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FINANCIAL RESULTS
First American's Mortgage Information segment's 2002 operating revenues rose 18 percent from the prior year
to nearly $479.3 million, and income before income taxes and minority interests increased 13 percent to almost
$146.9 million.
A robust real estate market and a surge in refinancings prompted by lowered rates, along with operational efficiency
measures, helped to create continued earnings progress for these companies. Although costs were incurred as we
invested further in the development of customer relationships in 2002, these relationships
are positioned to bring added revenue in 2003.
SEGMENT ACTIVITY
This segment's companies help First American continue to win recognition as the industry
leader in offering a complete line of products to mortgage loan originators and servicers.
A strong focus on the quality of our products was apparent throughout this segment's
companies in 2002. This focus allows us to constantly improve our products and services
and, in turn, increase our market share. While the active real estate market brought an
impressive volume of business to this group, the quality and turnaround times provided to
our customers did not waver.
Two prominent companies within the Mortgage Information segment, First American
Real Estate Tax Service and First American Flood Data Services, continue to be recognized by the industry
for their ability to provide superior service. This level of performance has been rewarded with commitments for
significant volumes of business in the year 2003. It is likely that this new business will vault our tax service company
into the number-one market share position for the first time in its history.
First American Default Management Solutions, which assists lenders and homeowners in preventing and processing
foreclosures, now offers the only integrated technology platform in its industry. The platform provides a direct
connection to lenders and is designed to increase efficiency, reduce expenses, and solidify
customer relationships. It is expected to help bring further increases in market share to this group.
 First American Nationwide Documents, the mortgage document preparation firm that
experienced losses in 2001, rebounded strongly and profitably in 2002, as delivery process
refinement increased efficiency.
Companies throughout this business segment continued the use of progressive, scalable,
proprietary FAST technology. These applications are designed to create a completely
integrated system for the electronic ordering, routing, processing, and delivery of products
and services for customers using any platform. The system helps First American, the industry
leader in providing a complete line of mortgage-related closing services, to realize operating efficiencies and perorder
cost reductions.
MARKET GROWTH
Most of our companies within this business segment continue to hold leadership positions in their respective
markets. They are first in flood data services, with an approximate 35 percent market share in an industry of more
than 100 companies nationwide; first in most areas of default management; and second in real estate tax services.
The continued focus on the cultivation and maintenance of high-quality client relationships by the companies in this
business segment should help to keep business levels steady during market fluctuations.
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