FAF
#Fourth quarter of last year in the title segment, we had kind of a reversal in 401(k) match.
Fourth quarter of this year we are booking at basically a higher rate just based on the improved margins of the Company.
Net net that is about a $7 million swing from Q4 of last year to Q4 of this year so that is one of the primary drivers.
I would think the run rate would be a little bit less.
I mean our 401(k) match was about $8 million in Q4.
I think it would be $1 million or $2 million less than that going forward.
It is hard to say.
I mean typically if you look at our closed orders in commercial, they are flat and what really drives the growth in our commercial revenue and premiums is really the growth in our average fees per file.
This year our commercial revenue for the full-year grew 17% over last year.
Almost all of that was driven by higher average fees per file.
So it is just difficult to say.
But as <UNK> mentioned before, we do think that will moderate in 2016.
No, you know, it is funny.
We saw something similar in the winter months last year and when you look at the first seven business days in February, our purchase orders are down 2% versus last February.
So our growth rates sort of have moderated here in the winter but they did the same thing last year.
There is nothing explicitly that we could point to geographically or otherwise that would explain it.
<UNK>, I would say that we are optimistic going into the spring buying season that we will see continued momentum in purchase growth like we saw in 2015.
Pretty happy with where we are right now.
We've got a 10.2 for the year, right in line with what we expected and that is based on the current market environment.
So kind of how we look at it, if the market improves from a purchase perspective and commercial continues to grow and we get the benefit from refinance, we are going to look for continued operating leverage in this business so we will continue to drive improved operating leverage going forward if the markets continue to improve.
You know, typically the agent business lagged our direct business by about a quarter.
I mean it is not perfect but that is kind of a rule of thumb.
The direct business in Q4 we thought there was going to be an impact, there really wasn't an impact because of TRID.
It sort of caught up by the end of the quarter as we mentioned in our remarks.
So looking in Q1, we wouldn't expect a material impact because of that lag on our agency revenue in Q1 because of TRID.
It is a combination.
I mean refi and commercial there is a lot more refi in commercial than there is in residential simply because you have got the five- and seven-year loan.
You don't have 30-year mortgages out there.
So we get paid about the same though for a purchase in a refi so the nature of the transaction on the commercial side whether it is a purchase or refi, it is not as important to us as it is on the residential side where we get paid more than twice as much for a purchase than refi.
And so for a while we used to track purchase and refi commercial orders and then we just stopped doing that because the refi wasn't a significant driver so I wouldn't say it is a material measure for us.
I think what we are going to see in 2016, we have started to see it already and that is weakness in the Houston market, both in residential and commercial and that is the primary residential market that we think we will see weakness from the energy issue.
Sure, on inflow and other, there is a few positives and a few negatives that really drove that.
On the positive side, we sell a lot of search products and uninsured products just in connection with the settlement process.
That business was up 11%, very similar to the growth trend that we saw on our premiums.
Our data businesses within info and other were also up 5% so those are the positive.
On the negative side, we talked about the fact that our default business continued to decline.
It was down 21% and also our international business we suffered I guess from foreign currency translation adjustments.
So our international business on a constant currency basis was basically flat but because the US dollar strengthened so much during the period, our international revenue in that line item was actually down 10%.
So those are some things that were ---+ there are ups and downs but overall the info and other was down 2% for the quarter.
Yes, we are comfortable with the product suite and I think the trends will continue, we will continue to see softness in the default offerings and I think we will continue to see opportunities for growth in the information products and some of the data products.
And I think the commercial trends will continue.
So again, feel comfortable with them and I think the trends will continue into 2016.
