Refi Boom Generates Increased Revenue For Title Industry

May 6, 2003

WASHINGTON-- May 6, 2003-- A recent study confirmed what members of The American Land Title Association (ALTA), already knew -- 2002 was a strong year for revenues due to the continued high level of refinancings and the strong new and resale housing markets.

According to ALTA Director of Research, Richard McCarthy, "This report proves what our members have been telling us, that in 2002, they were busier than they have been in years. No one could have predicted that consumers would refinance multiple times in six months or a year due to interest rates that continued to spiral downward to 40-year lows."

Gross revenue (total operating income) for the industry was up 30% over 2001 at $12.68 billion, and the loss ratio (losses as a percentage of total operating income) was 4.6% as compared with 4.8% for 2001. The net gain from operations was $480.1 million up from $237.6 in 2001. Net income after taxes was $557.9 million in 2002 compared with $460.4 million in 2001. However, net investment income was down 12.5% to $321 million from $366.9 million in 2001.

To see charts from this study, go to the ALTA News section of the ALTA Web site at www.alta.org -- Click Here. For more information on the study, contact McCarthy at rich_mccarthy@alta.org or 800/787-2582.