First American Financial Corp. announced Monday an agreement to acquire subservicer ServiceMac, which it anticipates closing at the end of 2021.
First American Financial, which provides title insurance, settlement services and risk solutions for real estate transactions, has acquired a minority interest in ServiceMac’s parent company and that interest will convert into equity of ServiceMac at the acquisition’s closing, pending regulatory approvals.
ServiceMac was founded in 2017 as an independent subservicer, offering lenders, investors and other mortgage servicers personalized solutions that span the mortgage life cycle, enhancing security, customer satisfaction, retention capabilities and profitability, the company said.
“The acquisition of ServiceMac reflects our steadfast commitment to support the mortgage industry and further expand our product innovation efforts,” said Dennis Gilmore, chief executive officer at First American Financial Corp. “We’re excited to soon welcome to First American the people of ServiceMac, a rapidly growing company recognized for its technology and business leadership.”
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ServiceMac’s mortgage subservicing business will complement 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, the companies said. Meanwhile, ServiceMac will have enhanced access to First American’s property and homeownership data and mortgage solutions products.
“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 ServiceMac President and CEO Bob 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.”
ServiceMac’s management team, including Caruso, will continue to lead the company’s operations.