Santa Ana California-based First American Financial Corporation, global provider of title insurance, settlement services and risk solutions for real estate transactions, and mortgage subservicing company ServiceMac, LLC, announced today the signing of an agreement for First American’s acquisition of ServiceMac. As a part of the transaction, First American has acquired a minority interest in ServiceMac’s parent company, the companies reported in a press release. That interest will convert into equity of ServiceMac at the closing of the acquisition, which is expected to occur by the end of 2021, subject to regulatory approvals and the satisfaction of customary closing conditions.
Founded in 2017, ServiceMac offers "lenders, investors and other mortgage servicers personalized solutions that span the mortgage life cycle and enhance security, customer satisfaction, retention capabilities and profitability," ServiceMac reports, adding that its "innovative, data-driven technology provides clients with quality results and immediate loan-level access to their accounts."
According to Dennis J. Gilmore, chief executive officer at First American Financial Corporation, “The acquisition of ServiceMac reflects our steadfast commitment to support the mortgage industry and further expand our product innovation efforts,” “We’re excited to soon welcome to First American the people of ServiceMac, a rapidly growing company recognized for its technology and business leadership.”
ServiceMac’s mortgage subservicing business complements 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, according to the announcement. ServiceMac will have enhanced access to First American’s industry-leading property and homeownership data and mortgage solutions products, further advancing the company’s ability to add value to its existing services and develop new products and services.
ServiceMac’s management team, including President and CEO Bob Caruso, will continue to lead the company’s operations.
“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 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.”