First American’s shares fell 2.1% after earnings, a roughly flat reaction. Results reflected a split market: commercial title activity was strong, while residential conditions remained pressured by affordability and higher mortgage rates; management expects that pattern to continue.
- Adjusted EPS was $1.78, up 5% year over year.
- National Commercial Services posted its highest third-quarter revenue on record; commercial refinance premium revenue rose 49%, and eight of 11 asset classes grew year over year.
- Residential purchase revenue declined 3% and refinance revenue declined 1%. Management said mortgage rates had risen to 7.5% and expects a lower-for-longer residential origination environment.
- Title segment investment income grew 11%, with First American Trust investment income up 39%.
- Endpoint’s automation rate reached 42% in Q3, versus 30% in Q1. Sequoia completed 17% of California purchase transactions processed through Endpoint and 34% of California refinance transactions.
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