Title Companies

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Ranked by total mortgages insured during 1999 in L.A. County

EXECUTIVE SUMMARY

Despite a rise in value of homes in Los Angeles County in 1999, most of the companies on this year’s list saw a modest drop in the number and dollar amount of mortgages insured. The total value of refinance and sales mortgages insured in L.A. County in 1999 was $75.6 billion, a 3.1 percent drop from last year’s total of $78 billion, according to First American Real Estate Solutions.

Rising interest rates were to blame for the drop. Though people were still buying new homes, the number of refinanced mortgages fell steeply last year because of the rising rates. In addition, industry insiders and investors alike believe the economic boom in the real estate market is just about over.

Title companies issue insurance to protect those involved in real estate transactions. Insurance for the lender on the refinance of a property insures that in the event of a foreclosure, the lender is protected and will be able to take hold of the property free and clear. A homebuyer receives a title insurance policy to guarantee any fees or liens that may exist against the property up for sale.

THE PACESETTER

First American Title Co.

Once again, First American Title Co. of Los Angeles tops the list of L.A.’s biggest title companies, a spot it’s held for more than a decade. The company reached a peak in 1998, with an all-time record of $11 billion in the value of mortgages insured. While still number one on the list, business dropped substantially in 1999, with total mortgage value falling to $9.8 million and the number of mortgages insured dropping 22.8 percent from 1998’s total to 39,164.

Like others on the list, First American felt the pinch caused by rising interest rates. As more title insurers enter Los Angeles, companies such as First American are also experiencing a drop in market share. In 1998, First American had a market share of 13.45 percent, which fell to 12.97 percent in 1999.

First American was founded in 1964 by Matthew H. Suddleson under the name Los Angeles Land Title Co. The company changed its name to First American Title Co. on July 4, 1976, in accordance with the country’s bicentennial celebration. In 1999, the local branch got a new chief when Dennie Rowland was named president of First American Title L.A. and regional vice president of First American Title Insurance Co.

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