Title insurers feel the pinch in government shutdown

New York /
Oct.October 07, 2013 05:37 PM

Stocks prices for Fidelity National Financial, the largest title insurer in the U.S., are slipping as the federal government shutdown drags on. The company fell 0.5 percent to $26.19 this afternoon, while the No. 2 seller of title insurance, First American Financial Corp., tumbled 1.2 percent to $24.16.

The hiccups are perhaps linked to closures at the Internal Revenue Service, Social Security Administration and Department of Housing and Urban Development. Federal workers who verify Social Security numbers and provide IRS tax records are a vital link in the approval process, and their absence could cause a delay, Bloomberg News reported.

“Title insurers are sensitive to macroeconomic factors such as employment levels, consumer sentiment, and interest rates and therefore the duration of the shutdown is a vital factor in determining its affect,” Fitch said in a statement. “The longer the government shutdown lasts, the bigger the potential profitability impact to title insurers.”

Would-be buyers attempting to secure mortgages backed by the Federal Housing Administration may also be stuck twiddling their thumbs, Bloomberg said.

Home builders are feeling the pain as well, with D.R. Horton, the country’s largest home builder by revenue, falling 2.8 percent to close at $18.54 today. [Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
Doma CEO Max Simkoff (Doma, iStock)
With $3B IPO, title insurance startup Doma targets new business lines
With $3B IPO, title insurance startup Doma targets new business lines
States Title CEO Max Simkoff and investor Mark Ein. (Keystone Strategy, Getty)
States Title, now Doma, going public in $3B SPAC deal
States Title, now Doma, going public in $3B SPAC deal
Compass CEO Robert Reffkin and KVS Title  CEO David Kanstoroom. (KVS, Getty)
Compass acquires DC-area title firm
Compass acquires DC-area title firm
Fidelity’s Raymond Quirk (iStock)
Title insurers launch new closing tools as homebuying rises
Title insurers launch new closing tools as homebuying rises
Endpoint CEO Scott Martino and First American CEO Dennis Gilmore (iStock)
Title giant First American pumps $40M into digital closing startup
Title giant First American pumps $40M into digital closing startup
OneTitle's Seth Brown (iStock)
OneTitle set out to change the title industry. Now it’s out of business
OneTitle set out to change the title industry. Now it’s out of business
From left: Compass CEO Robert Reffkin, and  Modus' Abbas Guvenilir, Jay Sim and Alex Day (Getty; Modus)
Compass expands into title and escrow with Modus deal
Compass expands into title and escrow with Modus deal
States Title's Max Simkoff and The Real Deal's Hiten Samtani
Title insurance is broken. Here’s how this $623M startup hopes to rebuild it
Title insurance is broken. Here’s how this $623M startup hopes to rebuild it
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...