One of the country’s biggest title insurers is doubling down on digital closings.
First American Financial Corp. said it’s investing $40 million into Endpoint, a title and escrow startup it launched last year. That’s on top of the $30 million it already pumped into Endpoint to develop the standalone company, which bills itself as a mobile-first service.
Endpoint, based in El Segundo, California, said the new funding will allow it to accelerate hiring and expansion, both of new products and to new markets. Endpoint’s escrow automation replaces the traditional exchange of papers at real estate closings. So far, it operates in Seattle, Southern California and Arizona.
First American is one of the so-called “Big Four” insurers that dominate the title industry. Founded in 1889, it generated $6.2 billion in 2019 revenue.
In a statement, Endpoint CEO Scott Martino said buyers and sellers today “expect a certain level of convenience and speed.”
Earlier this year, First American bought housing tech company Docutech for $350 million. At the time, the title insurance company said the deal brings it closer to completely digital mortgages and closings.
In recent years, investors have backed other startups aiming to streamline the antiquated closing process. States Title, a four-year-old startup in San Francisco, raised $123 million last year to digitize title, mortgage and escrow services. And Spruce, a New York startup founded in 2016, raised $29 million Series B in May.
First American developed Endpoint with BCG Digital Ventures, the corporate venture arm of Boston Consulting Group.