TITLE INSURANCE INDUSTRY STRUGGLING
INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS
November 19th, 2008
In a recent post, I discussed the demise of 2 of the 5 title companies that served Redding/Shasta 
County. Now, the three remaining title insurance companies are in the red. First American is the largest title insurer in the country and, despite aggressive cost-cutting measures earlier this year (including 1,250 layoffs) they reported a $8.3 million third quarter loss. Since early 2007, they have laid off 5,800 employees.
Fidelity Title, also doing business in Redding, is the second-biggest title insurer in the U.S. They reported a staggering $198 million third-quarter loss. In attempts to stem the tide of red ink, Fidelity closed 115 title and escrow offices during the third quarter of 2008 and laid off 1,100 employees-10% of its workforce.
Fourth-ranked Stewart Information Services, which underwrites title insurance policies for Placer Title Company (the third remaining escrow company serving the Redding/Shasta County market area), reported 
a $30 million loss in the same quarter despite closing 40 branches and cutting 470 jobs. Since the market cycle downturn, 2,900 jobs have been cut By Stewart which represents 30% of their workforce.
Locally, Placer Title is the only escrow company to retain their title plant. First American and Fidelity Title contract to Sacramento to have their Preliminary Title Reports prepared. Before the real estate market 
downturn, five title companies and five title plants served the Greater Redding area. Chicago Title closed their Redding office earlier this year and merged with Fidelity Title, their parent company.
Placer Title Company primarily operates in Northern California but does have offices in Idaho and Montana. I did not look for any data regarding the financial health of their escrow operations. They are the only provider of title and escrow services with a local title plant. Unlike other areas of California, title and escrow companies operate under one roof here in the Northstate.
Five title insurers control 93% of the market. They are:
- First American (30%)
- Fidelity (26%)
- LandAmerica (19%)
- Stewart (12)
- Old Republic (5%)
Nearly 1 year ago, Alliance Title abruptly closed their doors statewide just a few days before Christmas. Many skilled and wonderful employees were laid off, some being scooped up by their competitors, and others have had to find other work locally or move to greener pastures, wherever that may be. Good luck to one and all!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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