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First American Financial's (FAF) Unit Partners With Home Point

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First American Financial Corporation’s (FAF - Free Report) member unit Docutech has entered into a partnership with Home Point Financial to assist borrowers with digital mortgage closing solution.

Founded in 2015, Ann Arbor, MI-based Home Point Financial delivers residential mortgage products and services. It boasts the second-largest wholesale lender and the 13th largest correspondent lender in the United States. It is a licensed mortgage lender, providing conventional, FHA, USDA, VA and many other loan products.

Docutech provides a range of document technology solutions for mortgage, home equity and consumer lending, ranging from document generation to eDelivery, eSign, eClose and print fulfillment. Its solutions aid in providing a digital real-estate closing experience. Solex is a comprehensive, flexible platform, which provides lenders with the choice of eDelivery, eSign, eClose and eVault.

Therefore, this partnership will provide borrowers of Home Point an efficient and beneficial mortgage process. It will enable them to review and sign the majority of their closing documents from home, which will ensure its employees’ safety in this current uncertain environment.

The majority of First American's business is dependent on activity in the real estate and mortgage markets. Its Title insurance and Service segment is engaged in assisting homebuyers and sellers, real estate agents and brokers, mortgage lenders, and title agencies to close transactions. Increased mortgage financing availability has a positive effect on residential real estate activity, which typically increases the company’s revenues.

In March 2019, Docutech was acquired by First American for around $350 million to enhance the mortgage business, boost the home-buying experience for consumers, and aid digital transformation of the real estate settlement process.

The buyout of Docutech increased First American transaction volumes 150% from the year- ago quarter. The innovative technology of Docutech complemented the company’s existing capabilities to cater to lender customers, with beginning-to-end digital mortgage and settlement services.

Moreover, Docutech contributed $6.4 million to First American’s top line in the first quarter of 2020.

Shares of this Zacks Rank #2 (Buy) property and casualty insurer have lost 7.8% year to date compared with the  industry’s decline of 15.5%. The company’s policy of ramping up growth and capital position should help the stock to gain momentum.




Other Stocks to Consider

Some other top-ranked insurance stocks include Fidelity National Financial Inc (FNF - Free Report) , The Hanover Insurance Group, Inc. (THG - Free Report) and Kingstone Companies, Inc. (KINS - Free Report) . While Fidelity National sports a Zacks Rank #1 (Strong Buy), Hanover Insurance and Kingstone Companies carry a Zacks Rank #2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Fidelity National provides various insurance products in the United States and offers title insurance, escrow, other title related services and home warranty insurance. It surpassed estimates in each of the last four quarters, with the average surprise being 21.13%.

Hanover Insurance provides various property and casualty insurance products and services in the United States. It surpassed estimates in each of the last four quarters, with the average surprise being 6.19%.

Kingstone Companies underwrites property and casualty insurance products to small businesses and individuals in New York. It offers personal lines insurance products. It surpassed estimates in one of the last four quarters, with the average surprise being 87.26%.

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