First American Financial (FAF) risk factors, FY2024 10-K

First American Financial's FY2024 10-K, filed Feb 21, 2025, lists 24 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
240 groups
Section length
7k wordsItem 1A

First American Financial's biggest risks in the FY2024 10-K

  • First American Financial Corp is heavily exposed to real estate market fluctuations, interest rate changes, and economic conditions.
  • Title insurance operations face extensive state regulation, reliance on independent title agents, and investment portfolio risks.

The risks most specific to First American Financial

  • Conditions in the real estate market generally impact the demand for a substantial portion of the Company’s products and services

    Demand for the company's products and services decreases when real estate transaction volume falls due to high mortgage interest rates or unfavorable economic conditions.

  • The Company’s home warranty business has been and may be impacted by increases in the frequency and severity of weather events. Home warranty claims, including those pertaining to HVAC systems, tend to rise as temperatures become extreme, especially in geographies where extreme temperatures are infrequent

    The company's home warranty business faces increased claims from extreme temperatures affecting HVAC systems, while title insurance reinsurance costs could rise following catastrophe events.

  • Changes in the Company’s relationships with large mortgage lenders or government–sponsored enterprises could adversely affect the Company

    Changes in business relationships with large mortgage lenders or government-sponsored enterprises could significantly reduce the volume of business derived from them.

  • The issuance of the Company’s title insurance policies and related activities by independent title agents could adversely affect the Company

    Independent title agents issue a significant portion of title insurance policies, and their failure to fulfill fiduciary or contractual obligations could harm the company.

  • The Company’s use of a global workforce involves risks that could adversely affect the Company

    Utilizing a global workforce in countries like India and the Philippines exposes the company to risks of political instability, natural disasters, and health crises.

  • Regulation of title insurance rates could adversely affect the Company

    State-level regulation of title insurance rates requires regulatory approval prior to implementing rate changes, which can restrict pricing flexibility.

  • Failures at financial institutions at which the Company deposits funds could adversely affect the Company

    Failures at financial institutions where the company deposits substantial third-party escrow and investor funds could adversely affect the company.

  • A reduction in the deposits at the Company’s federal savings bank subsidiary could require the Company to borrow funds to maintain liquidity

    A reduction in real estate transactions causes deposit declines at the company's federal savings bank subsidiary, which could require the company to borrow funds for liquidity.

All 24 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The Company’s risk management framework could prove inadequate, which could adversely affect the Company
  2. 02Conditions in the real estate market generally impact the demand for a substantial portion of the Company’s products and services
  3. 03when economic conditions are unfavorable, including during periods of high unemployment
  4. 04Unfavorable economic conditions adversely affect the Company
  5. 05The Company’s use of models involves risks and uncertainties that could adversely affect the Company
  6. 06Severe weather conditions, health crises, terrorist attacks and other catastrophe events could adversely affect the Company
  7. 07The Company’s home warranty business has been and may be impacted by increases in the frequency and severity of weather events. Home warranty claims, including those pertaining to HVAC systems, tend to rise as temperatures become extreme, especially in geographies where extreme temperatures are infrequent
  8. 08The Company may find it difficult to acquire necessary data
  9. 09Changes in the Company’s relationships with large mortgage lenders or government–sponsored enterprises could adversely affect the Company
  10. 10The issuance of the Company’s title insurance policies and related activities by independent title agents could adversely affect the Company
  11. 11Errors and fraud involving the transfer of funds may adversely affect the Company
  12. 12The Company’s failure to recruit and retain qualified employees may adversely affect the business
  13. 13The Company’s use of a global workforce involves risks that could adversely affect the Company
  14. 14Acquisitions may have an adverse effect on our business
  15. 15LEGAL AND COMPLIANCE RISK FACTORS
  16. 16Regulation of title insurance rates could adversely affect the Company
  17. 17Failures at financial institutions at which the Company deposits funds could adversely affect the Company
  18. 18Unfavorable economic or other conditions could cause the Company to write off a portion of its goodwill and other intangible assets
  19. 19The Company’s investment portfolio is subject to certain risks and could experience losses
  20. 20The Company’s venture investment portfolio is volatile and subject to certain risks and could experience losses
  21. 21The Company's ability to fulfill parent company obligations and/or pay dividends may be limited
  22. 22A reduction in the deposits at the Company’s federal savings bank subsidiary could require the Company to borrow funds to maintain liquidity
  23. 23the Company’s board of directors may without stockholder approval issue preferred shares and determine their rights and terms, including voting rights, or adopt a stockholder rights plan
  24. 24The Company may be susceptible to claims of infringement and may not be able to adequately protect its intellectual property

Other First American Financial 10-Ks

  • FY2025 10-K risk factors
    23 risks1 dropped4 reworded

    Real-estate weakness now expressly includes low affordability, unfavorable conditions and unemployment, potentially reducing title earnings and increasing claims.

    Filed Feb 18, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.