In Brief: First American Buying A Field Inspection Firm

As mortgage lenders continue to consolidate, companies that provide services to them are following suit.

The latest example is the merger of two field inspection companies - firms that mortgage servicers hire to keep an eye on homes after foreclosure and before resale.

First American Financial Corp., a provider of real estate financial and information services, agreed last week to pay $7 million for Ward Associates. The Lakewood, N.J., company conducts 110,000 inspections a month and generates about $12 million of annual revenues.

First American said it will combine Ward Associates with a similar company, based in Dallas, that it acquired last year from Lomas Financial Corp. The units will operate under the banner of First American Field Services and will be based in Lakewood.

The size of the former Lomas unit could not be learned, but Thomas A. Klemens, First American's chief financial officer, said it is somewhat smaller than Ward. He said combining the operations will help them achieve the cost savings that are needed in the contracting mortgage industry.

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