Fitch Releases Report on Title Insurance Industry
March 16, 2010
Fitch Ratings has published a report that reviews the 2009 GAAP results for U.S. title insurance industry.
"Forecasts from sources such as the Mortgage Bankers Association of America and Freddie Mac are expecting a sizeable decline in mortgage originations in 2010 that could cause title industry revenue to decline by as much as 10 to 15 percent," said Douglas Pawlowski, Title Sector Head and Senior Director for Fitch. "A declining top line would pressure profit margins in 2010 and challenge companies to cut expenses further after several years of expense reduction."
Fitch maintained its negative outlook on ratings in the title insurance sector given the prospects for a contraction in revenue and the weakened state of balance sheets following the prolonged downturn. Fitch is unlikely to change its rating outlook to stable for the title insurance industry until there is evidence of a return to sustainable profitability and organic surplus growth for the broader title insurance market.
The full report 'Title Insurance Industry Financial Results' is now available on Fitch Ratings web site at www.fitchratings.com under Sectors > Insurance > Topical Research & Special Reports.