family recorded 13.5 percent and the Stewart Family had 12.5 percent. Meanwhile, regional underwriters held 12.6 percent of the market during the first quarter of 2011, up from 10.7 percent market share during the same period a year ago.
MN Closer Jailed for Racketeering
A Forest Lake couple, Cynthia and Steven Strand, are in jail, facing 35 charges that allege $1.2 million was diverted from real estate sales through the couple’s closing company. Strand Closing was licensed as an independent closing service that closed loans for various title insurance agents underwritten by Old Republic, First American and Ticor. See more at MPLS Star Tribune or Kare 11 news
Can A Title Insurance Underwriter Legally Purchase Business?
A recent lawsuit, Edwards v. First American, claims exclusive contracts between title insurance agents and underwriters are illegal under RESPA Section 8.
Point in case: In 1998 First American purchased a small equity stake in Tower City Title Agency in exchange for a contract requiring exclusive use of First American. According to the plaintiff, Denise P. Edwards, the $2 million spent in the transaction was illegal under RESPA. (Before First American purchased the stake in Tower City Title, the company did business with at least three other title underwriters besides First American.) Ms. Edwards lawsuit seeks damages for all of First American’s business conducted through similar exclusive agreements obtained in exchange for what she considers advance “kickbacks” disguised as purchases of equity stakes in title insurance agencies, claiming amounted to an illegal referral of business under the anti-kickback provisions of RESPA Section 8.
More to follow as the lawsuit moves forward.
First American to Split in Two June 1st
Orange County Register
After 10 years of talks, and 1 1/2 years of planning, Santa Ana-based First American Corp. will split into two independent companies on Tuesday …
• The legacy component, consisting mainly of its title insurance and other insurance-related businesses, will be renamed First American Financial, trading on the New York Stock Exchange under the symbol of FAF.
• The newer, technologically advanced real estate and consumer data and analysis businesses formerly known as First American CoreLogic will form the second company, operating simply as CoreLogic. Its stock symbol will be CLGX. For More Detail see Orange County Register
First American to Spin-off Title Company
First American said on Friday that it has received government approval for the spin-off of its core title insurance operations from the company’s growing real estate information services division. The approval clears the last hurdle for First American as it prepares a June 1 spin-off that will create two publicly traded companies: First American Financial Corp. and CoreLogic Inc. First American Financial will house the company’s title insurance business. CoreLogic will include the company’s business data and analysis operations.
See more at Orange County Business Journal
From a valuation standpoint, the spinoff will be the largest split Orange County’s seen in more than a decade. First American currently counts a market value of $3.5 billion.
Home Closing 101: An Educational Initiative of the American Land Title Association
