First American agrees to acquire mortgage subservicer ServiceMac

By Pavithra R

Carolinas based First American Financial Corporation, a leading global provider of title insurance, settlement services and risk solutions for real estate transactions has announced the signing of an agreement to acquire ServiceMac, revolutionizing the mortgage servicing industry. 

Founded in 2017, ServiceMac is one of the nation’s leading independent sub servicers, offering investors, lenders, and other mortgage servicers personalized solutions that span the entire mortgage life cycle and enhance security, customer satisfaction, retention capabilities and profitability. The firm’s innovative, data-driven technology provides clients with quality results and immediate loan-level access to their accounts.

“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,” said Dennis J. Gilmore, chief executive officer at First American Financial Corporation.

The acquisition of ServiceMac’s mortgage subservicing business complements First American’s existing capabilities and is expected to enhance First American’s ability to provide lenders & servicers with end-to-end mortgage, post-closing services, settlement, and servicing-related products and solutions.

As a part of the deal, First American has acquired a minority interest in ServiceMac’s parent company. The closing of the acquisition is expected to occur by the end of 2021, subject to regulatory approvals and the satisfaction of customary closing conditions.

“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. 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,” said Caruso.

Established since 1889, First American provides financial services through its Title Insurance and Services segment and its Specialty Insurance segment. The firm serves homebuyers and sellers, real estate professionals, loan originators and servicers, commercial property professionals, homebuilders and others involved in residential and commercial property transactions with products and services specific to their needs.