Fidelity Buys Subservicer LoanCare

Posted by Orb Staff on May 15, 2009 No Comments
Categories : Mortgage Servicing

ty National Financial Inc. (FNF), a provider of title insurance, specialty insurance, claims management services and information services, has signed a definitive agreement under which it will acquire subservicing shop LoanCare Servicing Center Inc. (LoanCare). LoanCare, founded in 1983, provides subservicing services on more than 100,000 loans for 90 companies in all 50 states, making it approximately the seventh largest subservicer in the nation. Last year, the company generated revenue of approximately $19 million and adjusted pre-tax earnings of approximately $4.4 million. The total purchase price was approximately $16.3 million,and LoanCare had tangible equity of approximately $12.4 million as of Feb. 28. A provider of traditional subservicing, outsourced loss mitigation and other servicing-related products and services, LoanCare has previously been a wholly owned subsidiary of LandAmerica Financial Group Inc., and the closing of the acquisition is subject to the satisfaction of certain closing condition. These conditions include the approval of the court overseeing the LandAmerica Chapter 11 bankruptcy proceeding. ‘We are excited to add the LoanCare capabilities to the FNF family of companies,’ says Chairman William P. Foley, II. ‘We believe that LoanCare and ServiceLink, our national lender platform, can generate substantial ancillary product revenue opportunities through the subservicing and loss mitigation platforms, including additional title and closing revenue, trustee sale guarantees, valuations and a broad range of significant default based revenues.’ SOUR

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