The First American Financial Corporation is the nation's leading business information provider. Its services are primarily real estate-related - providing a full menu of products and services that mortgage lenders need to originate, close and service loans. But the company also has a growing consumer information and services division. The evolution from a one-county abstract company to a diversified, international information services provider is truly a success story.

The Corporation traces its roots to 1889, when Orange County, California, a very rural area at the time, split off from the county of Los Angeles. Two firms opened to handle title matters in the brand-new county. In 1894, C.E. Parker, a local businessman, succeeded in merging the two competitors into a single entity. He was named president of the resulting company - Orange County Title Company - the immediate predecessor to today's First American Title Insurance Company.

During its first 70 years, the company's growth paralleled that of Orange County - modest but steady. It earned a reputation for diligence, thoroughness and friendly, personal service. In 1924, it became one of the first abstract companies in the state to qualify to issue policies of title insurance. These policies are insured statements of the condition of ownership of real property. Generally, policyholders are purchasers of real property or lenders whose security is real property. In the event of a lawsuit questioning the terms of a title policy, the title insurance company provides legal defense for the policyholder and, if the suit is lost, pays all valid claims or losses up to the amount of the policy.

Donald Parker Kennedy, grandson of the founder, joined the company after finishing law school in 1948. He soon realized that the company needed to expand out of the boundaries of the county in order to survive. In 1957, the board of directors authorized an expansion plan with the intent of becoming a powerhouse in the Southern California market. However, the decision to provide services where its existing customers had operations soon led the company far beyond California's borders. In 1963, D.P. Kennedy was named president of the company, taking over for his uncle, George Parker. By this time, the company had changed its name to First American and was operating in four states. And, in 1964, the company had its initial public offering on the over-the-counter market.

In 1968, the company was restructured into a general holding company, The First American Financial Corporation, which conducted its title operations through First American Title Insurance Company and its subsidiaries, and a trust business through First American Trust Company. First American Title continued growing. Existing title and abstract companies were purchased. New offices were established. Agency contracts were negotiated. In a well-planned and executed expansion program, First American Title built an organization that, by 1982, served every region of the country.

When the decision to expand was made, an important part of the company's corporate culture was also put into place. Management believed that, because the real estate business is run differently in every region, most decisions should be made at the local level. This decentralization continues today - from region to region and from division to division. This managerial autonomy has led to expedient decision making and a significant decrease in red tape. It also allows customers both the security of working with a large company and the convenience of working with a local company.

The company's philosophy of providing the services its customers need - and providing them where and how they need them - has led the company to expand in both reach and scope. Title services are now available throughout the United States and in 10 additional countries, and the company introduced the first standardized international title policy in early 1999. Also within the title insurance segment are groups that specialize in large, complex, commercial and industrial transactions; in centralized services for lenders providing home equity loans and refinancings; in safe, timely tax-deferred exchanges; and in the complexities of subdivision housing and development. But by far the biggest changes to the company have been a direct result of its decision to provide non-title services to its customers, and the resulting developments.

In 1984, First American introduced a home warranty subsidiary. One year later, it started a real estate tax service, which monitors, on behalf of the lender, whether the borrower is paying property taxes. In early 1990, First American acquired a credit reporting company, which merges information from the three credit repositories, and a flood certification company, which provides immediate certification of whether or not a given property is in a federal flood zone and if, therefore, flood insurance is required.

The tax, credit and flood companies were merged in 1991 into a new subsidiary, First American Real Estate Information Services, Inc. This subsidiary has grown aggressively through acquisitions, and now provides a wide array of mortgage information services, including credit reports, document preparation, field services, flood compliance, tax services, loss mitigation and servicing software systems. This subsidiary also includes database products and services, such as property information, automated title plants, document imaging, appraisals, and software for mortgage brokers.

The company's consumer products and services form yet another growing segment. These non-real estate-related businesses include home warranty, resident screening, automotive and consumer credit reporting, insurance tracking services, lender-placed hazard and flood insurance, property and casualty insurance, pre-employment screening, trust services, investment services and a thrift.

On December 3, 1993, the company moved its shares onto the prestigious New York Stock Exchange after 29 years of trading on the NASDAQ and over-the-counter markets.

Now well into its second century, First American is still based in Santa Ana, although it recently relocated to its new home office. Its founding family continues to direct operations. Its reputation for excellent work and conscientious service is not only intact, but has been enhanced. And it continues to grow and diversify through its First American Family of Companies.