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Philip B. Branson, chairmanMartin R. Wool, president First American Home Buyers Protection Corporation |
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 irst American Home Buyers Protection Corporation set a new record in 1997 by writing more than $50 million in premiums. The group ended the year with 162,000 home warranties in force, up 30,000 from 1996. The group's business is the sale of warranties covering major operating systems and appliances in resale homes, and the renewal of these service contracts. Repairs and replacements on items under warranty are carried out by a network of qualified, licensed contractors.
In 1997, this group's business grew in all states in which it operates. Its growth was especially evident in Texas, where it realized a 49 percent increase in sales. In California, where the company is based, its business increased by 17 percent. A state-of-the-art call center was opened by the group in 1997, with additional customer service representatives trained to respond rapidly to customer service requests. This has already resulted in increased efficiency and customer satisfaction.
The group's plans for 1998 include marketing its product through the mortgage process. First American Home Buyers Protection Corporation's 1997 operating revenues increased 22 percent over 1996. The group realized a pretax profit of $9.7 million, up 19 percent from the previous year. Its equity rose by 13 percent to $47.6 million.
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The warranties will be sold to homeowners at the time the home loan is made. The costs will then be amortized over the warranty's one-year period through the homeowner's impound account. Continued national expansion is also planned for 1998, as the group begins offering its services in Utah early in the year.