Tuesday, September 4, 2007

FATCO getting thinner

First American Corp., known by many in the industry as FATCO, is cutting another 1,300 jobs, bringing the total to 1,900 since the second quarter. FATCO also appears to be taking a serious look at moving more and more titled-related work offshore.

Title companies should remember the following: my clients send work to title companies not because of the name. Nor is price even the prime consideration, although it plays a secondary role. My clients pick title companies because of service and the ability to underwrite transactions creatively. An underwriter who can think outside the box is worth a fortune, and in my opinion, worth paying a little more premium because if a deal does encounter a title problem, the legal fees alone will eat up the savings by using a company that will not think outside the box.

(Note that I say "my clients" pick the companies. These days I rarely get to pick the title insurer in a deal because the sales people have gotten smart and have gone directly to the clients to push their services.)