First American Introduces Industry's First Combined Flat-Fee REO Service Offering
––New Program Creates Fixed-cost Model for Both Asset Management—
March 3, 2010, SANTA ANA, Calif.
First American Outsourcing and Technology Solutions, a member of The First American Corporation (NYSE:FAF) family of companies and a leader in business outsourcing solutions, today announced that it is offering the industry’s first combined service package that provides a fixed cost for asset management and disposition as well as property preservation on real estate owned (REO) property.
Under the new pricing structure, First American will offer a flat fee for managing and selling REO assets as well as traditional field service functions needed to prepare and maintain the properties. Depending on the mix and price of assets in the portfolio, the fixed price on the referral fee enables servicers to reduce their field service expenses even further.
“Our new program gives default managers a more accurate way to budget, plan and strategically allocate their resources,” said Kevin Wall, vice president of operations at First American Outsourcing and Technology Solutions. “For a typical mix of properties in multiple markets, this new pricing structure will enable servicers to greatly reduce their overall REO expenses and improve their operational capacity.”
Under the new program, First American will provide an array of traditional field services such as preparation and ongoing maintenance, along with value-added offerings such as securing the property within 24 hours of referral and vacant property registration with the local municipality. These services may be performed for a period of up to six months, depending on the client’s needs.
“The time between foreclosure and remarketing is critical,” said Mark Velazquez, senior director of operations for First American Outsourcing and Technology Solutions. “Many newly foreclosed properties are vandalized or damaged while waiting for field services, which results in additional costs to the investor. By securing the property within 24 hours and immediately initiating property preservation, we minimize those additional expenses. In addition to delivering all of the standard repair and maintenance activities, we also serve as the main point of contact for a range of property management services. This enables our clients to reduce vendor management workloads and property preservation costs.”
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $6.0 billion in 2009, 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.