TRID to Prompt Title Industry Consolidation: First American
First American Financial Corp.'s title business is expecting a slow gain in market share driven by the upcoming Truth in Lending Act and Real Estate Settlement Procedures Act integrated disclosures reforms, in part due to consolidation in the title industry.
Here are some additional highlights from chief financial officer Mark Seaton's presentation at Tuesday's Keefe, Bruyette & Woods Mortgage Finance Conference in New York:
- First American's title business market share is currently 28%, and it has been trending upward.
- The company's new data and analytics business — capabilities acquired through its $155 million purchase of Interthinx last year — is working toward the goal of helping lenders build "defect-free" mortgages.
- Recent technology efforts also include customer-facing automation for business partners like title agents, a switch from past efforts more focused on back-office efficiencies.
- The company is optimistic that increases in purchase mortgages will provide the title business with higher margins and boost its revenues.
- A refinancing rate reduction affecting the title business in New York State won't have an economic impact on the company.