First American Financial Corp. ($15.46 0%) is developing an asset management company to oversee its REO services.

The new business is called Residential Management Services, according to a HousingWire source.

First American provides title insurance and settlement services for residential and commercial real estate nationwide and in Canada.

The Santa Ana, Calif.-based firm spun off from analytics firm CoreLogic ($17.04 0%) in June of last year. That same month, both First American and CoreLogic started trading on the New York Stock Exchange separately.

First American reported a first quarter net loss of $15.3 million Thursday, due to a $45.3 million contribution to strengthen reserves covering a guaranteed valuation product sold in Canada.

Write to Christine Ricciardi.

Follow her on Twitter @HWnewbieCR.