First American Title - Do They See Trouble Coming

In the law suit filed by Bank of America against First American Title and its sister firm United General Title Insurance this month, BofA is looking to be paid its charge-off amount for title insurance issues. But rather than pay the claims on the 4,500 properties claimed by BofA, First American and United General denied 2,200 alleged claims and have not acted on another 2,300 claims.

Meanwhile, First American Corporation announced its desire to separate its two operating divisions, the Financial Services Company and the Information Solutions Company, into two separate publically traded entities. The Financial Services Company would hold the title insurance companies (with all the liability) and the Information Solutions Company  would have  the services like CoreLogic, without the title insurance liability. HUMMM?