MIAMI, Dec. 6, 2018
/PRNewswire/ -- North American Title Group (NATG), a
wholly-owned subsidiary of homebuilder Lennar (NYSE: LEN and
LEN.B), today announced that it plans to combine its underwriter
and the majority of its retail title business with States Title,
Inc.
States Title is a Silicon Valley-based "insurtech" startup that
uses predictive analytics to underwrite the title on a property
nearly instantaneously, helping customers close real estate
transactions safely, quickly, and inexpensively.
The deal, which is expected to close in January 2019 if pending regulatory approval in
California and Arizona is obtained by year end, calls for
States Title to acquire NATG's underwriter, North American Title
Insurance Company (NATIC), and the majority of the retail business
of NATG's national title agency, North American Title Company
(NATC). The new company will continue to operate under the North
American Title brand and Lennar will assume a substantial minority
equity ownership stake.
"By partnering with North American Title, we accelerate our
shared vision to build the title company of the future," said
Max Simkoff, States Title's founder
and CEO. "Buying a home, and refinancing that home, are among the
most important financial decisions in a person's life. We believe
that the experience of doing so should be fast, simple, safe and
affordable. Title and settlement are critical to every real estate
transaction. Modern technology and powerful analytics will
supplement and enhance our associates' ability to deliver
outstanding service to every single one of our customers."
"This transaction builds on our strategy of aligning with
technology innovators to streamline and enhance the overall
customer experience," said Eric
Feder, Senior Lennar Executive, who will join States Title's
board of directors. "Partnering with States Title keeps us at the
forefront of innovation while maintaining the integrity of the
title insurance that people have trusted us with for decades."
Max Simkoff will remain the CEO
of the combined company, and the newly-formed management team will
include current leadership from both States Title and North
American Title, as well as new hires with relevant expertise. Title
industry veteran Judd Hoffman,
formerly President of the Direct Division at First American
Title, has joined the new company as Chief Transformation Officer
and Noaman Ahmad will join as Chief
Financial Officer. Matt Zames,
President of Cerberus Capital Management and former JP Morgan Chief
Operating Officer, has joined the board of directors.
NATC's builder business, which delivers settlement services to
Lennar's homebuyers, and a portion of its retail business, will
remain with Lennar and operate as CalAtlantic Title. Approximately
two-thirds of NATG's current associates will transition to the new
company, while the balance will remain with CalAtlantic Title.
Fifth Wall, a real estate technology-focused fund, introduced
States Title and Lennar (a Fifth Wall Strategic Limited Partner)
after initially co-leading States Title's Series A financing round
in 2016.
About States Title
Founded by Max Simkoff and backed by leading venture
capitalists in Silicon Valley, States Title uses predictive
analytics and cutting-edge technology to deliver a modern title and
escrow platform. As part of the digital transformation occurring in
the mortgage industry, States Title believes that all underwriting,
settlement and closing will be quickly and efficiently administered
using technology that is built with the lender, agent and
customer's experience in mind. States Title is headquartered in
San Francisco, California. To
learn more, visit www.statestitle.com.
About North American Title
With well over 1,300
associates and a network of branches from coast to coast, North
American Title Group, LLC (NATG) is among the largest real estate
settlement service providers in the
United States. Consisting of both agent and underwriter
operations, NATG reported annual net revenues in fiscal 2017 of
$272.7 million. North American
Title's agency network operates nationally under the name North
American Title Company and similar names (NATC) in 19 states:
Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, Minnesota, Nevada, New
Jersey, New York,
North Carolina, Pennsylvania, South
Carolina, Texas,
Utah and Virginia, in addition to the District of Columbia. Through its relationship
with its expanding affiliate network, NATC provides real estate
settlement services in all 50 states. NATIC, its underwriter
subsidiary, is licensed in 40 jurisdictions and issued 315,000
policies in fiscal year 2017. NATG is headquartered in Miami, Florida. To learn more, visit
http://www.nat.com.
About Lennar Corporation
Lennar Corporation, founded
in 1954, is one of the nation's leading builders of quality homes
for all generations. Lennar builds affordable, move-up and active
adult homes primarily under the Lennar brand name. Lennar's
Financial Services segment provides mortgage financing, title
insurance and closing services for both buyers of Lennar's homes
and others. Lennar's Multifamily segment is a nationwide developer
of high-quality multifamily rental properties. For further
information about Lennar, please visit www.lennar.com.
Forward-Looking Statements
Some of the statements in
this press release are "forward-looking statements," as that term
is defined in the Private Securities Litigation Reform Act of 1995,
including statements regarding the expected time of completion of
the transaction and the expected management of the combined
company. These forward-looking statements are subject to risks,
uncertainties and assumptions, including the risk that pending
regulatory approvals are not obtained, the transaction does not
close, or closing is delayed. Accordingly, these forward-looking
statements should be evaluated with consideration given to the many
risks and uncertainties that could cause actual results and events
to differ materially from those in the forward-looking statements.
They include the risks detailed in Lennar's filings with the SEC,
including the "Risk Factors" section of Lennar's Annual Report on
Form 10-K for the fiscal year ended November
30, 2017. It is not possible for management to predict all
the possible risks that could affect Lennar or to assess the impact
of all possible risks on Lennar's business.
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SOURCE Lennar Corporation