First American Acquires Baker, Brinkley & Pierce
—Premier Default Claims Management Provider Now Part of First American’s Mortgage Information Services Group—
February 18, 2004, SANTA ANA, Calif.
The First American Corporation (NYSE: FAF), the nation’s leading data provider, today announced that it has acquired privately held Baker, Brinkley & Pierce (BBP), a San Antonio-based default claims management company serving several of the mortgage industry’s largest lenders and servicers. The acquisition, completed Jan. 6, 2004, establishes First American National Claims Outsourcing, a new company that will augment First American’s ability to provide a complete menu of default management solutions to leading financial services companies.
“Mortgage lenders and servicers are increasingly moving toward outsourcing the important yet labor-intensive process of filing mortgage default claims,” said James C. Frappier, president of First American Default Management Solutions. “BBP is the only company in the industry that has proven itself capable of handling large volumes of claims efficiently, cost-effectively and with the turn time that our customers require. Adding them to our team enhances our suite of default products and strengthens First American’s position as the premier provider of default outsource-solutions for the mortgage servicing industry.”
Following a foreclosure, a mortgage servicer must file a claim with its mortgage insurer to be reimbursed for the defaulted loan as well as any uncollected interest and foreclosure costs. Although a vital function, the expense and complexity of the process often make outsourcing it a necessity. Baker, Brinkley & Pierce, established in 1993, is the nation’s largest processor of mortgage insurance claims, processing in excess of 6,000 claims per month. The company is headed by founders John Baker and Scott Brinkley, both of whom will continue to oversee operations as First American employees.
“Combining BBP’s proprietary document tracking database with First American’s claim filing technology will create a default claims management product of unparalleled strength,” said Scott Brinkley, the new president of First American National Claims Outsourcing. “We have been one of the biggest customers of First American’s Claims Management technology (CMAX) for years, and now as part of the First American family, we are able to add to the service selection lenders rely on to meet their specialized default needs.”
Michael Barrett, vice chairman of First American Real Estate Information Services, stated: “We have been working to provide a complete solution for field services, default outsourcing and claims management for nearly 20 years. The addition of BBP to First American’s field service capability and default management technology makes this dream a reality.”
The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation's largest data provider, 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 $6.2 billion in 2003, First American has nearly 30,000 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.
Certain statements made in this press release, including those related to the default claims management product, are forward looking. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; access to public records and other data; general volatility in the capital markets; changes in applicable government regulations; consolidation among the company’s significant customers and competitors; the company’s continued ability to identify businesses to be acquired; changes in the company’s ability to integrate businesses which it acquires; and other factors described in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2002, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.