Radian Group is adding 40-state title insurer and settlement services company Entitle Direct to its operations in a move aimed at complementing the geographic reach of its existing title agency.
"We are delighted to welcome Entitle to the Radian family of companies, expanding our capabilities and providing our customers across the country with the title insurance and settlement services they want and need. This is another example of the progress we are making to reposition our services segment for sustained profitability, by focusing on and investing in the products and services that are core to that business," Rick Thornberry, Radian's chief executive officer, said in a press release.
Terms of the transaction were not disclosed.
"While the price was immaterial, we believe there’s significant opportunity in expanding our geographic footprint for title services," Radian spokesperson Emily Riley said in an email. "Our existing ValuAmerica subsidiary combined with our new Entitle licenses will give us significant reach, and help us serve more customers across the U.S. with title and settlement services."
Entitle Direct will maintain its branding, products and services through its offices in Corona, Calif.; Independence, Ohio; Austin, Texas; and Pittsburgh, according to the press release.
Eric Ray, Radian's senior vice president of technology and transaction services, will be responsible for the strategic direction and leadership of the title and settlement services business line.
Lower mortgage origination volumes are putting pressure on title insurer profitability and analysts say there could be more merger and acquisition activity this year as a result.
Earlier this month title insurer Fidelity National Financial disclosed that it plans to solidify its position in the market by purchasing Stewart Information Services.