CoreLogic Spun Off, Bets On Demand For Mortgage Data
June 01 2010 - 4:40PM
Dow Jones News
The spin-off of the mortgage database division of First American
CoreLogic, announced on Tuesday, will create a $2 billion firm that
hopes to tie its future growth to increased demand for
information.
The newly formed firm, CoreLogic (CLGX), will focus on
information services, analytics and legal and marketing services.
First American CoreLogic was formed through the merger of First
America Real Estate Solutions and CoreLogic. First American is a
title company based in Orange County, Calif.
Once spun off, the remaining company, First American Financial
Corp. (FAF), will provide title insurance and settlement
services.
This split is expected to replicate that of Lender Processing
Services Inc. (LPS) from Fidelity National Information Services
(FIS). LPS has established itself as a provider of technology
services to the mortgage and real-estate sectors.
Even before the split, CoreLogic has the largest database of
housing related consumer data from more than 99% of all counties in
the U.S. Investors and market participants purchase the information
to keep tabs on consumer performance and market trends.
The company expects to benefit from the push toward transparency
and monitoring. However, 2010 is expected to be slower than
previous years with earnings projected to be between $400 million
and $430 million, and revenue estimated to be between $1.85 billion
and $1.95 billion.
Revenue from these units totaled $2 billion in 2009, and
earnings was at $468 million, the company said.
The former chief financial officer of Freddie Mac (FRE), Anthony
"Buddy" Piszel, who became the CFO and treasurer of First
Financial, will switch to CoreLogic and hold the same title.
-By Prabha Natarajan, Dow Jones Newswires; 212-416-2468;
prabha.natarajan@dowjones.com
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