On Aug. 1, North American Title Company (NATC) completed its acquisition of Realstar Title, based in Lakeville, Minnesota. This acquisition expands NATC’s footprint to 13 branch offices throughout Minnesota.
At NATC, we are not just intent on growing market share by enlarging our footprint, but rather focused on joining hands with truly superior companies like Realstar who are serving customers with the passion and excellence that coincide with our values. Combining the expertise and professionalism of the Realstar and NATC teams in Minnesota with the stability and resources of NATC’s national team will provide all of our customers with a greater range of services and expertise. We know you may have questions about this new combined venture and invite you to peruse the FAQs below, or contact your Realstar representative for more in-depth information.
- Who is NATG?
North American Title Group, Inc. (NATG) and its subsidiaries combined are one of the largest real estate settlement organizations in the United States, with annual revenues (net of underwriting expense) in fiscal 2015 (Nov. 30, 2015) of approximately $229 million. Handling both residential and commercial transactions, our extensive network provides or is able to coordinate settlement services spanning across all 50 states.
North American Title Company (NATC), in business since 1953, provides real estate settlement services. With annual revenues (net of underwriting expense) in fiscal 2015 (Nov. 30, 2015) of approximately $194 million, NATC is among the leading independent title agencies in the United States. Since NATC is not a direct operation of any one national title insurance underwriter, NATC has the unique ability to be an agent for all major national title insurance underwriters, including its affiliate underwriter, North American Title Insurance Company. This ensures that NATC customers receive the best title insurance products available throughout the entire industry at the best possible rates, granting NATC a truly competitive advantage. With more than 130 offices across the country, NATC offers a depth and breadth of local expertise and knowledge in many of the premier real estate markets.
North American Title Insurance Company (NATIC), NATG’s underwriter, operates in 39 states and the District of Columbia and is continuing to expand. Among the nation’s largest title underwriters, NATIC generated more than $202 million in agency premiums in 2015 and maintains a policyholder surplus of more than $57 million as of Dec. 31, 2015. Recognized as having one of “the best financial conditions amongst its peers” by the Kroll Bond Ratings Agency, NATIC also earned a rating of “A Prime Unsurpassed” from Demotech, Inc. and is rated B++ (Good) by A.M. Best Company. NATIC has earned the reputation as the “underwriter next door” because decision makers are easy to reach and processes are quick and straightforward. NATIC has a one-hour underwriting response guarantee that is unparalleled in the industry, and possesses the attributes most essential to its agents’ success – financial responsibility and white-glove service.
North American Title is a subsidiary of Lennar Corporation, a diversified real estate and financial services organization listed on the New York Stock Exchange (NYSE: LEN) with over $14.4 billion in assets as of fiscal year-end Nov. 30, 2015. Lennar is one of the nation’s largest real estate developers and homebuilders.
- What is the strategy behind the acquisition and how will customers benefit?
Realstar offices are a perfect complement to North American Title Company, currently serving the Northern metro area and north up to Isanti and Pine City, whereas NATC serves the Southern metro down to Albert Lea and Austin. Combining the companies gives NATC the ability to service a larger portion of the Minnesota market. The caliber and professionalism of the Realstar team brings added expertise to the North American Title Staff. On the other hand, NATC brings compliance expertise, economies of scale and access to multiple underwriters.
One of the primary challenges facing title companies is the increasingly strict legal and regulatory requirements applicable to the title and settlement services industry, including compliance with ALTA's Best Practices that were adopted in response to this new, stricter environment.NATC has made significant investments in implementing policies and procedures to make sure we meet and exceed these new compliance standards. As NATC begins to serve an even larger portion of the state with this acquisition, our customers statewide can enjoy the confidence of working with a company that is focused on and committed to ensuring compliance with these requirements.
- What will the combined company be named and where will it be headquartered?
The combined company will be named North American Title Company. It is headquartered in Miami, Florida. However, NATC has filed an assumed name certificate to use the “Realstar Title” name, and the branches acquired from Realstar will continue to operate under that name for a brief transition period following the closing of the acquisition.
- How will the customer benefit?
The combined company will give our customers access to closing and title services over a much larger area of the state. In addition, NATG’s access to a wide range of underwriters, including its own underwriter North American Title Insurance Company, provides our customers with the greatest range of options for each of their transactions.
- Will our rates change?
- Will my branch close?
None of the Realstar branches will close. However the NATC Maple Grove branch will be consolidated with the Realstar Blaine location and the NATC Lakeville satellite office will merge with the Lakeville Realstar office.
- Will my Escrow Officer change?
- Will my title associate change?
- Who do we contact at the company going forward?
Contacts will not change. Realstar customers will continue to work with the same title and closing professionals they have come to know and trust.