Index First American Profile Financial Highlights Letter to Stockholders First American's Strength in Numbers Title Information and Services Real Estate Information and Services Consumer Information and Services Management's Discussion and Analysis Selected Financial Data Common Stock Prices and Dividends Quarterly Financial Data Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Accountants Officers Board of Directors Primary Companies Stockholder Information Back Cover

consumer information and services

Consumer Information and Services operations, which are less sensitive to interest-rate changes and fluctuations in the nation’s real estate markets than the Corporation’s other businesses, provide strategic diversification of First American’s revenues.

Consumer operations posted operating revenues of $290.2 million in 2001, an increase of 15 percent, and earned $33 million before income taxes and minority interests, 6 percent less than in 2000. Profits were partially affected by costs involved in the elimination of our lender-placed insurance business and by expansion costs and higher claims in the segment’s home warranty division.

During 2001, this group continued First American’s diversification activities by growing the data-based operations that provide credit, background screening, and other information about consumers, as well as those businesses that directly serve consumers.

 CONSUMER INFORMATION

First American has continued its assembly of products directed to the auto-lending market, much as the Corporation previously built its successful group of mortgage information services. Our ultimate goal is to have First American involved in every transaction that flows through the finance and insurance offices of automotive dealerships.

Auto Industry Focus

In early 2002, First American introduced TitleGuard, the first title insurance protection for used-car buyers. Working with Experian Automotive, this product, which insures against unreported Department of Motor Vehicles title defects, will be sold to car dealers and consumers. Its market potential is high, with more than 40 million used vehicles sold in the nation each year.



The Consumer Information group benefited from two acquisitions during 2001. First American CMSI is the leading provider of loan origination and decisioning application system technology to some of the world’s largest auto lenders. Its CreditOnline™ Network processes more than 600,000 transactions a month and offers us cross-selling opportunities, as many auto lenders also provide home-equity and mortgage-loan services. The acquisition of e-fin, LLC, brought the group a strong online financing services presence in the southern U.S. and will increase Credit Online’s exposure to auto dealers there. Strategic agreements with industry leaders that include the Dealer Services Group of Automatic Data Processing, Inc. (ADP), The Reynolds and Reynolds Company, and Universal Computer Systems, Inc., also now provide First American with access to the majority of the new-car franchises in the nation. Market potential is high for us here, with more than 16 million new cars sold in the U.S. each year.

Credit reporting activities were robust in 2001 as the First American CREDCO Consumer Products Division processed more than 12 million credit transactions, and Teletrack remained the dominant provider of subprime consumer credit information.

First American Fastrac Systems, Inc. remains the nation’s leading automotive vehicle insurance-tracking, and title storage and administration company, providing insurance data on millions of autos nationwide. VINtek, Inc. continues to offer online data fulfillment services to auto e-retailers, finance companies, and state motor vehicle agencies.

A group outside of the auto market, First American Membership Services, markets credit reports, credit monitoring, and other services to consumers through memberships generated by mortgage-servicing relationships. This group’s business multiplied threefold in 2001.

 SCREENING TECHNOLOGIES

HireCheck, Inc., First American’s preemployment screening company, felt the effects of the recession last year as the nation’s unemployment rate rose to 4.8 percent. The company incorporated aggressive sales strategies to position itself for a market rebound. It consolidated earlier acquisitions Pretiem and Factual Business Information into HireCheck and added services to provide a single resource for employers.

In 2001, First American acquired Substance Abuse Management, Inc., the leader in drugtesting management that performed more than 1 million tests that year. Its sales force was merged with HireCheck’s to take advantage of great market potential—an estimated 75 percent of Fortune 1000 companies now conduct pre-employment drug testing, while employee background verification services are used by 85 percent.

In January 2002, the Company acquired American Driving Records, Inc., positioning First American as one of three backgroundscreening companies with direct access to most state motor vehicle records. The company delivers 10 million motor vehicle reports annually to insurance agents and employers.

First American Registry, the nation’s largest resource for resident-screening information and services, improved its performance in 2001. This company provides property managers and owners with a comprehensive package of information services drawn from sources nationwide, including its proprietary database of more than 33 million landlord/tenant eviction court records.