At Inman Connect Las Vegas, July 30-Aug. 1 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Fathom Realty’s sister company, Verus Title, is beefing up its coverage in three states with parent company Fathom Holdings’ acquisition of Utah-based LW Traveling Title.
Real Estate Mergers & Acquisitions Co. facilitated the deal for both parties, on terms that were not disclosed. Based in American Fork, Traveling Title‘s nine team members also provide services out of offices in St. George, Utah; Colorado Springs, Colorado; and Buena Vista, Virginia.
Marco Fregenal
“Utah, with its thriving real estate market, is a strategic addition to our geographic footprint,” Fathom Holdings CEO Marco Fregenal said in a statement. “With the addition of Traveling Title, Verus Title is poised to leverage its technology tools and exceptional service commitment to deliver unparalleled service in Utah, Colorado, and Virginia. This expansion underscores Fathom’s commitment to providing comprehensive and innovative real estate solutions.”
Paul Yurashevich
Verus Title President Paul Yurashevich said that with the technology tools Verus brings to the table, “we have a winning formula for best-in-class title products in the state.”
TAKE THE INMAN INTEL INDEX SURVEY FOR JUNE
Fathom Holdings generates more than 90 percent of its revenue through Fathom Realty, its real estate brokerage business, but also provides mortgages, title insurance, insurance and technology for agents.
After going public in 2020, Fathom acquired North Carolina-based Verus Title for $1.7 million — $700,000 in cash, and $1 million in Fathom stock.
Fathom’s 2021 $28.88 million acquisition of E4:9 Holdings and two other subsidiaries, Encompass Lending Group and Real Results, furthered the company’s goal of building an end-to-end real estate services platform.
Verus Title locations
Source: Verus Title.
A technology-focused title agency, Verus works with underwriters including Chicago Title, WFG, Fidelity, Old Republic and Stewart and has expanded its licensing footprint to 31 states and Washington, D.C.
Like many of its competitors, Fathom has seen a decline in revenue as elevated mortgage rates slow home sales, but has continued to add agents and trim its losses. Fathom Realty grew to nearly 12,000 agents during the first quarter, and parent company Fathom Holdings trimmed its net loss by 30 percent from Q4, to $5.9 million.
In April, Fathom launched a new joint venture, Verus Title Elite Texas LLC, with individual teams and top-producing Fathom agents throughout Texas. Fathom said it plans to have joint ventures in most of the 30 states where its Verus Title subsidiary operates by the end of 2025.
Fathom Holdings announced in May it had sold its insurance subsidiary, Dagley Insurance, back to founder Nathan Dagley for $15 million, and would the proceeds to strengthen the company’s financial position and support growth initiatives.
Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.
