This month’s NAHB/First American IMI reveals that the number of housing markets showing measurable improvement nearly doubled in January with the addition of 40 new metropolitan areas to the index. The IMI now boasts 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry. The list also reflects the deletion of five metros from last month: Anchorage, Alaska; Fort Wayne, Ind.; Canton, Ohio; Scranton, Pa., and Charleston, W.Va.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. New entrants to the list in January include the following (listed alphabetically by state):

Florence, Ala.

Tuscaloosa, Ala.

Fayetteville, Ark.

Denver, Colo.

Greeley, Colo.

Bridgeport, Conn.

New Haven, Conn.

Cape Coral, Fla.

Jacksonville, Fla.

Punta Gorda, Fla.

Honolulu, Hawaii

Ames, Iowa

Des Moines, Iowa

Dubuque, Iowa

Elkhart, Ind.

Indianapolis, Ind.

Lafayette, Ind.

Lake Charles, La.

Worcester, Mass.

Grand Rapids, Mich.

Lansing, Mich.

Monroe, Mich.

Minneapolis, Minn.

Columbia, Mo.

Joplin, Mo.

Fargo, N.D.

Manchester, N.H.

Cincinnati, Ohio

Oklahoma City, Okla.

Tulsa, Okla.

Corvallis, Ore.

Erie, Pa.

Philadelphia, Pa.

Chattanooga, Tenn.

Clarksville, Tenn.

Nashville, Tenn.

College Station, Texas

Dallas, Texas

Victoria, Texas

Madison, Wisc.

"The fact that the list of improving housing markets nearly doubled this month shows that a significant, positive trend is developing, and is even more relevant when you consider the expanding geographic distribution of the list – which now includes 31 states and the District of Columbia," noted NAHB Chairman Bob Nielsen, a home builder from Reno, Nev.  "This trend could be even stronger if not for the numerous impediments that continue to slow a housing and economic recovery, including overly restrictive lending policies and the growing inventory of distressed properties in certain markets."

"While relatively small metropolitan areas continue to dominate the list of improving housing markets, it’s important to note that several major metros in diverse parts of the country have now joined the field as well – including such places as Dallas, Denver, Honolulu, Indianapolis, Nashville and Philadelphia," added NAHB Chief Economist David Crowe. "This is an encouraging sign that gradually strengthening economic conditions are starting to take hold across a broader swath of America."

"The substantial gain in the number of improving housing markets in January shows that more consumers are looking favorably at a home purchase in light of today’s historically low interest rates and attractive prices, particularly in areas where job growth has picked up," added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list. A complete list of all 76 metropolitan areas currently on the IMI is available at: www.nahb.org/imi.

Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi.  

About First American
First American Financial Corporation (NYSE: FAF)is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other

real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

About NAHB
The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

At the present time, the company expects to issue press releases announcing quarterly and year-to-date financial results on the following dates:

• Thursday, Feb. 23, 2012 – 2011 Fourth Quarter and Year-End Results
• Thursday, April 26, 2012 – First Quarter Results
• Thursday, July 26, 2012 – Second Quarter Results
• Thursday, Oct. 25, 2012 – Third Quarter Results

About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

HARP 2.0 differs significantly from the previous version of HARP in that there is no limitation on loan-to-value (LTV) ratios, credit score requirements are lower and mortgage lenders can approach borrowers proactively, in accordance with the program guidelines. These program changes are expected to help lenders reach a previously untapped population of American homeowners, allowing those qualified to refinance into loans with lower interest rates and, in some cases, shorter terms.

First American’s Quick Start HARP solution supports the revised program by helping mortgage lenders develop their own "push” or "pull” approach to soliciting homeowners.  In a "push” version, the lender utilizes internal loan data and First American’s proprietary title automation to proactively solicit homeowners who might benefit from HARP 2.0. The "pull” version is used when homeowners contact the lender to inquire about HARP 2.0.  In both cases, First American’s automated title technology delivers a title commitment to the lender in seconds, rather than a non-binding title "decision”.

First American developed its original solution in early 2010, for use with the first version of HARP. In doing so, the company worked closely with mortgage lenders to design specialized workflows that improve pull-through and closing times. Quick Start HARP adds to these features with significantly reduced title premium rates and settlement costs for qualified refinances. This allows lenders to further assist homeowners by offering "no closing cost” loans that roll fees into the mortgage principal or into the new mortgage rate.

"Successful ‘push’ programs have the dual advantages of cost and time reduction for lenders and borrowers,” said Patrick E. McLaughlin, president of First American Title Insurance Company’s Mortgage Services division. "Our experience and capacity will be advantageous to lenders who want to maximize their ability to bring HARP 2.0’s benefits to qualifying borrowers"

HARP 2.0 transactions are prioritized for special handling within First American’s settlement centers and follow streamlined curative guidelines. This results in closings that can be completed in as few as 14 business days. The program can be customized to include mobile notary signings or the use of First American’s eSignSmart, a technology that allows homeowners to sign loan documents electronically on a mobile tablet or digital signing pad.

 "Through advanced, accurate title automation and prioritized processes, we were able to achieve above-average results in speed to loan closings for the first version of HARP,” said Robert Camerota, chief operating officer of First American’s Mortgage Services division. "Our Quick Start HARP solution can be rapidly adapted to a lender’s current or proposed workflow and supports a variety of refinance strategies, including lower interest rates, shorter-term mortgages, earlier rate locks and no closing cost loans.”

About First American Mortgage Services
First American Mortgage Services, a division of First American Title Insurance Company, is a leading provider of origination and default solutions and a primary source of national title insurance, settlement, and valuation services for residential retail originators and servicers.  The division supports all aspects of the residential origination and the default servicing processes, successfully supplying products and services that have assisted in closing more than one million mortgages nationwide.  Through our flexible technology and vast resources, we are unique in our ability to provide customized, comprehensive and seamless solutions.  More information about the division’s solutions can be accessed on its website at www.famortgageservices.com.

About First American Title Insurance Company
The First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. First American Title provides comprehensive title insurance coverage and professional services for purchases, construction, refinances, or equity loans. The company’s thorough searches, title clearance, and insurance help to produce clear property titles and enable the efficient transfer of real estate. 

The transaction is expected to close in January 2012 pending regulatory approval and terms of the deal were not disclosed. With the acquisition of Hexter-Fair, First American will increase its market share by adding 21 new offices in the Dallas-Fort Worth metropolitan area.  

Hexter-Fair’s current owner, David Fair, will remain as chairman of the new entity, Hexter-Fair/First American Title Company, LLC, and will continue to be an integral part of the leadership team.

“This acquisition will significantly enhance First American’s title operations in Dallas-Fort Worth,” said Dennis Gilmore, president of First American Title Insurance Company.  “Together with Republic Title, the new entity will increase our range of service in that area and further our strategy to grow market share in the largest title and settlement services markets.”

About First American Title Insurance Company
First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. The company has its headquarters in Santa Ana, Calif. Information about First American Financial Corporation’s subsidiaries and an archive of its press releases can be found at www.firstam.com.

The cash dividend is payable on Jan. 17, 2012, to shareholders of record as of Dec. 30, 2011. 

About First American
First American Financial Corporation is a leading provider of title insurance and settlement services to the real estate and mortgage industries that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

This month’s NAHB/First American IMI reveals that the number of improving housing markets continued to expand for a fourth consecutive month, rising from 30 in November to 41.

The index identifies metropolitan areas that have shown at least six months of improvement in employment and housing prices as well as an increase in housing permits.

The December list featured 20 new additions, including several major markets such as Washington, D.C., San Jose, Calif., and Toledo, Ohio. Meanwhile, nine smaller markets dropped off the list, primarily due to softer house prices. The following metro areas are new to the list for December:

Ann Arbor, Mich.

Athens, Ga.

Boulder, Colo.

Burlington, Vt.

Canton, Ohio

Charleston, W. Va.

Danville, Va.

Fort Wayne, Ind.

Grand Forks, N.D.

Jackson, Miss.

Kingsport, Tenn.

Laredo, Texas

Lincoln, Neb.

Muncie, Ind.

Muskegon, Mich.

San Jose, Calif.

Scranton, Pa.

Toledo, Ohio

Washington, D.C.

Winchester, Va.

"The increases we continue to see in the number and geographic diversity of improving metros are quite encouraging, and evidence of the fact that all housing markets are dependent on uniquely local factors," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. He noted that as of December, a total of 21 states and the District of Columbia are represented on the improving markets list -- up from14 states represented in November.

"The continued modest improvement we see across diverse housing markets combined with the recent improvement in unemployment are encouraging signs that the economy may finally be gaining some traction," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The nine markets that dropped off the IMI in December include Alexandria, La., Fairbanks, Alaska, Hinesville, Ga., Houma, La., Jonesboro, Ark., Lima, Ohio, Pine Bluff, Ark., Sumter, S.C., and Waco, Texas. All but two of these metros fell from the list due to softening house prices. The exceptions to the rule were Jonesboro and Waco, where declines were registered in employment and single-family housing permits, respectively.

The total list of improving housing markets in December, as defined by the IMI, includes the following 41 entries (listed alphabetically by state):

Anchorage, Alaska

San Jose, Calif.

Boulder, Colo.

Fort Collins, Colo.

Washington, D.C.

Athens, Ga.

Davenport, Iowa

Waterloo, Iowa

Kankakee, Ill.

Fort Wayne, Ind.

Muncie, Ind.

Monroe, La.

New Orleans, La.

Ann Arbor, Mich.

Muskegon, Mich.

Jackson, Miss.

Fayetteville, N.C.

Winston-Salem, N.C.

Bismarck, N.D.

Grand Forks, N.D.

Lincoln, Neb.

Canton, Ohio

Toledo, Ohio

Pittsburgh, Pa.

Scranton, Pa.

Williamsport, Pa.

Kingsport, Tenn.

Amarillo, Texas

Corpus Christi, Texas

Laredo, Texas

McAllen, Texas

Midland, Texas

Odessa, Texas

Sherman, Texas

Tyler, Texas

Danville, Va.

Winchester, Va.

Burlington, Vt.

Charleston, W.V.

Casper, Wyo.

Cheyenne, Wyo.

"The December IMI results are very much in keeping with the latest government housing data and our own builder surveys, which have shown modest signs of improvement in certain individual markets where employment is gaining and distressed properties are not as numerous," said NAHB Chief Economist David Crowe. "These gradual improvements are now becoming evident not just in small, energy-producing metros that have previously dominated the IMI, but also in several larger markets and areas with more diverse economies."

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Please visit www.nahb.org/imi for additional data, tables and a list of 2011 future economic release dates.

Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi.

About First American
First American Financial Corporation (NYSE: FAF)is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

About NAHB
The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

This month’s IMI reveals that the number of improving housing markets continued to expand for a third consecutive month, rising from 23 to 30. Nine metropolitan areas were added to this month’s list, including Cheyenne, Wyo., Corpus Christi, Texas, Davenport, Iowa, Fort Collins, Colo., Hinesville, Ga. Lima, Ohio, Monroe, La., Tyler, Texas and Williamsport, Pa.

The index identifies metropolitan areas that have shown at least six months of improvement in employment, housing prices and an increase in housing permits. The following metros were listed on the November index:

Alexandria, La.

Amarillo, Texas

Anchorage, Alaska

Bismarck, N.D.                                                                                         

Casper, Wyo.

Cheyenne, Wyo.

Corpus Christi, Texas

Davenport, Iowa

Fairbanks, Alaska

Fayetteville, N.C.

Fort Collins, Colo.

Hinesville, Ga.

Houma, La.

Jonesboro, Ark.

Kankakee, Ill.

Lima, Ohio

McAllen, Texas

Midland, Texas

Monroe, La.

New Orleans, La.

Odessa, Texas

Pine Bluff, Ark.

Pittsburgh, Pa.

Sherman, Texas

Sumter, S.C.

Tyler, Texas

Waco, Texas

Waterloo, Iowa

Williamsport, Pa.

Winston-Salem, N.C.

“Texas continues to dominate the list of improving housing markets in November, increasing its number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average,” said NAHB Chairman Bob Nielsen, a homebuilder from Reno, Nev. “Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery.”

“When we start to look at real estate at the local level, we can see that economic conditions are improving,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. “These green shoots of housing recovery during a cold economic spring remind us all that real estate is local and that housing will recover one market at a time.”

The two metros that dropped off the list in November were Iowa City, Iowa and Wichita Falls, Texas. These metros experienced declines in their employment and permit data, respectively.

“The November IMI remains heavily weighted towards smaller cities, with Pittsburgh and New Orleans as the only major metros represented,” said NAHB Chief Economist David Crowe. “This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent.”

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Please visit www.nahb.org/imi for additional data, tables and a list of 2011 future economic release dates.

Editor’s Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday, in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi.  

About First American
First American Financial Corporation (NYSE: FAF)is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

About NAHB
The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

SANTA ANA, Calif., Oct. 27, 2011 /PRNewswire/ -- First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance and settlement services for real estate transactions, today announced financial results for the third quarter ended Sept. 30, 2011.

Current Quarter Highlights

• Title Insurance and Services segment pretax income of $48.9 million, which includes:
  • $13.0 million reserve charge in connection with Bank of America's pending lawsuit
  • $14.7 million increase in claim loss reserves for prior policy years, primarily 2007
• Commercial division revenues of $89.0 million, up 22 percent compared to last year
• International division revenues of $97.4 million, up 24 percent compared to last year
• Specialty Insurance segment pretax income of $6.7 million for a 9.0 percent margin
• Cash flow from operations of $53.2 million
• Debt-to-total-capital ratio of 12.3 percent as of Sept. 30, 2011

Total revenues for the third quarter of 2011 were $965.0 million, a decline of 4 percent relative to the third quarter of 2010. Net income in the current quarter was $21.0 million, or 20 cents per diluted share, compared with net income of $33.1 million, or 31 cents per diluted share, in the third quarter of 2010. The current quarter results include net realized investment losses of $3.3 million, or 2 cents per diluted share, compared with $0.4 million, or 0.2 cents per diluted share in the third quarter of 2010. The current quarter results also include total reserve additions of $27.7 million, or 15 cents per diluted share, compared with $10.3 million, or 6 cents per diluted share in the third quarter of 2010.

"We are encouraged by the continued strength in our commercial business, a strong rebound in our International division, and a significant increase in refinance orders opened during the third quarter," said Dennis J. Gilmore, chief executive officer at First American Financial Corporation.  "The quarter also benefited from the $40 million annualized expense reduction program that we implemented last quarter.

"As lower mortgage interest rates took hold in the quarter, we experienced a significant increase in open orders in August that has largely continued through September and into October.  This improved order flow, coupled with continued momentum in our commercial business, provides us with a strong pipeline going into the fourth quarter."  

Total revenues for the Title Insurance and Services segment were $897.8 million, a 3 percent decline from the same quarter of 2010. The lower total revenues were driven by a decline in both direct and agent title premiums, partly offset by higher information and other revenues. Direct premiums and escrow fees were down 1 percent, compared to the third quarter of 2010, due to an 18 percent decline in the number of direct title orders closed in the quarter that was largely offset by higher average revenue per order. Average revenue per direct title order was $1,561, an increase of 21 percent, compared with the third quarter of 2010, primarily due to a change in the mix toward higher-premium resale and commercial transactions. Agent premiums were lower by 8 percent in the current quarter, reflecting the normal reporting lag of approximately one quarter.

Information and other revenues were $160.2 million this quarter, up 5 percent as compared to the same quarter of last year, driven by our Canadian operations. Total investment income was up 2 percent in the third quarter, reflecting lower net realized investment losses compared to last year.

Personnel costs were $279.0 million in the third quarter, a decrease of $6.1 million, or 2 percent, compared with the third quarter of 2010. This decline was primarily due to a reduction in U.S. headcount and reduced costs related to employee benefit plans.  

Other operating expenses were $174.0 million in the third quarter, down $8.7 million, or 5 percent, compared with the third quarter of 2010. This decrease was primarily due to lower office-related costs and a reduction in consulting expenses that were partially offset by an increase in production-related expenses in the company's commercial, default and international businesses.

The provision for policy losses and other claims was $69.5 million in the third quarter, or 9.7 percent of title premiums and escrow fees, up $20.0 million compared with the same quarter of the prior year. The current quarter rate of 9.7 percent reflects an ultimate loss rate of 5.8 percent for the current policy year and includes $14.7 million in unfavorable development for prior policy years, primarily 2007, and a $13.0 million reserve in connection with Bank of America's pending lawsuit against the Company.

While the Company estimates its financial exposure from this lawsuit to be between $13 million and $42 million, its best estimate of its financial exposure is $13 million, which is also the amount for which the Company has offered to settle the case. These amounts do not reflect any potential recovery from third parties.  

Pretax income for the Title Insurance and Services segment was $48.9 million in the third quarter, compared with $60.0 millionin the third quarter of 2010, or a decrease of 19 percent. Pretax margin was 5.4 percent in the current quarter, compared with 6.5 percent in the third quarter of 2010.

Total revenues for the Specialty Insurance segment were $74.3 million in the third quarter of 2011, essentially flat compared with the third quarter of 2010. Pretax margin was 9.0 percent, down from 16.4 percent in the third quarter of 2010. The overall loss ratio in the Specialty Insurance segment was 60 percent in the current quarter, compared with 53 percent in the prior year.  Policy losses were higher in both the home warranty and property and casualty business lines during the quarter.

First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance and settlement services for real estate transactions, today announced financial results for the third quarter ended Sept. 30, 2011.

Website Disclosure

First American posts information of interest to investors at www.firstam.com/investor. This includes opened and closed title insurance order counts for its direct title insurance operations, which are posted approximately 15 days after the end of each month.

Forward-Looking Statements

Certain statements made in this press release and the related management commentary and responses to investor questions, including but not limited to those related to the fourth quarter pipeline, the estimated financial exposure from the Bank of America litigation, the outlook for our commercial business, CoreLogic's review of strategic alternatives, future market conditions, and future organic growth and strategic investments, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may contain the words "believe," "anticipate," "expect," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements include: interest rate fluctuations; changes in the performance of the real estate markets; volatility in the capital markets; unfavorable economic conditions; impairments in the company's goodwill or other intangible assets; changes in measures of the strength of the company's title insurance underwriters, including ratings and statutory surpluses; failures at financial institutions where the company deposits funds; changes in applicable government regulations; heightened scrutiny by legislators and regulators of the company's Title Insurance and Services segment and certain other of the company's businesses; reform of government-sponsored mortgage enterprises; limitations on access to public records and other data; regulation of title insurance rates; inability of the company's subsidiaries to pay dividends or repay funds; expenses of and funding obligations to the pension plan; weakness in the commercial real estate market and increases in the amount or severity of commercial real estate transaction claims; material variance between actual and expected claims experience; systems interruptions and intrusions, wire transfer errors or unauthorized data disclosures;inability to realize the benefits of the company's offshore strategy; product migration; increases in the size of the company's customers; losses in the company's investment portfolio; and other factors described in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2011, as filed with the Securities and Exchange Commission. The forward-looking statements speak only as of the date they are made. The company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

A primary benefit of the new portal, which can be accessed online at www.myFirstAm.com, is its ability to send notifications to its users via email or text message when key tasks in the closing process are completed. These notifications, along with other integrated features, help streamline residential real estate transactions, which can result in a better buying experience for the consumer.

“The myFirstAm portal is one of several innovative technologies that we’re bringing to market to help ease and simplify the process of doing business with First American Title,” said Dennis Gilmore, chief executive officer of First American Financial Corporation. “It’s an example of our commitment to help streamline the procedures and the communication involved in the real estate transaction process, in turn benefiting both real estate professionals and consumers.”

The myFirstAm suite of tools includes detailed status updates on title insurance and escrow orders; access to useful property information*, including basic property characteristics, sales and tax data, and aerial imagery*; and calculation tools for title insurance and escrow services. It also allows users to electronically place title orders.

“The ability for everyone involved in the transaction to communicate quickly and clearly helps to increase customer satisfaction in our business,” said myFirstAm early adopter Paula Serven, an associate broker with Realty Executives in Arizona and current president of the Scottsdale Area Association of REALTORS®.  “A real estate agent using myFirstAm can easily track their orders’ closing status so they, in turn, can communicate in a timely manner with the appropriate parties.”

The new myFirstAm portal for residential real estate professionals is currently available in Arizona, many areas within Florida, Minnesota, Ohio, and Texas and will deploy nationwide by the end of 2011. A current list of available states, along with an option to subscribe to rollout updates via email, can be found at www.firstam.com/myFirstAm.

* Fees may apply. Not available where prohibited by law. Not available in Texas.

About First American Title Insurance Company
First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. The company has its headquarters in Santa Ana, Calif. Information about First American Financial Corporation’s subsidiaries and an archive of its press releases can be found at www.firstam.com.

The call will follow the release of the company’s earnings results for the third quarter of 2011, which is scheduled earlier that day at 7:00 a.m. ET.
The conference call, which will also be broadcast over the Internet and is open to investors, members of the financial community, the media and other members of the public, can be accessed online at www.firstam.com/investor or by dialing toll free (888) 994-3817. Callers from outside the United States may dial (773) 756-4703. The pass code for the event is “First American.”

An audio replay of the conference call will be available through Nov. 4, 2011, by dialing (203) 369-1399. An audio archive of the call and a copy of the third-quarter 2011 earnings release, including the financial information contained therein, will also be available on First American’s investor website.

About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance and settlement services to the real estate and mortgage industries, that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With revenues of $3.9 billion in 2010, the company offers its products and services directly and through its agents and partners in all 50 states and abroad. More information about the company can be found at www.firstam.com.

This electronic integration helps to increase accuracy and reduce the cycle times and costs associated with loan settlement activities by eliminating the need for re-keying and the manual exchange of data.  By using eCN as the communication backbone, lenders can now transmit loan data and documents directly to settlement partners using FAST and receive data and documents from First American’s FAST system.  It also provides lenders with a complete view of the loan status during origination and closing.

“eLynx and First American are committed to administering and managing an integrated loan and HUD-1 data exchange environment that saves lenders time and money,” explains Sharon Matthews, president and chief executive officer of eLynx. “Both companies’ customers can now easily and seamlessly share their existing workflows to collaborate and deliver loan data for the lifecycle of a loan.”

Christos Bettios, chief information officer for First American Title Insurance Company’s Mortgage Services division, emphasized, “This data integration is based on MISMO/UMDP standards and supports the Fannie Mae and Freddie Mac Loan Quality Initiative, one of the mortgage industry’s most important efforts.”

“Lenders are looking to improve transparency and efficiency in their closing processes,” said Robert Camerota, chief operating officer for First American Title Insurance Company’s Mortgage Services division. “We are helping the lenders we serve to efficiently implement electronic HUD data processing that streamlines their closing workflow while meeting their unique needs.”

The loan and HUD-1 data integration is available to all users of eCN and the fully automated option is available for use by First American Title Insurance Company’s direct operations and its extensive network of agents nationwide.

eLynx and First American will be demonstrating the eCN automated data integration platform to existing customers at MBA’s 98th Annual Convention and Exposition in Chicago, Oct. 9-12, 2011.

About First American Title Insurance Company
First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE:  FAF), traces its history to 1889.  One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad.  The company has its headquarters in Santa Ana, Calif.  Information about First American Financial Corporation’s subsidiaries and an archive of its press releases can be found at www.firstam.com.

About eLynx
eLynx, a portfolio company of American Capital (NASDAQ: ACAS), provides the most widely used network for data-centric document collaboration, distribution, and connectivity services for the financial services and real estate industries. Enterprises use eLynx to capture and maintain data electronically throughout the document life cycle, automating paper-intensive processes, improving workflow, reducing costs and ensuring compliance with industry regulations. The company has built the largest and most comprehensive U.S. real estate settlement agent database and is a recognized leader in electronic closing services. eLynx serves more than 4,000 clients of all sizes worldwide, including 25 of the top 50 U.S. banks and has processed over 50 million loans. More than 4 million users utilize eLynx's enterprise document output solutions. The company was founded in 1994 with headquarters in Cincinnati and offices in Portland, Oregon. It maintains redundant data centers in Beaverton, Oregon, and Cincinnati, Ohio. For more information, visit www.elynx.com.

“AgentNet 2 is just one of the technologies that we are building to streamline communication and business processes for our customers and associates,” said Dennis Gilmore, chief executive officer for First American Financial Corporation. “Through the development of products that simplify workflow, we are demonstrating our commitment to providing the best user experience in the industry.”

AgentNet 2 features include:

• Data input tools – Allow agents to get pricing validation with an enhanced rate calculator and to generate approved closing protection letters and electronic policy jackets with the automatic population of stored data
• Shared visibility of invoices and statements – Provides paperless delivery of invoices, instant access to online statements, and the ability to grant access to past invoices and statements to colleagues and associates
• Payment activity summary and detail – Allows users to locate payment details and make electronic payments
• Remittance options – Enable agents to choose their preferred submission process and view  up-to-date remittance activity at a glance
• Research capabilities – Provide transparent access to financial data and electronically organizes transaction details for simplified viewing

Current AgentNet users will be automatically upgraded to AgentNet 2 by November 7, 2011. Following this upgrade, AgentNet 2 users will have the ability to integrate with some of the leading title production systems for a convenient and seamless user experience. This integration will automatically populate data from a user’s existing title production software into AgentNet 2, helping to keep data consistent across all interfaces and minimizing the need to work across systems.

Agents interested in using the new AgentNet 2 may contact First American’s Agency Services Center at 866-701-3361.

About First American Title Insurance Company
First American Title Insurance Company, the largest subsidiary of First American Financial Corporation (NYSE: FAF), traces its history to 1889. One of the largest title insurers in the nation, the company offers title services through its direct operations and an extensive network of agents throughout the United States and abroad. The company has its headquarters in Santa Ana, Calif. Information about First American Financial Corporation’s subsidiaries and an archive of its press releases can be found at www.firstam.com.

Through the program, homeowners are automatically issued a courtesy notice by the Riverside County Assessor-County Clerk-Recorder’s office after a deed or similar instrument affecting property ownership is recorded. Property owners are also provided with instructions on how to notify the Riverside County District Attorney real estate fraud unit if fraud is suspected.

California state law currently requires that an original document be mailed to the address on the document after it is recorded.  However, the property owner's address is not always listed as the mailing address. The new notice will be mailed to property owners regardless of the address on the document. By leveraging its geographically indexed title plants, Data Trace is able to provide the appropriate data to quickly notify rightful homeowners that a transaction has occurred involving their property.

“As a curator of property data, partnering with government agencies in the fight against fraudulent real estate transactions is a natural fit,” commented Robert Karraa, president of Data Trace.  “Our service allows a county clerk-recorder’s office to alert property owners of significant and potentially unknown transactions attached to their real estate.”

While these courtesy notices do not directly prevent real estate fraud, they are designed to empower individual homeowners to initiate an immediate investigation.  In the fiscal year of 2010, financial institutions filed over 70,000 Suspicious Activity Reports relating to mortgage fraud, according to the Federal Bureau of Investigation in the 2010 Mortgage Fraud Report Year in Review.  The new notices can help homeowners detect fraudulent activity so that they can notify law enforcement agencies and financial institutions quickly, allowing those organizations to investigate the situations in a timely manner.

About Data Trace
Data Trace Information Services LLC provides technology that enables settlement services companies to connect to regional title databases and access them using a standardized interface. The Data Trace system is the largest and most advanced of its kind and delivers title history information, property tax assessment and payment data, document images and property profiles in major metropolitan areas across the United States. With its significant geographical coverage, Data Trace’s title plant and tax database of nearly 1 billion records is the broadest and most comprehensive title information system available and is used by the largest national title insurance underwriters in the U.S. For additional information, visit Data Trace's website at www.eDataTrace.com.

A live webcast of the presentation and the accompanying slides will be available at www.kbw.com/news/conferenceInsurance2011_Webcast.html and on First American’s website at www.firstam.com/investors A replay of the presentation will be available on both websites for 90 days after the event.

About First American
First American Financial Corporation is a leading provider of title insurance and settlement services to the real estate and mortgage industries that traces its heritage back to 1889. First American and its affiliated companies also provide title plant management services; title and o