First American Creates Two New Business Line Solutions
—Step Toward “One-firm” Vision Brings Together Multiple Companies to Meet Client and Market Needs—
November 17, 2008, SANTA ANA, Calif.
The First American Corporation (NYSE:FAF), America’s largest provider of business information, announced today the creation of two new business lines: Valuations and Property Solutions, and Outsourcing and Technology Solutions. “The business lines are designed to deliver a full range of integrated services to our clients and to further improve operational efficiency,” said Barry M. Sando, president of the Information and Outsourcing Solutions segment, where both new business lines reside. “We see them as prototypes for how the new Information Solutions company will be structured when it eventually becomes a separate publicly traded company.”
Valuation and Property Solutions includes First American eAppraiseIT, one of the nation’s leading appraisal management companies; First American Residential Value View, a leader in broker price opinions (BPOs); and First American Field Services, one of the nation’s largest and most comprehensive providers of residential property inspections and preservation services. Joni Pierce, chief operating officer of First American Residential Value View, has been named leader of the business line.
“We are moving toward a single platform that will allow clients to automatically match the appropriate valuation product—full appraisal, desk-review, BPO or specialty automated valuation model (AVM)—to specific product risk, using cascading logic,” said Pierce. “From an operational perspective, we will be able to share technology and best practices to better select and manage the independent appraisers, Realtors® and field service providers who generate valuations and property information.”
Outsourcing and Technology Solutions includes First American’s National Default Outsourcing, National Claims Outsourcing, Loss Mitigation Services, Default Technologies, Loan Production Solutions, REO Servicing and Global Offshore Services. Scott Brinkley, executive vice president of Global Offshore Services, has been named leader of this new business line.
“By consolidating all of First American’s outsourcing solutions into one operating vertical, we are better positioned to provide seamless, end-to-end outsourcing solutions to our clients,” said Brinkley. “The establishment of this new business line allows to take full advantage of our experience, scale and resources to deliver high-impact business process outsourcing and technology solutions to the financial services and mortgage industries.”
“This past January, we announced plans to split First American into two separately listed public companies: the Information Solutions company and the Financial Services company,” said Frank McMahon, vice chairman of First American, who will become chief executive officer of the new Information Solutions company. “Although the timing of that plan has been delayed due to market turbulence, we are still aggressively working to integrate our product companies and transform our organization. As the creation of these new business lines demonstrates, we are committed to being a client-focused business partner, integrating business units, and leveraging our data, analytics and processing to enable our clients to improve performance and manage risk.”
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. 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 relating to the separation of First American into two separately listed public companies and the operational effects of the creation of the two business lines are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. 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.