Solving the Post-Close Challenge with Intelligent Automation

Join our upcoming webinar as SoftWorks AI CEO and Avanze CEO explore the advances in tech that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

The 100-years-war over real estate commissions

HousingWire plunges down the rabbit hole of residential real estate commissions, uncovering the past, present and future of this wholly unique part of the economy.

How borrower education can make housing more attainable

The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs.

Closing

Docutech purchase drives First American information revenue up 38%

Overall revenue increases 15% annually

Earlier this year, First American made its latest move toward a fully digital mortgage with its purchase of mortgage tech firm Docutech. Now, that purchase is driving up the company’s revenues.

The company rebranded to First American Docutech in September after the purchase for $350 million in February this year.

In the third quarter of 2020, First American’s information and other revenues were $282.7 million, up 38% compared with the same quarter last year. The company said this increase was primarily due to the growth in mortgage originations that led to higher demand for the company’s title information products, the acquisition of Docutech and revenues from services provided to support a temporary pandemic-related government program in Canada.

Docutech, a document, eSign, eClosing and compliance technology provider, is one of the top tech companies in the housing industry. The company’s digital document technology is used by Black KnightEllie MaeFiservCoreLogicBlendTavantFloifyMaxwellRoostify and more than 175 lenders.

“The acquisition of Docutech reflects our steadfast commitment to invest in and grow our core business,” First American CEO Dennis Gilmore said earlier this year. “Moreover, it demonstrates our dedication to improving the home-buying experience for consumers and driving the digital transformation of the real estate settlement process.”

Overall, the company’s total revenue was $1.9 billion in the third quarter, up 15% from the previous year. Closed title orders were up 30%, driven by an 85% increase in refinance orders. However, this shift to refinances also caused the average revenue per order to decrease 13% annually.

Net income in the third quarter increased to $182.3 million, or $1.62 per diluted share, down slightly from $187.2 million, or $1.65 per diluted share in the third quarter of 2019.

“Our third-quarter financial results were strong, achieving a record pretax title margin of 19%,” Gilmore said. “Our purchase and refinance businesses are performing well, benefiting from strong order trends and our continued focus on cost efficiency. Given low mortgage rates and robust demand for housing, we expect refinance and purchase activity to remain at elevated levels for the remainder of the year.”

Leave a comment

Most Popular Articles

Biden’s $15K first-time homebuyer tax credit now a bill

President Joe Biden called for a $15,000 tax credit for first-time homebuyers, and Congress has answered his call with a bill.

Apr 26, 2021 By

Latest Articles

What a dismal jobs report means for the housing market

April’s U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they’re not worried about the housing or mortgage market. HW+ Premium Content

May 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please