First American Introduces Mortgage Industry’s First Complete Purchase Money Bundle of Services
– Also Unveils Bundle for Title Agents to Combine With Their Own Title Services –
November 19, 2003, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s leading diversified provider of business information and related products and services, today introduced the mortgage industry’s first consolidated bundle of products and services to complete home purchase transactions. First American is leveraging its broad menu of services and its market-leading technology to electronically produce and deliver its groundbreaking new Purchase Money Bundle and offer the nation’s first specially priced, integrated package of mortgage information and settlement services from a single source.
The basic Purchase Money Bundle is composed of all of the origination and settlement services required by mortgage lenders to originate mortgages in purchase transactions including: credit reporting, flood zone determination, property valuation, title insurance and closing services. A version of the Purchase Money Bundle will also be available to title agents wishing to offer a bundle of real estate information products to complement their own title and settlement services. By offering services as a fixed, single-price package, First American offers the industry a product with unparalleled value.
“First American has been working toward the culmination of this strategy for more than 15 years, and after more than 50 acquisitions, I am proud that we are now able to bundle our industry-leading products to provide a comprehensive solution for our customers,” said Parker S. Kennedy, president of The First American Corporation. “Housing and Urban Development Secretary Mel Martinez has been the catalyst in elevating the discussion of bundling to the forefront of the real estate industry and in establishing a market demand for a simplified closing process. First American is introducing its Purchase Money Bundle in response to this growing market demand and without the need for a change in HUD regulations.”
Historically, pricing for appraisal, title and settlement services has varied greatly across the nation. Today, First American provides a breakthrough by offering these services in a single, simple package, with greatly enhanced standardization of product and price. First American’s complete menu of industry services, combined with Web-based technology, gives the company the ability to produce its bundled product centrally and deliver it to customers at a fixed price in a highly flexible and customized format. First American was the first company to introduce a bundle for refinance transactions; and in October, the company pioneered the development of its California Affordable Homeownership Settlement Package, a discounted bundle of services to meet the needs of low-income markets.
Gary L. Kermott, president of First American Title Insurance Company stated: “Offering custom bundles without title services included is also an important step in our continued efforts to support First American’s current title agents and to attract new agents to our company. The real estate industry has devoted a great deal of attention the past year to the concept of a simplified closing package. We believe our Purchase Money Bundle will provide First American and its agents a strong competitive advantage.”
First American expects to complete the pilot phase of this program in early January and will be making more information about the Purchase Money Bundle, and other innovative bundling programs, available in the coming months.
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation’s leading diversified provider of business information, the company supplies businesses and consumers with information resources in connection with the major economic events of people’s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $4.70 billion in 2002, First American has nearly 25,000 employees in approximately 1,400 offices throughout the United States and abroad. The company has its headquarters in Santa Ana, Calif. Information about The First American Corporation’s subsidiaries and an archive of its press releases can be found on the Internet at www.firstam.com.