A mortgage industry service provider that helps lenders identify mortgage fraud risk and prevent fraud on home loans is being acquired.
First American Financial Corp. previously operated a mortgage fraud prevention business when it owned First American CoreLogic.
That changed, however, when the Santa Ana, Calif.-based company spun off CoreLogic through an initial public offering in 2010.
But now First American is getting back into the business.
On Thursday, First American announced that it has reached an agreement to acquire Interthinx Inc. from Verisk Analytics Inc.
Interthinx, a Mortgage Daily advertiser, provides loan quality analytics, decision support tools and loan review services for the mortgage industry. It was founded in 1996.
In addition, the Agoura Hills, Calif.-based firm publishes the quarterly National Mortgage Fraud Risk Index.
“The sweeping market and regulatory changes of the past several years have led to more demanding mortgage origination requirements,” First American Financial Corp. Chief Executive Officer Dennis Gilmore said in the news release. “Our customers have expressed to us a desire for tighter integration between loan origination activities, loan quality verification processes, and title and settlement services.”
Scott Stephenson, CEO of Jersey City, N.J.-based Verisk, noted in a separate statement that the sale will enable his firm to focus on businesses most closely aligned with its strategy.
The $155 million deal, which is subject to closing conditions and regulatory reviews, is expected to close by the end of next month.
