CoreLogic (formerly First American CoreLogic) is an information provider to the core. The data company provides mortgage and real-estate information, as well as analytics and related services. Clients include financial institutions, mortgage companies, and other corporations and government agencies that use CoreLogics services, designed to help identify risk and make informed business decisions. Its multiple databases include real property and mortgage information, judgments and liens, parcel and geospatial data, criminal background records, eviction information, non-prime lending records, and credit and tax information. Data comes from public sources, customers, and third-party data aggregators.
In 2011 CoreLogic reorganized into three operating segments: Data & Analytics, Mortgage Origination Services, and Default Services. (It closed its Marketing Services business that year.) The Data & Analytics segment produces and analyzes consumer, property, and mortgage data, while the Mortgage Origination segment provides a variety of loan and credit services. Default Services includes offerings that help clients manage risk and mitigate loss. Major customer Wells Fargo accounts for more than 10% of the company's total revenues.
CoreLogic is heavily dependent on a small group of customers (its top 10 customers accounted for about 40% of 2011 revenues) and is vulnerable to economic and credit cycles. The troubled company reported a $66.5 million annual loss in 2011, its second straight year of losses. It underwent cost-cutting efforts to save $20 million that year, making workforce reductions and outsourcing certain IT and business process jobs, while also making cuts in spending. Despite these tactics, it continued to suffer in response to a challenging real estate market and a heavy debt load.
As part of its reorganization strategy to streamline operations and focus on its data offerings, it has been busy shedding non-core businesses. In 2011 it shut down LeadClick, its marketing services business. Also that year it reported several business as discontinued operations, including its consumer credit monitoring services, transportation services (comprised of American Driving Records and CompuNet Credit Services), and its appraisal management company. In 2010 CoreLogic sold its money-losing First Advantage employer services and litigation support business to private equity firm Symphony Technology Group for some $265 million in cash.
CoreLogic in 2011 announced plans to explore strategic opportunities, including a possible sale. However, in 2012 it reported that it concluded its review and would continue to focus on streamlining the business in lieu of a sale. It plans to further cut $60 million in costs and asserts that such efforts, combined with an improving market, will increase shareholder value.
The company was formed in 2007 when First American Real Estate Solutions merged with CoreLogic Systems, a provider of residential mortgage risk management and fraud protection technology and services. The firm took its current shape when First American Core Logic reorganized in 2010, spinning off its financial data business, which was renamed CoreLogic. Its title insurance business, meanwhile, became First American Financial. First American retains an 8% stake in CoreLogic. – less