Posted by Bonnie_CO on 1/10/06 9:54am
Msg #87310
First American Bought Transcontinental...
Wonder if TCTitle's fees are going to be cut down to the same as 1st american?
FIRST AMERICAN TITLE INSURANCE COMPANY TO ACQUIRE TRANSCONTINENTAL TITLE COMPANY
—Acquisition Will Increase First American Market Share in Mortgage Originator Segment—
SANTA ANA, Calif., December 12, 2005
First American Title Insurance Company today announced that it has signed a definitive agreement to acquire privately held TransContinental Title Company, a leading provider of title and settlement services to national mortgage lenders. The acquisition, which is subject to regulatory approvals, is expected to close in late February.
Established in 1987, TransContinental Title is a licensed title insurer in 38 states and has the ability to handle transactions nationwide through its affiliation with First American. Led by its chief executive officer and sole shareholder William Baumgart, TransContinental has become a prominent multistate title agency serving many of the nation’s largest mortgage lenders, with current volumes averaging in excess of 8,000 mortgage transactions per month.
TransContinental reported gross revenues of $61 million in 2004 and projects similar revenues for 2005. As part of the First American family of companies, TransContinental will continue to provide its branded title and closing solutions to its growing customer base, while applying First American’s industry-leading technology and data resources to TransContinental’s operations. Joining First American will enable TransContinental to drive new strategic solutions for its customers and to further improve its strong profitability.
“This acquisition will increase First American’s exposure among mortgage originators through a well-recognized and highly respected brand,” said James J. Dufficy, executive director of First American Title Insurance Company’s National Lenders Advantage Division. “TransContinental has a strong management team and a progressive approach to title and settlement services that parallels First American’s philosophy. The additional choice it presents our customers should help further solidify our leadership as the provider of choice among the leading national mortgage lenders.”
TransContinental will continue to operate under its current name and management structure, working in conjunction with First American’s National Lenders Advantage unit, the company’s existing high-volume, centralized title processing arm formed in 1993 to address the needs of mortgage originators. Offering two highly efficient channels for complete title and settlement services will increase First American’s overall presence in the large lender market segment and is expected to drive revenue growth.
“First American shares our commitment to continuous improvement of the real estate transaction process, and it is with great pride and excitement that we join the First American organization,” said William Baumgart, founder and chief executive officer of TransContinental Title Company. “Leveraging key First American production resources in executing our business strategy will yield notable results for our company, our customers and the end consumers we ultimately serve.”
About TransContinental Title
TransContinental Title Company is a comprehensive, nationwide outsourced provider of title and loan closing services to national and regional lending institutions. Through its two national servicing centers and 12 branch offices, TransContinental supports lenders by providing time-sensitive mortgage services anywhere in the nation. TransContinental is headquartered in Clearwater, Fla. For more information, please visit www.tctitle.com.
About First American
First American Title Insurance Company, the largest subsidiary of The First American Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through nearly 1,700 offices and an extensive network of agents throughout the United States and abroad. The company has its headquarters in Santa Ana, Calif. Information about The First American Corporation’s subsidiaries and an archive of its press releases can be found on the Internet at www.firstam.com.
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Reply by David Kruss on 1/10/06 10:21am
Msg #87320
If your question is will FAT reduce the fees to be paid SS and/or notarys, unfortunately that's like asking about the Bear in the woods. The idea behind this merger is the same as any other business combination: lower costs and more revenue equals greater profits.
The notary business in moving (moved already in many cases) towards lower fees for the same (or more) work, yet the NNA keeps making more brand new notarys each month, each one convinced that it's the route to high pay and easy work. Little do they know!
IMHO, the consolidation of title companies will be followed by a consolidation of the larger SS, who will get together for the same motives as FAT: lower their costs of doing business. The fees paid to the notarys is probably their largest annual cost, so a few dollars less for each signing means significantly increased SS profits.
As "General Bull Moose" sort of said once: "What's good for (insert Title or SS name here) is bad for the notary." (My apology to Al Capp and L'il Abner.)
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Reply by davidK on 1/10/06 11:46am
Msg #87362
Re: David...I think you have hit
SS consolidation is only logical.
One very large SS in Southern California went from one office to four last year, hiring lots of people in the process. They used to typically pay $100 for a single e-doc signing within say a 25-35 mile radius. Then suddenly they announced that since their revenues were being reduced by their customers (true or untrue, who knows) they would now pay a total of $20 for e-docs (including 1st and 2nd) instead of $25 per doc set. As for the notary fee, well only under special and unusual circumstances would they exceed $50, and under no circumstances would the total fee be more than $100.
This particular SS did thousands of signings per year (at least 22,000 signings in 10 months of 2005 that I know of), so if they do the same number of signings in 2005 they will "save" more than $220,000 at just $10 less per signing. Do the math on a higher average savings per signing and now we are talking really big bucks.
And of course, throught this entire process, the borrower still pays the same "notary fee" (or more) as they did in the past.
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