First American Introduces Product For Commercial Loan and Finance Markets
May 30, 2000, SANTA ANA, Calif.
First American is uniquely positioned in the industry to offer this new type of insurance. Due to differences in state laws, it requires both a title insurance company and a property and casualty insurer to offer this product nationwide. First American's family of companies has both.
The new UCC Insurance Division will leverage First American's advanced e-commerce and automated database systems to electronically search, examine, route and deliver data that can automatically be converted into documents ready for filing or delivery back to the lender. Using UCCFast™, First American's fully automated Web-based UCC policy production system, lenders will be able to initiate orders, access policy information and track orders in a secure, online environment.
"With significant and complex revisions to Article 9 of the UCC scheduled to be effected in many states July 1, 2001, the EAGLE 9™ UCC Insurance Policy is a proactive solution to ensure that current loans are unaffected and the lender's UCC filings remain in force once the revisions take effect," said Clifford Morgan, senior vice president of underwriting and new product development for First American. "Having an insurance policy that provides UCC coverage is a great way for lenders and their legal representatives to manage uncertainty, minimize risk and embrace the pending change."
"This innovative product will be the new benchmark in the commercial lending industry," said Theodore H. Sprink, vice president and director of First American's UCC Insurance Division. "Being the only company to offer such an important new product allows us to establish significant inroads with strategic partners and technology initiatives that help reinforce First American's position as an industry leader."
With more than 11,000 commercial banks and thrifts issuing more than $1 trillion in commercial and industrial loans in the United States last year, First American expects this new business to have strong growth potential. The UCC Division, which will add a new revenue stream to First American, operates independent of real estate cycles, while generating significant opportunities to cross market multiple First American products to an important new customer base. The EAGLE 9™ UCC Insurance Policy will also give First American's sales team an important new tool while providing solutions for mixed-collateral transactions that include real estate and other corporate assets.
The First American Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides home warranties; automotive, subprime and direct-to-consumer credit reporting; property and casualty insurance; property and automotive insurance tracking services; resident screening; pre-employment screening; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at at www.firstam.com.