ALTA Releases 2008 Industry Financial Results.Land Title Industry Encouraged by 2009 Refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. Activity After Down 2008 Market WASHINGTON -- A poor year in the national real estate market left the land title industry posting losses in 2008. The continued slowing of real estate sales and refinances is directly related to the reduction of title insurance transactions and revenues, and a continuing rise in loss and loss adjustment expenses for the land title industry in 2008. The industry posted a 2008 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $710.3 million, compared to an operating loss of $87.8 million for 2007. "The land title industry is beginning to see an increase in orders and is anticipating growth based on a growing market for refinance transactions," said Kurt Pfotenhauer, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the American Land Title Industry. In April, the Mortgage Bankers Mortgage Banker A company, individual or institution that originates, sells and services mortgage loans. Notes: Don't confuse a mortgage banker with a mortgage broker. Association's revised its forecast of mortgage originations in 2009, increasing their forecast by over $800 billion. MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration now expects originations to total $2.78 trillion, which would make 2009 the fourth highest originations year on record, behind only 2002, 2003, and 2005. "This is welcome news following a very tough market in 2008," Pfotenhauer continued. The reduction in operating gain, combined with a 46% decrease in net investment gain, was somewhat offset by a significant reduction of income taxes and resulted in a Net Loss for 2008 of $434.2 million, as compared to Net Income of $315.1 million for 2007. Despite the financial struggles of 2008, the land title industry remains in a strong financial position with Admitted Assets of almost $9 billion, including more than $7 billion in Cash and Invested Assets. Also, Statutory Reserves were in excess of $5.3 billion and Statutory Surplus was over $2.0 billion. The 4th Quarter of 2008 marked the 11th consecutive quarter in which title premiums written declined from the prior year's equivalent quarter, indicating that poor markets not only continued through 2008, but were still worsening through year end. Furthermore, each year-over-year quarter's decline was greater than the previous quarter. In 2007, the 3rd Quarter declined more than 15% over the prior year's 3rd Quarter, and the 4thQuarter decline was 22% over the prior year's 3rd Quarter. In 2008, the 1st Quarter declined 26% from the prior year's 1st Quarter; the 2ndQuarter declined almost 28%; the 3rd Quarter more than 30%; and the 4th Quarter declined over 34%. On a state-by-state basis, 28 states plus the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). were down over 30% in the 4th Quarter of 2008 from the prior year's equivalent quarter. Only six states showed increases, with North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , Arkansas and South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). up 53, 37 and 24%, respectively; and Alaska, Vermont and Iowa up less than 15%. The four largest states in terms of written premiums, California, Texas, Florida and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , were down 23, 34, 46 and 47%, respectively. The fifth largest state, New Jersey, was down 30%; the seventh largest, Pennsylvania, down 40%; and the eighth largest, Virginia, was down 31%. Title Insurance Industry Market Share and Statistical Analysis compilations for the 4th Quarter and the full year, 2008 are now available on the ALTA website at www.alta.org/industry/financial.cfm. About ALTA The American Land Title Association The American Land Title Association or ALTA, is a national trade association representing the interests of the abstract of title and title insurance industries. In addition to active members engaged in the title industry, associate members cover a wide range of businesses [R], founded in 1907, is the national trade association and voice of the abstract and land title insurance industry. ALTA[R] members search, review and insure land titles to protect home buyers and mortgage lenders who invest in real estate. ALTA[R] is headquartered in Washington, DC. |
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