FIRST AMERICAN FINANCIAL ACQUIRES TELE-TRACK, INC.
May 11, 1999, SANTA ANA, Calif.
Tele-Track is the primary issuer of credit information on individuals who otherwise would not be considered creditworthy. Since its inception in 1989, Tele-Track has amassed a unique, proprietary database of 19 million records detailing credit histories that include items such as charge-offs, skips, unreturned merchandise, repossessions, deficiency balances and bad checks. This data is furnished to a wide variety of users, including furniture and appliance retailers, payday loan/check advance stores, rent-to-own stores, subprime consumer and auto finance companies and cable television companies.
"The acquisition of Tele-Track unquestionably positions First American as the premier provider of information relating to subprime consumer behavior," stated Parker S. Kennedy, president of First American Financial. "This under-served segment is rapidly gaining access to vital credit resources largely due to the services provided by Tele-Track."
During 1998, First American Financial announced the formation of its Consumer Risk Management Group, which was established to expand the company's opportunities for revenue growth, and balance its traditional base of real estate-related products and services. This group now provides more than 600,000 informational reports each month to automotive dealers, subprime auto finance companies, landlords and employers, as well as directly to consumers.
Donald A. Robert, president of First American Consumer Risk Management Group, stated: "The acquisition of Tele-Track will dovetail nicely with two recent First American acquisitions: The Registry, which is the nation's largest resident screening company, providing landlords with credit and eviction notice reports on prospective tenants; and CIC, Inc., a national provider of pre-employment reports, supplies employers with credit and criminal record reports on prospective employees. The addition of Tele-Track should greatly enhance the information already provided by First American to its landlord and employer customers. Another benefit to First American is the exclusivity of Tele-Track's unique and highly predictive data, which is not available from any other source."
Tele-Track's information will also expand the menu of credit information available to mortgage originators. First American produces over 2 million credit reports each month and is the nation's largest provider of mortgage credit information. "The consumer risk management product line is a natural extension of our mortgage credit capabilities," added Robert.
Dana L. Webster, founder and president of Tele-Track, indicated his enthusiasm for the transaction, stating: "First American has a clear strategy for creating a broad-based offering of consumer risk management services. Tele-Track will become a clearing house for First American's consumer data operations, which gives an immense boost to our growth plans." Webster will continue as president of Tele-Track under First American's ownership.
The First American Financial Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information products and services. The corporation's subsidiaries include First American Title Insurance Company, a national and international provider of title information; First American Real Estate Information Services, Inc., which offers tax monitoring, mortgage credit reporting, property data services, flood certification, field inspection services, appraisal services, loss mitigation services, mortgage loan origination and servicing systems, and mortgage document preparation nationally; First American Home Buyers Protection Corporation, a home warranty company; and First American Capital Management, an investment advisory firm; and First American Trust Company and First Security Thrift Company in Southern California. The company also offers automotive and direct-to-consumer credit reporting, multifamily resident screening and pre-employment screening through its Consumer Risk Management division. First American Financial has nearly 20,000 employees in more than 400 branch offices in the United States and abroad. Information about the company's subsidiaries and an archive of its press releases can be found on the Internet at http://www.firstam.com.
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