Stewart Information Services Corp., Houston, saw its net earnings increase 319% from 2Q11, as it benefited not only from increased orders, but also from back office consolidation and other expense reduction initiatives.
The company said that less than 30% of its new business in the quarter was because of refinancings, which typically have lower margins than the purchase business.
Pretax earnings for the title business came to $18 million, compared with a loss of $4 million in 2Q11. Its real estate information segment had pretax earnings of $13 million, up from $10 million one year prior. Title revenue rose to $443 million, a net gain of $61 million compared to the same period last year.
Real estate information services revenue increased 80% to $41 million in 2Q12. CEO Matthew Morris said the mix of business in this segment has shifted from loan modification services to "more sustainable servicing support and real estate owned-related services."
Meanwhile, First American Financial Corp. had its best title margins since 2005 said CEO Dennis Gilmore, as it earned $73 million, more than double the $32 million in 2Q11 profits.
Orders in the second quarter increased by 36% year-over-year because of refis, Gilmore said. "Given first-half results and a strong order pipeline, we are on track to deliver on our goal of an 8% to 10% title margin for the full year 2012."
