Over the last few months, private mortgage insurer Radian Group has restructured its mortgage and real estate services business, which is conducted through its principal subsidiary Clayton Holdings, and Clayton’s subsidiaries: Green River Capital, Red Bell Real Estate, and ValuAmerica.
The changes, which included jettisoning Jeff Tennyson as president of both Radian’s services business and Clayton, were in response to Clayton’s “recent underperformance below expectations.”
Now, Radian is making another change in its services business by acquiring Entitle Direct Group, a title insurance and settlement services company that specializes in selling title insurance directly to consumers.
Entitle Direct claims that it can save consumers as much as 35% on title insurance by buying direct from the title insurer itself.
The company is currently licensed in 39 states and the District of Columbia.
According to Radian, the acquisition will “complement the geographic reach” of ValuAmerica, Radian’s existing title agency.
In a release, the company said that the acquisition is “consistent with Radian’s growth and diversification strategy, as well as its focus on the core product offerings of its mortgage and real estate services business.”
According to the company, Entitle Direct will continue to operate under its current brand and “provide the same level of quality products and services to its customers” through its current offices, which are located in Pittsburgh, Pennsylvania; Austin, Texas; Corona, California; and Independence, Ohio.
Eric Ray, Radian’s senior executive vice president of technology and transaction services, will be responsible for the strategic direction and leadership for the company’s title and settlement services businesses, the company said in a release.
“We are delighted to welcome Entitle to the Radian family of companies, expanding our capabilities and providing our customers across the country with the title insurance and settlement services they want and need,” Radian CEO Rick Thornberry said. “This is another example of the progress we are making to reposition our services segment for sustained profitability, by focusing on and investing in the products and services that are core to that business.”
Financial terms of the deal were not disclosed.