Weekly Real Estate News
First American Financial Corporation reported $2.085 billion in third-quarter revenue, a 5% increase from a year earlier, as commercial title activity continued to outpace a subdued residential market.
The Santa Ana, California-based title and settlement services company released its results October 21 after the market close. Commercial revenue reached $297 million, up 21% year over year. But net income declined to $177 million, or $1.72 per diluted share, from $189.6 million, or $1.84 per share, in the third quarter of 2025.
Commercial growth contrasts with weaker title order volumes
First American’s U.S. direct title operations closed 134,900 orders during the quarter, compared with 141,800 a year earlier, a decrease of approximately 4.9%. Orders opened fell to 175,600 from 191,300, an 8.2% decline.
Investment income in the Title Insurance and Services segment rose 11% to $169 million. The segment’s pretax margin was 12.4%, down from 12.9% a year earlier. The company reported adjusted earnings of $1.78 per diluted share, compared with $1.70 a year ago.
Management warns residential weakness may persist
Chief Executive Mark Seaton said growth in the commercial business and higher investment income supported earnings. He also pointed to rising mortgage rates as a reason to expect a prolonged period of lower residential origination activity.
The company is investing in AI-based title and settlement platforms while pursuing efficiencies and customer relationships in anticipation of an eventual housing-market recovery. Those initiatives are forward-looking; the company has not established that they will offset near-term residential weakness.
First American also increased its common-stock dividend by 11% to an annualized $2.44 per share. Operating cash flow was $238 million, down from $273 million a year earlier.
The results underscore how commercial transactions and investment income can support title insurers even when residential purchase and refinance volumes remain pressured.
Primary source: First American Financial Corporation third-quarter 2026 earnings release, October 21, 2026.
