FAF
#It's difficult to say, <UNK>.
On the one hand, we have products that we sell that go into Information and Other like property reports and other types of things that are tied to mortgage originations.
So there's a big component that's tied to mortgage originations in the US.
As you know, they're default-related business, which has its own cycle.
We also have a lot of our international businesses in that Information and Other item, which has its own cycle.
And then, finally, we have our data and the Title plan business that's in there.
And we feel like that business is sort of on the early stages of a long-term growth trajectory.
So when you mix all those together, it's difficult to pinpoint what a growth rate is for the overall line item, because there's just so many different drivers.
I don't think it's driven by a size component.
It's actually driven by the necessary compliance to the TRID readiness ---+ it's the readiness of it all and to then have the comfort with the lenders.
So, I don't think it's driven by size.
I just think it's driven by the actual performance of the individual agent.
Our expectation now is through the end of the year.
And it ---+ which is consistent with what we've been saying really at the beginning year is, we booked 6.5 this quarter, we booked 6.5 in Q1 and Q2.
Based on everything we are seeing right now, we expect to book 6.5 in Q4, assuming claims come in in line with our expectations.
And then we'll reevaluate in Q1 of next year.
And I think as we sit here today, we would expect it to start drifting down back to a more normalized rate beginning early next year.
Yes, this quarter, I would say there's really nothing materially in the other OpEx line.
And personnel costs, we did true up our 401(k) with roughly about $5 million.
And that hit our personnel line item.
But we would just consider that sort of normal operating noise.
So there wasn't really anything extraordinary that we would point out.
Yes, pretax.
Well, we are seeing our paid claims fall.
That's happening.
In Q3, our paid claims were about $50 million in Title; Q3 of last year, they were $57 million.
So we are seeing them fall.
If you're looking at kind of a year-to-date basis, our paid claims are flat in Title mainly because we paid two of the largest claims we've ever paid in our history, happened in the first half of the year.
And that ---+ those two totaled $35 million.
So when you back that out, our year-over-year paid claims on a year-to-date basis have fallen significantly.
So we feel like they are going to continue to fall as we go into next year.
As we talked about at our Investor Day earlier this year, we feel like there's about a $50 million cash flow pickup on an annualized basis, just because of the fact that our paid claims are going to continue to fall until they get to that normalized rate.
Well, you characterize it as a mechanical question, so I'll give you the mechanical answer here.
(laughter) So we have a deferred comp plan for certain of our employees that's on our balance sheet.
And when the assets in that deferred comp plan rise, our investment income is going to rise.
And when they fall, our investment income is going to fall.
But there is a corresponding increase or decrease that's basically mirrored within our personnel costs.
So, if you look at Q2 versus Q3, our investment income was down $5 million but our personnel costs were down $5 million.
And there was virtually no change in pretax income.
So it's really just a pass-through.
When you're looking at ---+ if you're looking at year-over-year, our investment income was down $5 million, but our personnel costs were flat.
And that's because there was another thing that was happening where, in Q3 of last year, at Corporate, we had a ---+ roughly a $5 million pension benefit that we took.
And we've had a pension plan that's been frozen for some time.
There was a benefit that we took that we didn't get that benefit of this quarter.
And so that sort of explains the driver there.
Annually, in the ---+ in the Information and Other line item, it's roughly about $80 million a year of revenue on an annual basis.
Typically, there is title insurance involved in those type of transactions ---+ typically.
Well, I would say we definitely increased our incentive comp and our bonus expense this quarter, just because of the higher profits and revenues that we experienced this quarter.
But it's typically more seasonal.
So I don't think you'll see that same level heading into the fourth quarter.
It's starting to happen right now in Houston and North Dakota.
We think that that will continue to be ---+ continue to show weakness going into 2016.
But I should point out that is not a significant part of our commercial business.
Thank you.
