First Advantage Corp. has acquired Fiserv Inc.’s mortgage credit-reporting business unit, CredStar, for an undisclosed sum, the companies announced Wednesday.

Based in Los Angeles, CredStar provides credit reports over a Web-based platform, WebStar, that can be used in conjunction with most major loan originating systems.

St. Petersburg, Fla.-based First Advantage is a publicly traded, majority-owned subsidiary of First American Corp. The company’s lender services division obtains credit reports from at least two of the three large credit bureaus, merging, summarizing and delivering them in a standardized format to mortgage loan originators and secondary mortgage purchasers.

Other divisions within the company collect data for uses that include employee and tenant screening. Lender services accounted for 23 percent of revenue in 2006, second only to employee services, according to First Advantage’s last annual report.

In the report, First Advantage warned investors that any of the three major credit bureaus it buys reports from could raise their prices or opt to sell credit reports to end users at a lower price.

Although parent company First American Corp. and its affiliates have agreed to serve as “the exclusive resellers of credit reports and related services” compiled by First Advantage, there “is no guarantee that First American will continue to provide these services” when the agreement expires, investors were told.

First Advantage has said its strategy is to grow through acquisitions, completing 11 in 2006. The company’s lone acquisition in 2007 was an employment screening company based in the United Kingdom, R E Austin Ltd., for $4.5 million.

The company said in October that the sale of more than half of its stake in DealerTrack Holdings Inc. for $97.7 million would allow it to “pursue strategic growth opportunities” in its core business.

First Advantage’s subsidiaries include First American CREDCO, CMSI Credit Services Inc., CreditReportsPlus LLC, and Credit Management Solutions Inc.

CREDCO claims it was the first company to provide merged credit data to mortgage lenders, and that it’s the “preferred provider” of reports to Fannie Mae and Freddie Mac.

***

Send tips or a Letter to the Editor to matt@inman.com, or call (510) 658-9252, ext. 150.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription