Saxon Capital Selects First American for Qualified Mortgage Leads and Insured Valuation Services
—Unprecedented Solution Combines Best-of-Breed Customer Prospecting, Credit Screening and Valuation Technology to Increase Closure Rates—
July 29, 2003, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s leading diversified provider of business information and related products and services, and Saxon Capital, Inc., (NASDAQ: SAXN), a residential mortgage lending and servicing company, today announced the formation of a pilot program through which First American will provide end-to-end mortgage prospecting and pre-approval services to Saxon. Employing several First American business lines, this unique service is expected to help Saxon rapidly identify qualified mortgage borrowers and close loans with increased speed and efficiency.
Addressing Saxon’s need not only to identify mortgage prospects but also to prescreen borrower creditworthiness and target property values, First American’s solution draws upon the strengths of three distinct business lines: First American Real Estate Solutions (RES®); First American CREDCO; and eAppraiseIT, a First American/LandAmerica Financial Group joint-venture company majority owned and managed by First American.
“First American’s leadership position in the areas of mortgage prospecting, credit screening and insured valuation services uniquely qualifies us to meet the needs of mortgage lenders,” said Parker S. Kennedy, president of The First American Corporation. “We’re pleased to have this opportunity to demonstrate our combined strengths to Saxon Capital.”
Under the terms of the pilot program, First American RES will identify mortgage candidates for Saxon through its premier Web-based source for quality mortgage leads, LeadsToLoans™. The mortgage leads will then be routed to First American CREDCO, which will provide credit prescreening services through its advanced data and decisioning technology platform. The prequalified borrower names will then be submitted to Saxon, which—in certain loan situations—will utilize eAppraiseIT’s EagleCert® insured valuation solution. EagleCert combines First American automated valuation models (AVMs) and Freddie Mac’s Home Value ExplorerSM with hybrid and traditional valuation products, when necessary, to offer a complete solution that is much faster than traditional appraisals, while priced lower than uninsured, traditional valuation solutions.
“Saxon’s focus is on building a high quality portfolio of nonconforming mortgage loans and managing the credit risk throughout the life of the loan,” said Dennis Stowe, Saxon’s president and chief operating officer. “First American’s ability to combine the strengths of two unique systems with Saxon’s credit and collateral characteristics will allow us to identify loans that fit our portfolio guidelines, offering prospective customers a solution designed to benefit the borrower. Combining those characteristics with the EagleCert insured valuation solution will enhance the borrower’s experience by reducing loan processing time, improving pull-through and reducing the cost of providing credit to the nonconforming customer.”
Saxon plans to implement the program during the third quarter of 2003.
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. More information about the company and an archive of its press releases can be found at www.firstam.com.
Saxon Capital, Inc. is a residential mortgage lender and servicer that originates, purchases, securitizes and services nonconforming mortgages and home equity loans. Saxon is headquartered in Glen Allen, Va., and has additional primary facilities in Fort Worth, Tex., and Foothill Ranch, Calif. Saxon's production subsidiaries, Saxon Mortgage, Inc., and America's MoneyLine, Inc., originate and purchase loans through wholesale, correspondent and retail business channels. Saxon currently originates and purchases loans in 49 states through its network of approximately 4,000 brokers, 400 correspondents and 27 retail branches. As of June 30, 2003, Saxon's servicing subsidiary, Saxon Mortgage Services, Inc., serviced a mortgage loan portfolio of $8.3 billion. For more information, visit www.saxoncapitalinc.com.