Industry News

First Am digs deeper in real estate default services

Buys Burrow Closing Management Corp.'s REO segment

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The First American Corp. has beefed up its real estate default operations with the purchase of the Real Estate Owned (REO) segment of Burrow Closing Management Corp., a title ordering, clearing and settlement provider. The acquisition comes one week after the company bought mortgage default services provider SNK Holdings to create First American National Default Outsourcing, a growing component of First American's Mortgage Information Services group. Terms of the BCMC transaction were not disclosed. All other, non-REO segments of BCMC will continue to operate under the BCMC name as part of Cendant Settlement Services Group, an indirect subsidiary of Cendant Corp. REO properties are real estate acquired through foreclosure and held in inventory. Large lenders usually outsource the handling of foreclosure settlement, including title clearance and placement of title orders, to service providers such as BCMC. BCMC currently provides these services to two of the top ten mortgage lend...