Title insurance and settlement services provider First American Financial Corp. (FAF) posted a second-quarter profit of $32.3 million, or 30 cents per share, on revenue of $927.3 million. Income for the three months ended June 30 fell about 4% from $33.8 million, or 32 cents per share, a year earlier, when revenue was $969.9 million. Santa Ana, Calif.-based First American executed an expense reduction program in the quarter that is expected to yield $40 million in annual savings. The firm cut costs after studying current conditions in the mortgage and real estate markets. In its title insurance and services division, revenue fell 5% from last year to $857.3 million on a decline in direct and agent title premiums, as well as lower investment gains. Revenue from direct premiums and escrow fees fell 8% from last year as the company experienced an 18% drop in direct title orders. The average revenue per title order fell 12% to $1,548 in the second quarter. “We will continue to focus on operational efficiency and on maintaining a conservative balance sheet while we pursue opportunities for organic growth and strategic investment in our core business,” First American CEO Dennis Gilmore said. Write to Kerri Panchuk.
First American Financial 2Q profit, revenue down 4%
Most Popular Articles
Latest Articles
11 real estate events & conferences to help you thrive in 2024
Forge new connections at these in-person events and conferences that can help take your career to the next level.
-
In quest to grow reverse business, US Mortgage Corporation hires Krajewski
-
NAR wants VA to change rules that prohibit veteran buyers from paying broker commissions
-
Renters gain financial edge over homebuyers in key U.S. markets: Realtor.com
-
Reverse-centric Ibis Software appoints Sivori to board of directors
-
Clear Capital extends its partnership with Cherre