Smaller title shops growing with an eye on being acquired

In last week's newsletter, I posed the question of which strategy will result in larger market share: M&A or tech development? And I got some interesting responses.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Good Afternoon —   In last week's newsletter, I posed the question of which strategy will result in larger market share: M&A or tech development? And I got some interesting responses.   Sarah Perkins, the director of strategic accounts at Clear Title Agency of Arizona, said that she believes a firm's strategy of choice will depend on its size.   "Fidelity National is less likely to get FTC approval on a title company acquisition due to its size and market share than Stewart or Old Republic," Perkins said in an email. "First American is not too far behind FNF in market share so again, acquiring title companies could be tricky."   Perkins said where she expects to see M&A from the larger two of the "Big Four" is with technology, but that Stewart and Old Republic will also be looking to acquire some more technology firms.   While small, local title firms do not come close to the "Big Four" in terms of market share, they vastly outnumber them. Due to this I asked Perkins if she felt that a lot of these smaller firms were trying to build in order to make themselves appealing enough to be bought out by one of the top-10 underwriters.   "About two-three years ago, a mid-size local company started acquiring older, super small companies as well as heavily recruiting," Perkins said. "It was odd behavior for a company I had competed against for over a decade. Then Stewart Title bought them out and everything made sense."   She also went on to say that she has seen some title firms start with the end goal of being acquired, but she has seen others end the acquisition discussion before it starts. "Ultimately it depends on the title company's leadership and what they want," she said.   The one thing Perkins said we could for sure expect in 2022 is more title M&A from Stewart and, as if right on cue, Stewart announced Friday that it has acquired Franklin, Tennessee-based Homeland Title.   Nashville and the surrounding areas are some of the fastest growing in the country, so this acquisition is in line with the ones Stewart made at the close of 2021.   But I want to hear from you. Are you involved with a small title firm? What do you feel the goal of your firm is: building and remaining independent or building and becoming acquired? And just for fun: Which market do you think Stewart has its sights set on next?   Until next week,   Brooklee Han Real Estate Reporter bhan@housingwire.com Covius integrates Stavvy for RON and eSign on loan mods Closing, Mortgage, Remote online notarization Covius is integrating the Stavvy platform into its loss mitigation and loan modification solutions to offer RON and eSignature capabilities. The Guide to Accelerating Closings in 2022 Presented by First American Docutech The most advantageous step lenders can take to combat margin compression – that will have an immediate impact, as well as long-term scalability – is to digitize their loan origination process. This eBook spotlights how lenders can digitize closings to improve the experience for their customers, reduce costs and close more loans faster. The big short in housing supply isn't going away Politics & Money, Real Estate, HW+ Exclusive Content Mark Fleming, chief economist for First American, examines the housing market's supply-demand imbalance, and why it's likely to continue. A closer look at housing markets across the country Real Estate, HW+ Exclusive Content What's happening in the Honolulu, Hawaii housing market? According to one agent, rich "mainland" residents have replaced international buyers, who are restricted in their travel amid the pandemic. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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