Profile: The First American Corporation (FAF)

The First American Corporation, through its subsidiaries, is engaged in the business of providing business information, and related products and services. The Company has five segments that fall within two primary business groups, financial services and information solutions. The financial services group includes its title insurance and services segment and its specialty insurance segment. The Company’s information and outsourcing solutions, data and analytic solutions and risk mitigation and business solutions segments consists its information solutions group. In June 2009, the Company acquired BasePoint Analytics, LLC, a provider of predictive analytic fraud and risk management solutions for the mortgage and global banking industries. In November 2009, the Company completed the buy-in of First Advantage Corporation.

The title insurance and services segment issues residential and commercial title insurance policies and provides escrow services, accommodates tax-deferred exchanges and provides investment advisory services, trust services, lending and deposit products and other related products and services. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The data and analytic solutions segment provides licenses and analyzes data relating to mortgage securities and loans and real property, offers risk management and collateral assessment analytics and provides database access tools and automated appraisal services.

The Financial Services Group

The title insurance and services segment's principal product is policies of title insurance on residential and commercial property. This segment also provides tax-deferred exchange of real estate, provides investment advisory services, trust services, lending and deposit products and other related products and services.

The First American Corporation, through First American Title Insurance Company and its affiliates, transacts the business of title insurance through a network of direct operations and agents. Through this network, the Company issues policies in all states (except Iowa) and the District of Columbia. In Iowa, it provides abstracts of title only. The Company also offers title services, either directly or through joint ventures, in Guam, Puerto Rico, the United States Virgin Islands, the Bahamas, Australia, Canada, China, Ireland, Latin America, Mexico, New Zealand, South Korea, the United Kingdom, Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic, Turkey, Spain and other territories and countries.

The Company’s home warranty business provides residential service contracts that cover many of the systems and appliances in residential homes against failures that occur as the result of normal usage during the coverage period. Most of these policies are issued on resale residences. Coverage is for one year and is renewable annually at the option of the contract holder and upon approval of the Company. Coverage and pricing typically vary by geographic region. Fees for the warranties may be paid at the closing of the home purchase or directly by the consumer and are recognized monthly over a 12-month period. Renewal premiums may be paid by a number of different options. In addition, the contract holder is responsible for a service fee for each trade call. First year warranties primarily are marketed through real estate brokers and agents.

The Company offers property and casualty insurance through its subsidiaries, First American Property and Casualty Insurance Company and First American Specialty Insurance Company. First American Property and Casualty Insurance Company primarily conducts its business utilizing the Company’s direct distribution channels, including cross-selling through existing closing-service activities. First American Specialty Insurance Company conducts its business utilizing a network of brokers.

The Information Technology Group

The information and outsourcing solutions segment provides a range of products and services, including tax monitoring, flood zone certification and monitoring, building and maintaining geospatial software and databases, default management services, loan administration and production services, business process outsourcing and asset valuation and management services. The Company’s tax monitoring service advises mortgage originators and servicers of the status of property tax payments due on real estate securing their loans. In general, providers of tax monitoring services, such as the Company’s tax service, indemnify mortgage lenders against losses resulting from a failure to monitor delinquent taxes. The Company’s outsourcing and technology solutions segment sells software and provides services which help mortgage servicing companies and financial institutions mitigate losses on mortgages that are in default, as well as manage foreclosures, maintain and sell real estate-owned (REO) properties and process foreclosure claims.

The Company’s appraisal services segment provides appraisal services to mortgage lenders, real estate agents, investors and other businesses requiring valuations of real property. These services generally consist of traditional appraisals, which require physical inspection and human analysis, and broker price opinion services, which value real property based on the opinions of real estate brokers and agents.

The Company’s data and analytic solutions segment provides licenses and analyzes data relating to mortgage securities and loans and real property, offers risk management and collateral assessment analytics, provides database access tools to various businesses, in particular to businesses operating in the real estate industry, and provides automated valuation models which use data and mathematical models and analytic tools to arrive at a property valuation. The Company’s data and analytic solutions segment’s primary customers are commercial banks, mortgage lenders and brokers, investment banks, fixed income investors, real estate agents, property and casualty insurance companies and title insurance companies.

First Advantage operates in six primary business groups: lender services, data services, dealer services, employer services, multifamily services, and investigative and litigation support services. First Advantage’s lender services segment offers consumer credit reporting solutions for mortgage and home equity needs. Its data services segment provides transportation credit reporting, motor vehicle record reporting, criminal records reselling, finance credit reporting, consumer credit reporting and lead generation services. Through its dealer services segment, First Advantage serves the automotive dealer marketplace by delivering consolidated consumer credit reports and automotive lead development services.

First Advantage’s employer services segment provides employment background, hiring management solutions, occupational health services, tax incentive services and payroll and human resource management. Its multifamily services segment provides resident screening services, property management software and renters’ insurance services. First Advantage’s investigative and litigation support services segment supports businesses and law firms nationwide with their computer forensics, electronic discovery, data recovery, due diligence reporting and corporate and litigation investigative needs.

The Company competes with Fidelity National Financial, Inc., Stewart Title Guaranty Company and Old Republic International Corporation.