There is no end in sight to the Compass title expansion
Real estate brokerage compass announced on Wednesday that it has signed an agreement to acquire a title insurance company based in the Denver area First Alliance Title LLC, fourth title insurance purchase last year and second this month.
According to Compass, the transaction should be completed before the end of the year. The financial details of the transaction will not be disclosed.
First Alliance Title was founded in 2014 by real estate professionals and currently has three locations in the Denver area.
This latest acquisition extends Compass title and escrow services to California, Colorado, Florida, Washington, Maryland, Virginia, Washington, DC and Texas.
Compass began taking over the Seattle-based title and escrow software start-up into the title and fiduciary space last October mode. A few months later, the Robert Reffkin-led brokerage firm struck a deal with the Washington DC-based company KVS title.
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The brokerage firm’s most recent expansion came just over a week ago when it acquired the Dallas-based title insurance company LegacyTexas title.
Compass’ expansion into title and fiduciary services was not without its problems. In March 2021, the Washington State Insurance Commissioner filed an order to revoke Modus’s insurance license for allegedly violating a real estate ordinance that prevented property and trust companies from doing any form of business with the property insurer direct or indirect payments, fees or rewards.
In June, the Washington State Insurance Commissioner fined Modus at least $ 15,000 for violating regulations, including those related to incentives and other non-title services offered to real estate agents. The company’s license is not revoked.
Compass doesn’t shy away from its goal of expanding into every part of the real estate transaction, including ancillary services like mortgage, concierge, bridge loans, and property and fiduciary operations. The brokerage firm also announced in August that it had a mortgage joint venture with Guaranteed price, named OriginPoint.
As more and more brokers like Compass enter the title insurance industry, the traditional “Big Four” are becoming title insurers Fidelity National Financial, First American Finance Corp., National title of the Old Republic and Stewart title have made their own acquisitions to stay one step ahead of the competition.