taken from PRess Release on Fidelity National website:

“…The total purchase price for Commonwealth and Lawyers is approximately $282 million. Chicago Title Insurance Company (”Chicago Title”) and Fidelity National Title Insurance Company (”Fidelity National Title”) will pay a total of approximately $135 million in cash to LFG. Additionally, FNF will pay LFG a total consideration of approximately $147 million consisting of $47 million in cash, a $50 million subordinated note due in 2013, with interest at the 5-year treasury rate at closing plus 1 percent and approximately $50 million in FNF common stock valued at no less than $14.00 per share. The agreement also calls for Fidelity National Title’s cash purchase of United for statutory book value at closing. United’s statutory book value was approximately $16 million as of September 30, 2008….”

AS per the website press release, FNF is one of the nation’s largest title insurance companies. It’s title insurance underwriters (including Fidelity national and Chicago) issue approximately 27% of all title insurance policies in the US. 

What are the potential implications of this Stock Purchase Agreement? What if you are a tiitle agent representing Commonwealth or Lawyers?

Comments and discussion welcomed

Greetings to all,

Reading the one summary page of the Emergency Economic Stabalization Act of 2008″ (from ALTA’s website), the word that jumps out the most is Emergency. Certainly, the real estate and financial markets in the United States seem to be in a state of emergency- especially if you keep a close eye on the stock market during the day!  Some say recession, while others state that the recession was years prior, and we now may be heading into depression.

While the EESA summary seems to be a possible way to head in the right direction, it is certainly  unprecedented in our society to allow the government so much involvement with the finances of independent institutions.

What are your thoughts? Please post your comment here. Is this the best solution? The only solution? What, if any, are the potential pitfalls or benefits of allowing the government to step in?

As always, I look forward to hearing from y ou.

Robin

The recent news about AIG’s financial crisis and subsequent aid from the federal government has sparked quite a buzz in the insurance industry! I have received phone calls from clients, prospects, and colleagues discussing the implications of this past week’s events. The name “AIG” and the words “financial crisis” seem strange when placed in the same sentence; naturally any insured by one of the worlds’ largest and trusted coverage providers will feel a certain unease knowing their protector is experiencing financial difficulty.

It is important to make a distinction, however, between the parent company and it’s insurance businesses operating as separate units.

Consider this snippet of information I received from the IIABNJ watchdog email on Sept 17th:

“The complex corporate structure of AIG has resulted in confusion by some about the distinction between the parent company’s financial strength and the ability of its insurance businesses to meet their obligations to policyholders. The loan provides AIG with needed liquidity, averting a crisis that could have set off a cascade of repercussions across the financial markets. On the other hand, its insurance businesses are separate units or subsidiaries that are restricted from transferring assets to related entities without regulatory approval to facilitate their ability to pay claims.”

What then, is a title agent to do when faced with the difficult decision of using AIG to insure their business from professional liability claims? I encounter many in the title insurance industry who are either insured by AIG or one of its’ subsidiaries, and I frequently access the company for certain risks that fit their specific underwriting criteria.

It comes down to the level of comfort of the individual responsible for securing insurance. All we independent agents can do, as trusted advisors in the industry, is state the facts and let our clients know that insurance is available elsewhere if alternate options are desired.

Best to all,

Robin

Hi All,

I was recently sent a notice from PLTA in regards to the proposed RESPA rule. It is clear that many people are up in arms about this, with the thought that the rule is unnecessary, as well as financially and legally burdensome. I hear most about the closing script to be read, which,  if required, could double your time spent on closings, mae you more responsible for burrowwers, and increase your legal liability.

What do you think? Is there a better way to resolve this issue? What would the reasoning be for pro-RESPA, if any?

I welcome your posts!

Robin

Welcome all newcomers and usual suspects! This is the blog for all things pertaining to the title agent industry (as well as some personal quips!) I have been working to insure title agents throughout NJ and NY, and have also recently joined the PA Land Title to help out title agents in my neighboring state. I am located in central NJ, but travel and insure agents throughout the east coast, and have the capability to insure nationwide.

I know the industry is tough. I hear it everywhere I go, and agents are all looking for ways to reduce their expenses to get through this real estate crisis (any thoughts on how long this will last? I have heard from end of 2009 to 2010).  One way to reduce costs is having your errors and omissions policy analyzed by a professional liability specialist. (and fidelity bonds- I know it is required in PA!). Check out my testimonials! I have helped many agents reduce their costs.

More to come! Please post your comments here- suggestions on website changes, anything you’d like to see or information  you’d like to have easy access to? I welcome all feedback!

Robin Campbell

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