Refi Boom Continues Increased Revenue For Title Industry
April 16, 2004
Washington, DC– A recent study confirmed what members of The American Land Title Association (ALTA), already knew – 2003 was the strongest year for revenues ever due to the continued high level of re-financings and the strong new and resale housing markets.
According to ALTA director of research, Richard McCarthy, “This report proves what our members have been telling us, that in 2003, they were busier than they have been in years. No one could have predicted that consumers would refinance multiple times in six months or a year due to interest rates that continued to spiral downward to 40-year lows.”
Gross revenue (total operating income) for the industry was up 31% over 2002 at $16.56 billion, and the loss ratio (losses as a percentage of total operating income) was 4.0%, as compared to 4.6% for 2002. Even though our loss ratio fell, the industry still paid losses and loss adjustment expenses of $662 million in 2003 as compared to $581 million in 2002. The net gain from operations was $1.025 billion up from $479.1 million in 2002 – a 114% increase. Net income after taxes (which includes investment income) was $1.107 billion in 2003 compared to $558.6 million in 2002.
To see charts from this study, go to the ALTA News section of the ALTA Web site at www.alta.org. For more information on the study, contact Richard McCarthy at rich_mccarthy@alta.org or 1-800-787-2582.
Contact ALTA at 202-296-3671 or communications@alta.org.