First American and ServiceMac Announce Agreement for First American’s Acquisition of ServiceMac
Pending acquisition will position the companies to support the entire mortgage life cycle, while enhancing product innovation efforts
October 26, 2020, Santa Ana, Calif.
First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, and ServiceMac, LLC, an innovative mortgage subservicing company, announced today the signing of an agreement for First American’s acquisition of ServiceMac. As a part of the transaction, First American has acquired a minority interest in ServiceMac’s parent company. That interest will convert into equity of ServiceMac at the closing of the acquisition, which is expected to occur by the end of 2021, subject to regulatory approvals and the satisfaction of customary closing conditions.
Founded in 2017, ServiceMac has quickly become one of the nation’s leading independent subservicers, offering lenders, investors and other mortgage servicers personalized solutions that span the mortgage life cycle and enhance security, customer satisfaction, retention capabilities and profitability. ServiceMac's innovative, data-driven technology provides clients with quality results and immediate loan-level access to their accounts.
“The acquisition of ServiceMac reflects our steadfast commitment to support the mortgage industry and further expand our product innovation efforts,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation. “We’re excited to soon welcome to First American the people of ServiceMac, a rapidly growing company recognized for its technology and business leadership.”
ServiceMac’s mortgage subservicing business complements First American’s existing capabilities and will enhance First American’s ability to provide lenders and servicers with end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. ServiceMac will have enhanced access to First American’s industry-leading property and homeownership data and mortgage solutions products, further advancing the company’s ability to add value to its existing services and develop new products and services.
ServiceMac’s management team, including President and CEO Bob Caruso, will continue to lead the company’s operations.
“Joining the First American family accelerates our ability to develop new products and services that benefit our lender customers and their clients, while strengthening our position as a counterparty in the mortgage finance ecosystem,” said Caruso. “Our employees will also benefit by being part of a company named to the Fortune 100 Best Companies to Work For® list five years in a row.”
About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $6.2 billion in 2019, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2020, First American was named to the Fortune 100 Best Companies to Work For® list for the fifth consecutive year. More information about the company can be found at www.firstam.com.
ServiceMac is focused on providing superior technology, products and services for the mortgage industry backed by highly personalized service and support. The innovative mortgage subservicing company offers lenders, investors and other mortgage servicers personalized solutions that span the mortgage continuum and enhance security, customer satisfaction and profitability. More information can be found at www.servicemacusa.com.
Certain statements made herein constitute 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. These forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words “believe,” “anticipate,” “expect,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could.”
These forward-looking statements include, without limitation, statements regarding the completion of the transaction and the timing thereof as well as the effects thereof. These forward-looking statements are based on current expectations and assumptions that may prove to be incorrect. 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, without limitation, the failure to obtain necessary governmental or other approvals in a timely fashion, or at all; the failure of certain closing conditions to be satisfied; challenges to the proposed transaction or issues related thereto; or regulatory-, technology- or business-related challenges.
These forward-looking statements speak only as of the date they are made. First American does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
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