Brad Lynch

One day after postponing its third quarter earnings report, title insurer LandAmerica Financial Group, Inc. (LFG: 8.70 +83.16%) said Friday morning it would be acquired by competitor Fidelity National Financial Inc. (FNF: 11.23 +34.49%), the first major merger/acquisition to hit the title insurance side of the business as a result of the nation's housing crisis. The all-stock deal is valued at about $128.4 million, according to a statement by the firms ahead of market open on Friday; LandAm shareholders will receive 0.993 shares of Fidelity National stock.

The combination will create a behemoth title insurer, controlling roughly half of the entire market, and allowing Fidelity National to finally leapfrog past The First American Corp. (FAF: 23.05 +18.14%) in market share. Together, LandAm and Fidelity National represented 46.3 percent of the market during 2007.

The deal comes amid speculation that LandAmerica may have been in trouble, and the particulars of the announced deal make it clear that the rumors were true: FNF subsidiary Chicago Title Insurance Co. will provide a $30 million credit facility to LandAm "as a means of potential additional liquidity," according to a press statement. Advances under the facility are secured by $155 million in par value of auction-rate securities held by LandAm, Fidelity National said.

"The unprecedented credit freeze and depressed real estate market have negatively impacted our business to the point that it has become increasingly difficult for LandAmerica to remain an independent public company," said LandAmerica chairman and CEO Theodore Chandler, Jr.

Fidelity National chairman William Foley, II said in a statement that the merger should bring at least $150 million in operational costs savings between the two firms, but did not specify how many jobs would be lost through the merger. LandAm's Chandler will join Fidelity National's board of directors as a vice chairman when the deal is complete, both companies said.

No expected date was provided for the merger to be completed.

The report is out. Conforming Loan Limits will remain unchanged.

There were many families in the United States that had hopes for an increase in the the conforming loan limit. Those families with current loan pay offs near or higher than $417,000 and higher loan to values, had hopes that the new conforming limits would increase so that their Loan to Values would be accepted in the less stringent conforming guidelines. Word is out, and those families will have to wait until at least 2010 for such expectations. The report came out today as I read on Reuters , the comforming loan limit will remain at $417,000 for 2009.
For more in depth details, click on the Reuters hyper link above.

Condo Seller is HIGHLY HIGHLY MOTIVATED TO SELL!!!!!!!

4517 N. Oconnor Rd. #1135

Additional Pictures from weekend Blog

Condo For Sale Near Dallas Tx

Real Estate Investment Opportunity. Seller will accept best offer quickly!

For more details, see previous Blog or go to www.friscomortgageplanner.blogspot.com

Contact Jarod Farda at 469-450-2723 or email at jfarda@lisd.net

Comments to this Blog will also be replied to.

Did you think 100% financing was gone for good?

One of the major local banks in the cities of Dallas, Frisco, Plano, McKinney, and other surrounding cities has done some risk analysis and decided on a safe target market for 100% financing options. In addition, they have chosen Service First Mortgage as one of the only lenders in North Texas to offer the loans.

Why is it you haven't heard anyother lenders or banks offering this?

Remember, Service First Mortgage was number 11 in top 25 lenders for loans originated in Dallas Fort Worth last year, and with the collapse of a couple of them, we are more near #9 on that list. Loan volume coupled with the high integrity and high level of experience SFMC has a track record for, we are privileged to be in such a situation to be hand picked for this opportunity.

Is there a "mission impossible" type qualification necessary?

NO! Credit Scores as low as 620 may be accepted within this new program. Debt ratios between 41% and 45% are accepted. You DO NOT have to be a first time home buyer. The income can be 140% of AMI (Average Median Income), but they do not have to use the "household income". This means that if the wife and husband make more than the 100% median income, but just one of the borrowers can approve for the home on just their income, we only have to use that income to determine if they are under the median income.

What kind of loan is it?

30 year fixed fully amortized loans

That means that the interest rate will be that of what the market is today for other minimum down payment loans.

Are you trying to come up with a "leg breaking" wow opportunity to deliver to your client after closing on a new home. Buying a home is obviously a big celebration for families. Here is one way that has found success. Try to give something that can be shared and/or something that creates a "Wow!". I go for the Wow!

With the new mortgage payment and cost of moving trucks, even small gifts seem like an opportunity.
A week after celebrating a successful escrow settlement, show up at their new home with a hammer and a set of picture hangers for them. The conversation starts off with how they are just about moved in and it's time to get the pictures up. It quickly evolves to how much they have missed seeing you and how they have someone they want to introduce you to.

Before you leave, ask them what kind of tree they want. In Frisco Texas, or even McKinney, new homes aren't typically sitting in a forrest...if you know what I mean. They are always shocked...what kind of tree??? Explain that it is a custom for you to give them a tree to plant in their yard to commemorate their home purchase. Then, explain it's your effort to give something back for all the paper we went through to help them buy their home.

Other Consultants have a TON of success with hosting their client's first housewarming.

Let me know how it works for you!