The First American Corporation Acquires Baker, Brinkley& Pierce
|February 19, 2004|
SANTA ANA, Calif., The First American Corporation (NYSE: FAF) has acquired privately held Baker, Brinkley& Pierce (BBP), a San Antonio-based default claims management company serving several of the mortgage industry’s largest lenders and servicers. The acquisition, completed Jan. 6, 2004, establishes First American National Claims Outsourcing, a new company that will augment First American’s ability to provide a complete menu of default management solutions to leading financial services companies.
“Mortgage lenders and servicers are increasingly moving toward outsourcing the important yet labor-intensive process of filing mortgage default claims,” said James C. Frappier, president of First American Default Management Solutions. “BBP is the only company in the industry that has proven itself capable of handling large volumes of claims efficiently, cost-effectively and with the turn time that our customers require. Adding them to our team enhances our suite of default products and strengthens First American’s position as the premier provider of default outsource-solutions for the mortgage servicing industry.”
Following a foreclosure, a mortgage servicer must file a claim with its mortgage insurer to be reimbursed for the defaulted loan as well as any uncollected interest and foreclosure costs. Although a vital function, the expense and complexity of the process often make outsourcing it a necessity. Baker, Brinkley& Pierce, established in 1993, is the nation’s largest processor of mortgage insurance claims, processing in excess of 6,000 claims per month. The company is headed by founders John Baker and Scott Brinkley, both of whom will continue to oversee operations as First American employees.
“Combining BBP’s proprietary document tracking database with First American’s claim filing technology will create a default claims management product of unparalleled strength,” said Scott Brinkley, the new president of First American National Claims Outsourcing. “We have been one of the biggest customers of First American’s Claims Management technology (CMAX) for years, and now as part of the First American family, we are able to add to the service selection lenders rely on to meet their specialized default needs.”
Michael Barrett, vice chairman of First American Real Estate Information Services, stated: “We have been working to provide a complete solution for field services, default outsourcing and claims management for nearly 20 years. The addition of BBP to First American’s field service capability and default management technology makes this dream a reality.”
Source:The First American Corporation