Homeland Security Company Expands into Title Space
August 2, 2011
Homeland Security Capital Corp. (HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief and electronic security solutions to government and commercial customers, added a second acquisition as part of its entry into the mortgage and settlement services industry by completing the acquisition Timios Inc.
The acquisition of Timios, Inc., a technologically advanced, paperless provider of title insurance and escrow services, adds additional core services to Fiducia Real Estate Solutions Inc. (Fiducia), a recently formed subsidiary under HOMS. Timios is a licensed title insurance and escrow agent operating in 38 states offering title and escrow services for mortgage origination refinance, reverse mortgage, real estate owned and deed-in-lieu transactions, listing some of the largest lenders and servicers nationwide as clients. Timios is headquartered in Westlake Village, Calif., and has offices in Plano, Texas, as well as satellite offices in four other states.
The initial purchase price is $1.15 million, subject to working capital adjustments, plus contingency payments of up to $1.35 million payable over the next 12 months.
"Completion of this transaction and the Default Servicing transaction we previously announced represent a big step forward in immediately expanding our presence nationwide in this new line of business." said Thomas McMillen, HOMS chairman and CEO. "The extensive experience of both management teams increases our ability to reach new customers and provide current customers with enhanced default and title products and services."
Trevor Stoffer, president and CEO of Timios, launched the company in the fall of 2008, initially targeting national and regional lenders’ refinance business. The founding management team consisted of several individuals from Lenders First Choice. Timios utilizes a centralized processing and fulfillment model with Gators as its company-wide title production system. Combined with direct integrations with its lender customers, Stoffer said the model operates in a paperless environment and does not rely on the typical brick-and-mortar operations.
"Timios has come a long way in a short period of time,” Timios said. “Our growth in volume and new clients through difficult times is a testament to what we believe to be our high level of service and great partnerships. Our new partnership with Homeland Security will allow us to extend our service to more clients, expand our product offerings, and drive increasing value to our customers and investors."
In 2010, DJSP Enterprises acquired Timios for $1.5 million in cash, 200,000 ordinary shares of DJSP Enterprises, and up to 100,000 ordinary shares of DJSP Enterprises to be earned upon achievement of defined performance metrics. However, DJSP voluntarily delisted from Nasdaq after failing to meet the minimum trading requirements of $1 per share in December. DJSP was the back-office processing firm of Law Offices of David J. Stern.