FIRST AMERICAN’S NEW FACT PRODUCT COMBINES TITLE, FLOOD AND VALUATION SERVICES
Online Delivery Allows for Instant Closings While Reducing Production Costs
September 10, 2001, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s leading, diversified provider of business information and related products and services, today announced that its subsidiary, First American Equity Loan Services, Inc. (ELS), has introduced an automated solution to provide a package of First American’s core real estate-related products that can be ordered online through a single point of contact and delivered instantly to home equity lenders.
The new product, known as FACT, combines detailed property information including title reports, flood zone determinations and automated valuations with First American’s new FACT Master Loan Policy of Title Insurance. This combination contains the collateral verification pieces necessary for home equity lenders to close loans quickly, while providing them with title insurance coverage up to a maximum loan amount of $250,000. This additional insurance coverage can be provided faster and at a cost lower than the title reports currently purchased by most home equity lenders.
“Previously, home equity lenders were required to wait for a title report or standard appraisal before closing a loan,” said Michael B. Hopkins, president of First American ELS. “With FACT, lenders can close loans immediately knowing they’ll have the information and title insurance protection they need delivered online, at a very compelling price.”
FACT is electronically delivered 24 hours a day, seven days a week, through First American’s Web site at www.ELSonline.net. It can also be tailored to meet lenders’ transaction processing needs through a direct connection with their mortgage origination systems. The automated system draws from First American’s broad data sources, as well as other industry data providers, to instantly deliver the most comprehensive geographic coverage available to home equity lenders. When online information is not instantly available, First American ELS can backup the FACT product by performing traditional title, flood and valuation services and deliver the results electronically via the Web. If traditional title services are required, lenders are guaranteed insurance coverage by First American upon funding within 72 hours of placing the order.
The FACT Master Loan Policy of Title Insurance, which is issued and underwritten by First American Title Insurance Company, is currently approved in 29 states, with approval being sought in additional states. The new FACT title insurance coverage protects against losses resulting from falsified ownership records, errors in legal descriptions, undisclosed monetary liens, fraud and forgery. The FACT Master Loan Policy also incorporates, at no additional cost, important coverage for variable rate and revolving credit loans. This coverage was previously only available by supplementary endorsements.
“First American is committed to meeting our customers’ demand to close more loans, more quickly, more cost effectively and with added protection,” stated Hopkins. “With FACT, our customers receive comprehensive information bundled with the assurance of our industry-leading coverage.”
First American Equity Loan Services, Inc., headquartered in Cleveland, Ohio, operates 15 direct branch offices and, through First American, provides creative title, flood and valuation solutions to home equity lenders nationwide. For additional information about the new FACT product, visit www.ELSonline.net.
The First American Corporation, based in Santa Ana, Calif., is the nation’s leading, diversified provider of business information and related products and services. The corporation’s three primary business segments include: title information and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides automotive, subprime and direct-to-consumer credit reporting; direct-to-consumer public records reporting; resident screening; pre-employment screening; automobile title administration; property and automotive insurance tracking services; property and casualty insurance; home warranties; 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 www.firstam.com.