LandAm Reports $21M Writedown

LandAmerica Financial Group Inc., a provider of real estate transaction services based in Richmond, Va., has announced a noncash writedown of approximately $21 million ($13 million after taxes) of its customer-relationship intangible asset in the lender services segment.LandAmerica said the reason for the writedown is that Fremont General Corp., one of its tax and flood processing customers, had received a cease-and-desist order from the Federal Deposit Insurance Corp. involving lending practices in its mortgage origination business. LandAmerica said it had determined that the "probable loss of business" from Fremont would result in an impairment of the customer-relationship intangible asset at LandAmerica Tax and Flood Services Inc., which it acquired in 2003. The company added, however, that it has "initially concluded" that the development would not impair the goodwill balance of its lender services segment. LandAmerica can be found online at http://www.landam.com.