First American subsidiary acquires Wisconsin title businesses

California-based subsidiary of First American Financial Corp. announced its plans to make inroads in the Badger State with the acquisition of title-related businesses.

Mother Lode Holding Co., a provider of title insurance, underwriting and escrow services for residential and commercial real estate, will purchase Wisconsin Title Service Co. Also included in the deal is the company's sister business, Wisconsin Title Closing Service, as well as plants in four counties. 

Terms of the deal were not disclosed, but Mother Lode touted the opportunity to grow in key markets within the state while making new services available to Wisconsin Title Service clients. 

"Their commitment to customer service and innovation mirrors our own," noted Mother Lode chief operating officer Lisa Steele in a press release.

Located in Roseville, California, Mother Lode was formed in 1986 and is also parent to Placer Title, among other businesses. Prior to its latest acquisition, Mother Lode had offices in 12 states, located primarily in the Western U.S.

Wisconsin Title, with locations in Waukesha and Racine in addition to its four plants, has served the state's real estate businesses for 75 years. The company will operate as a fully owned subsidiary of Mother Lode and continue to be led by President Carrie Hoyer and Vice President Mark Ciborowski. 

"Joining Mother Lode Holding Co. will provide new opportunities for our staff, as we continue to provide our customers with the same outstanding service they expect from us, with the added value and capabilities of an industry leader," Hoyer said. 

First American Financial owns a lengthy list of subsidiary units, heavily concentrated on title insurance and closing. But the company also offers a range of businesses from data and technology solutions to mortgage subservicing and home warranties. 

In the first quarter, First American reported earnings of $46.7 million. The title insurance and related services segment brought in revenue of $1.3 billion, leading to pre-tax income of $72.7 million. By comparison, revenue on the home warranty business side totaled $105 million, with profit of $20.3 million before taxes. 

In the wake of significant contraction in originations over the past two years, the mortgage industry has seen waves of mergers and acquisitions, primarily among home lenders. But companies serving lenders, including technology companies and title insurers, have also felt the effect of slowing business. Most recently, financially struggling Doma announced it was ending its run with a sale to Title Resources Group.