First American to Acquire Mortgage Subservicing Company
October 27, 2020
First American Financial Corp. announced plans to acquire the mortgage subservicing company ServiceMac LLC.
As a part of the transaction, First American has acquired a minority interest in ServiceMac’s parent company. That interest will convert into equity of ServiceMac at the closing of the acquisition, which is expected to occur by the end of 2021, subject to regulatory approvals and the satisfaction of customary closing conditions.
Founded in 2017, ServiceMac is an independent subservicers, offering lenders, investors and other mortgage servicers solutions that span the mortgage life cycle and enhance security, customer satisfaction, retention capabilities and profitability.
“The acquisition of ServiceMac reflects our steadfast commitment to support the mortgage industry and further expand our product innovation efforts,” said Dennis J. Gilmore, chief executive officer at First American Financial. “We’re excited to soon welcome to First American the people of ServiceMac, a rapidly growing company recognized for its technology and business leadership.”
ServiceMac’s mortgage subservicing business complements First American’s existing capabilities and will enhance First American’s ability to provide lenders and servicers with end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. ServiceMac will have enhanced access to First American’s property and homeownership data and mortgage solutions products, further advancing the company’s ability to add value to its existing services and develop new products and services.
ServiceMac’s management team, including President and CEO Bob Caruso, will continue to lead the company’s operations.
Contact ALTA at 202-296-3671 or communications@alta.org.