We are a Delaware corporation formed in 1970. We and our predecessors have
been engaged in the title business since 1893.
Stewart Information Services Corporation (NYSE-STC) is a global real estate
services company, offering products and services through our direct operations,
network of Stewart Trusted Providers™ and family of companies. From residential
and commercial title insurance and closing and settlement services to specialized
offerings for the mortgage industry, we offer the comprehensive service, deep
expertise and solutions our customers need for any real estate transaction.
At Stewart, we believe in building strong relationships - and these partnerships
are the cornerstone of every closing, every transaction and every deal.
Our international division delivers products and services protecting and promoting
private land ownership worldwide. Currently, our primary international operations
are in Canada, the United Kingdom, Central Europe, Latin America and Australia.
We report our business in three segments: title insurance and related services,
mortgage services and corporate.
Title insurance and related services (title) include the functions of searching,
examining, closing and insuring the condition of the title to real property.
The title segment also includes certain ancillary services provided for Internal
Revenue Code Section 1031 tax-deferred exchanges and home and personal insurance
services.
Examination and closing. The purpose of a title examination is to ascertain
the ownership of the property being transferred, debts that are owed on it and
the scope of the title policy coverage. This involves searching for and examining
documents such as deeds, mortgages, wills, divorce decrees, court judgments,
liens, paving assessments and tax records.
At the closing or “settlement” of a sale transaction, the seller
executes and delivers a deed to the new owner. The buyer typically signs new
mortgage documents. Closing funds are then disbursed to the seller, the prior
lender, real estate brokers, the title company and others. The documents are
then recorded in the public records. A title insurance policy is generally issued
to both the new lender and the owner.
Title insurance policies. Lenders in the United States generally require title
insurance as a condition to making a loan on real estate, including securitized
lending. This is to assure lenders of the priority of their lien position. The
purchasers of the property want insurance to protect against claims that may
arise against the title to the property. The face amount of the policy is normally
the purchase price or the amount of the related loan.
Title insurance is substantially different from other types of insurance. Fire,
auto, health and life insurance protect against future losses and events. In
contrast, title insurance insures against losses from past events and seeks
to protect the public by eliminating covered risks through the examination and
settlement process. In essence, a title insurance policy provides a warranty
to the policyholder that the title to the property is free from defects that
might impair ownership rights. Most other forms of insurance provide protection
for a limited period of time and, hence the policy must be periodically renewed.
Title insurance, however, is issued for a one-time premium and the policy provides
protection for as long as the owner owns the property or has liability in connection
with the property. Also, a title insurance policy does not have a finite contract
term, whereas most other lines of insurance have a definite beginning and ending
date for coverage. Although a title insurance policy provides protection as
long as the owner owns the property being covered, the title insurance company
generally does not have information about which policies are still effective.
Most other lines of insurance receive periodic premium payments and policy renewals
thereby allowing the insurance company to know which policies are effective.
Losses. Losses on policies occur when a title defect is not discovered during
the examination and settlement process. Reasons for losses include forgeries,
misrepresentations, unrecorded or undiscovered liens, the failure to pay off
existing liens, mortgage lending fraud, mishandling or defalcation of settlement
funds, issuance by title agencies of unauthorized coverage and defending policyholders
when covered claims are filed against their interest in the property.
Our mortgage services segment includes a diverse set of complementary products
and services provided to enhance the mortgage and real estate markets. These
services are provided principally through Stewart Lender Services (SLS) and
PropertyInfo® Corporations Stewart Government Services.
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