Greetings, and welcome to the First American Financial Corporation third quarter earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. A copy of today's press release is available on First American's website at www.firstam.com/investor. Please note that the call is being recorded and will be available for replay from the company's investor website and for a short time by dialing 877-660-6853 or 201-612-7415 and enter the conference ID 13741673. We will now turn the call over to Craig Barberio, Vice President, Investor Relations, to make an introductory statement. Good morning, everyone, and welcome to First American's Earnings Conference Call for the Q3 of 2023. Joining us today on the call will be our Chief Executive Officer, Ken DeGiorgio, and Mark Seaton, Executive Vice President and Chief Financial Officer. Some of the statements made today may contain forward-looking statements that do not reflect or relate strictly to historical or current fact. These forward-looking statements speak only as of the date they are made, and the company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. For more information on these risks and uncertainties, please refer to this morning's earnings release and the risk factors discussed in our Form 10-K and subsequent SEC filings. Our presentation today contains certain non-GAAP financial measures that we believe provide additional insight into the operational efficiency and performance of the company relative to earlier periods and relative to the company's competitors. For more details on these non-GAAP financial measures, including presentation with and reconciliation to the most comparable GAAP financials, please refer to this morning's earnings release, which is available on our website at www.firstam.com. I would now like to turn the call over to Ken DeGiorgio. Thank you, Craig. The rapid increase in interest rates to levels not seen in many years continues to produce challenging market conditions. With housing affordability currently at its lowest point in over three decades, existing home sales this year have declined to the slowest annual pace since the global financial crisis. Moreover, sales volumes in the commercial market have reverted to pandemic low levels and are down approximately 50% from the peak year of 2021. Despite these historically difficult conditions, our continued focus on expense management and strong growth in net investment income enabled us to deliver a pre-tax title margin of 12% on an adjusted basis. On a consolidated basis, we generated adjusted earnings of $1.22 per diluted share. Our residential purchase business continues to reflect these market headwinds, but appears to have stabilized at trough levels. For the first 3 weeks in October, open purchase orders are down 7% compared with September, which is consistent with normal seasonality, but are up slightly compared with the prior year. While this performance is mostly driven by a historically low comparison period, it also reflects the results of our industry-leading home builder division and is further indication that the market has stabilized. Refinance open orders remained at trough levels in the Q3, averaging 350 per day, a level they have held all year. Given the current pool of mortgage loans outstanding and the outlook for interest rates, it remains unlikely we will see a significant uplift in refinance in the foreseeable future. Our commercial business revenues declined 39% compared with last year, consistent with the first half of the year. Average revenue per order also declined again this quarter for the fifth consecutive quarter, which suggests that price discovery is well underway as the market corrects. Commercial open orders for the first three weeks of October are down 5% compared with last year and are down 3% sequentially. There is still a high degree of uncertainty concerning the commercial market. However, based on our market intelligence, we continue to expect higher commercial revenues in the Q4, which is consistent with the normal seasonal pattern. While our key purchase, commercial, and refinance markets appear to have troughed, we expect the difficult market conditions to persist well into next year. Despite the uncertainty of the timing of a recovery in these markets, the strength of our business, along with our financial discipline and strong balance sheet, allow us to continue to invest for long-term growth while returning capital to our shareholders. This quarter, we raised our common stock dividend by 2% to an annual rate of $2.12 per share. We also repurchased $9 million of our shares in the Q3 and have accelerated our purchases in October, already purchasing an additional $9 million of our common shares.... In closing, given the importance of people to our business, I am pleased that First American has been named one of the best workplaces for women by Great Place to Work and Fortune Magazine for the eighth consecutive year. This accomplishment is a tribute to our workforce, approximately two-thirds of which are women. I'm proud that First American's commitment to advancing the careers of women and our world-class culture enable us to achieve this recognition year after year. Now, I'd like to turn the call over to Mark for a more detailed discussion of our financial results. Thank you, Ken. This quarter, we generated a loss of $0.02 per diluted share. Our adjusted earnings per share was $1.22. Our adjusted earnings exclude net investment losses of $164 million, primarily due to unrealized losses recognized in the venture portfolio and changes in the fair market value of equity securities, as well as purchase-related intangible amortization of $10 million. As of September 30, the book value of our venture portfolio totaled $301 million, which equates to approximately 7% of our equity and 2% of our total assets. Revenue in our title segment was $1.5 billion, down 19% compared with the same quarter of 2022. Commercial revenue was $160 million, a 39% decline over last year. Our average revenue per order for commercial transactions declined 15% this quarter to $10,763, due to a combination of fewer large transactions and lower valuations as prices in the commercial market reset. Purchase revenue was down 15% during the quarter, driven by an 18% decrease in the number of orders closed, partially offset by a 3% increase in the average revenue per order. Refinance revenue declined 41% relative to last year due to the increase in mortgage rates. In the agency business, revenue was $665 million, down 27% from last year. Given the reporting lag in agent revenues of approximately 1 quarter, these results reflect remittances related to Q2 economic activity. Our information and other revenues were $240 million, down 14% relative to last year. This decline was the result of lower transaction levels across several business units, driven by the company's data and property information products and post-close and document generation services. Investment income within the title insurance and services segment was $142 million, a 35% increase relative to the prior year. The increase was primarily due to rising interest rates, which drove higher investment income from the company's cash and investment portfolio, e scrow balances, and tax-deferred property exchange balances. The impact of higher interest rates was partially offset by lower average balances, primarily in the company's escrow and tax-deferred exchange balances. We continue to manage expenses given the decline in transaction activity. Our success ratio was 50%, meaning that our personnel and other operating expenses declined $127 million, and our net operating revenue declined $253 million. The provision for policy losses and other claims was $35 million in the quarter, or 3.0% of title premiums and escrow fees, down from the 4.0% loss provision rate in the prior year and down from the 3.5% loss provision rate in the first half of this year. The 3.0% loss rate reflects an ultimate loss rate of 3.75% for the current year, with a $9 million release for prior policy years. Over the last several quarters, we have highlighted the margin drag in the title segment related to three strategic initiatives: ServiceMac, Endpoint, and Instant Decision for purchase transactions. This quarter, these initiatives together generated a pretax loss of $12 million, impacting our pretax title margin by 110 basis points, an improvement from the 130 basis point drag in Q2, primarily driven by deboarding fees received by ServiceMac. Pretax margin in the title segment was 10.5% or 12.0% on an adjusted basis. Total revenue in our home warranty business totaled $108 million, a 3% increase compared with last year. Pretax income in home warranty was $9.4 million, up 124% from the prior year. The loss ratio in home warranty was 55%, down from 59% in 2022, driven by lower frequency and severity of claims. The effective tax rate for the quarter was 29.4%, higher than our normalized rate of 24%, due primarily to the mix of income between our insurance and non-insurance businesses, since our insurance business generally pays state premium tax in lieu of income taxes. In the third quarter, we repurchased 161,000 shares for a total of $9 million at an average price of $57.87. So far in October, we have ramped up our purchases, buying 162,000 shares for $9 million at an average price of $52.90. Our debt-to-capital ratio as of September 30th was 29.7%. Excluding secured financings payable, our debt-to-capital ratio was 23.5%. Now, I would like to turn the call back over to the operator to take your questions. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of John Campbell with Stephens. Please proceed with your question. Hey, guys. Good morning. Morning. Morning, John. Hey, I just want to make sure I heard you correctly on the order commentary for October. You said that purchase is trending up year-over-year thus far in October? Yeah. So purchase is, you know, it's up, it's up slightly for the first three weeks in October, very slightly. And a lot of it is driven because, you know, included within the purchase transactions is, you know, resale, which is most of them, and we also have new homes, and new homes is performing... Yeah, yeah, we do have a slight increase in purchases, which is, you know, nice to see the, the lines cross here. Yeah, absolutely. I mean, just given the backdrop of continued upward pressure on rates, that's a great outcome. You know, new home sales, I think, may be a little bit less than 10% of the national mix. What does that look like for you guys? A little bit higher? It's a little bit higher. You know, historically, the long-term average is about 13% of our purchasers are new home-related. So far in October, they're 19%, a little overweight, so that's our mix is a little bit higher than the average. Okay, thank you. I'd add to that, John. I mean, one thing to keep in mind that we have an outsized share of the market in new home, which obviously is a, you know, a good competitive advantage for us. Yeah, absolutely. And then last question here on the interest expense, that's obviously been up a good bit the last two quarters. I want to get a better grip on that. I know that's influenced by the bank deposits, so maybe if you could unpack that, kind of if you could decouple those two items, just the underlying interest expense versus the bank effect, and then how we should be thinking about the run rate of interest expense here, just assuming that rates stayed near current levels. As a general statement, when you look at interest expense in our corporate segment, it runs $12-$13 million a quarter, and that's really primarily the interest expense that we, you know, pay on our bonds. We also have interest expense in our title segment, and that's really driven by kind of the cost of funds in our banking operations, both at our bank, First American Trust, as well as our warehouse lending business pays interest expense, too. So those are the two components that make up our, you know, the $23.5 million of interest expense we had in the title segment this quarter. Okay, that's helpful. Thank you, guys. Thanks, John. Thanks, John. Our next question comes from the line of Soham Bhonsle with BTIG. Please proceed with your question. Hey, guys. Good morning. Hope you're doing well. Good morning. I guess the first one, just on the interest income. You know, can you just, Mark, maybe update us on the year here, and then just maybe help us size, you know, what needs to be replaced from sort of the roll-off in ServiceMac, and you know, how quickly you'd be able to sort of do that? Thanks. Yeah, thanks for the question, Soham. In terms of the year, I mean, you know, we're obviously three quarters done. When we look at Q4, we think, you know, based on what we're seeing now, investment income should dip a little bit in Q4, a few million, $5 million-ish, let's say, plus or minus. Most of that is just driven by the fact that, you know, we did lose these Homepoint loans, which we've talked about for a couple of quarters. In the last 30 days or so, we've lost about $300 million of deposits related to that, which was really earning what's called Fed funds. That's kind of the headwind that we're gonna see in the fourth quarter in terms of our investment income. I will say that about 75% of that, though, is gonna be a reduction in, in interest expense in the title segment, too. So it's not all fall to the bottom line, but about 25% of it will. Okay. And then on Endpoint, Ken, I, I think you've previously talked about the opportunity there sort of being twofold, right? Like, where you, you could potentially get some efficiency gains, but then there's also sort of this enabling of better customer service. I was hoping you could maybe dig a little bit deeper on the efficiency piece of the value proposition there. You know, what sort of efficiencies do you sort of envision, and how does that maybe translate to, you know, margins versus, call it, the legacy title business? Yeah, I, I, thanks for the question. I mean, I think it's early days to exactly measure the efficiencies, but, you know, we anticipate sort of increasing the efficiency of an escrow officer, you know, fairly substantially. Again, it's hard to put a number on that at, you know, at this point, but we know there will be efficiency gains as we automate, you know, some of the, you know, some of the more mundane tasks that an escrow officer does and frees them up to do the more, more people-intensive and people-intensive tasks. There's also other sort of efficiencies that we'll gain, and we have already started gaining from Endpoint just by deploying some of their technology in other parts of our, other parts of our company. We've mentioned in the past about Jot, which is our, you know, which is our mobile notary management system. We've relied upon third parties for that in the past. We're now able to do it more efficiently in-house, and have made a lot of progress rolling that out in the direct division. There's, you know, it'll probably be fully rolled out in the direct division sometime next year. Okay. And just, just one more, Mark. I think, you know, on, on the loss provision rate, I guess you lowered it 25 basis points, but, you know, as we sort of go into next year, and we potentially are in a more sort of uneven macro environment, right? I mean, how, how are you thinking about that on that, on that line, I guess? ... You know that, I'll, this is Ken. I'll start on that. And yes, we did lower the loss rate. And one thing I'll point out, as you recall, during the pandemic, we actually took the rate up, which I think it reflects our, you know, pretty conservative approach when it comes to building our reserves. The concerns we had when we did that in the pandemic didn't come to fruition. Some of the concerns we had during the current market, you know, also haven't come to bear. So we've built an extremely healthy level of reserves. In fact, we're probably pushing the upper bounds, I mean, and I want to emphasize, the upper bounds of reasonableness, and we think it was the right time to decline it. So, you know, we obviously continuously monitor our reserving level. The situation could change, but I think, you know, more directly to your question, I think we could probably expect this rate to prevail at least through 2024. Okay, great. Thanks a lot. As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from line of Bose George with KBW. Please proceed with your question. Hey, guys. Good morning. So first question, just on the deboarding fees from ServiceMac, how much was that this quarter? And is there more of that to come before that fully rolls off? Yeah. Hi, good morning, Bose. So this quarter, we had a $3 million benefit because of deboarding fees. And roughly about 40% of the loans were deboarded. So we have another, call it 60% to come at some point next year. We're not exactly sure about the timing. Okay, great. Thanks. And then can you just talk about capital return priorities? You know, could we see the cadence that the buybacks, you know, pick up? Or, and just also from a leverage standpoint, you know, what is that a constraint to keep in mind? Just, you know, just curious how you're thinking about it more broadly. Thanks for the question. I'll start, Bose. The, you know, obviously, as we talked about earlier, we've accelerated the pace of buybacks. We've already, in October, bought back shares at the same pace we did in the entire third quarter. And right now, I think our stock is attractive. We've accelerated repurchases, and we think it's very attractive. But obviously, we weigh repurchases, you know, against other uses of capital, such as, you know, reinvesting in the business and M&A. But, you know, we're obviously committed to return capital to our shareholders, and we think buybacks right now are a pretty attractive alternative. And Bose, I'll just comment on the debt leverage part of that question. So our debt to cap, we look at it excluding secured financings payable because there's sort of a gross up there. And if you do that, it's 23.5% this quarter. We've talked about, like, 18-20 being our long-term target, but we're very comfortable, especially here at the trough of the market, being higher than our target. So 23.5 is a very comfortable place to be. I think particularly since when you look at the balance sheet, we've got $1 billion of, you know, of AOCI, and we feel really great about the credit there. So, so we think that's temporary, and that'll just kind of help our debt to cap as we go along. So we're in a very comfortable place in terms of our debt right now. Okay, great. Thanks. Actually, just one more. In terms of investment income, you know, if the investment income is coming from deposits at your bank versus Escrow that you send to third parties, does it make a difference on the return, or are you kind of agnostic in terms of that? Or you know, could you sort of increase one or the other if the returns are better? There is a difference. I mean, typically, when we give our deposits to third-party banks, the general rule of thumb is that we'll typically earn Fed funds. When we invest it at the bank, our cash that's at the bank will earn Fed funds. And then the rest of it, most of the escrow deposits we push to the bank, we buy mortgage-backed securities. And so we're really getting kind of a mortgage-backed security rate as opposed to, you know, Fed funds. And sometimes that could be higher, and sometimes that could be lower than Fed funds. Right now, it's lower just because of the fact that rates have risen. Okay, that's helpful. Thanks a lot. Thanks, Bose. Our next question comes from the line of Geoffrey Dunn with Dowling and Partners. Please proceed with your question. Thanks. Good morning. Morning, Jeff. I was hoping you could talk a bit about the commercial market. In particular, you know, where are the large deals down the most? I'm assuming it's office, but I'm interested in a little more color. And more importantly, where are the areas that you're seeing opportunity versus drag outside the office market? Well, a couple things I'd say. First of all, when you just look at the large deals, we had 4, you know, what we call mega deals with premium over $1 million this quarter, and a year ago it was 7. We're not seeing the same level, you know, of large deals. The large deals that we are seeing are, really half of them are multifamily. We had another one that was just a development site. But generally speaking, I would say the large deals are, we're just at least just not there this quarter. In terms of our, you know, our, our top asset classes, like where we see in business, multifamily is 22% of our commercial revenue, so we're seeing a lot of activity there. Industrial has always been strong, even through, you know, the pandemic. It's 17% of our, of our revenue. And then development sites, which are sort of these greenfield sites, is 16%. So those are our top three. Retail is 10%. Office, you mentioned that, Jeff. Office is 5%. So that gives you a little bit more color... flavor in terms of our, our revenue. Now, that doesn't all add up to 100. There's other asset classes. We've got ag, we've got energy, hospitality, but I referenced the big ones. You know, the thing I would add, too, Jeff, in terms of, you know, sort of the outlook going forward on asset classes, I think probably the more attractive ones are gonna be the ones where we've already seen the most price discovery, like suburban office, and multifamily and energy, is also probably gonna be a big asset class for us. You know, thinking back on multifamily, and when I say suburban office, it's gonna be anything that's gonna be outside of the big CBD areas. It's not gonna, you know, the central business districts are under strain right now for obvious reasons. Right. So as you look out to 2024, your commentary is cautious in your press release. What is your number one concern? Is it commercial? Is it direct resi? Now, what, what one is, is more uncertain at this point in your minds? Well, I mean, I'm uncertain and concerned about all of them, except refi. I know that's not gonna get better. So I think there's concern in all of them. You know, I think if you forced me to weigh the two, I'm probably a little more optimistic about commercial, just because I feel like we're making our way through this price discovery. And I think we anticipate to see transaction levels tick up a little bit in commercial next year albeit you know keep in mind, at lower prices. So we'll see more orders, but they'll be at lower prices given this price discovery. You know, I'm... we're cautious about all of it into 2024. Now, we may get some relief if interest rates go down. You know, when I last checked the forward curve, which was yesterday, ooh, I don't know where it is today, where they had three rate decreases next year, beginning in the middle of next year. Now, the forward curve is historically inaccurate, but, if that comes to fruition, that'll help, but that's, you know, middle to end of next year. Right. Okay, thank you. Our next question comes from the line of Mark Hughes with Truist Securities. Please proceed with your question. Yeah, thank you. I'm not sure if this may be too granular, but I'm curious whether you saw any impact in the purchase market through these weeks of October with the interest rate fluctuations? No, we haven't seen it, Mark, and it's been a little surprising because when you look at our purchase orders, they've been following the typical long-term seasonality pattern all year long. So our purchase orders on the residential side, I mean, they're at low levels now, but they haven't gotten any worse. They're, you know, they're getting worse now just because of seasonality. But when you look at the normal seasonality curve for the last nine and a half months, it's been right on the normal curve, and that's surprising, especially recently, given the fact that mortgage rates have climbed, particularly in the last 90 days here, we're tickling 8%. So, but to answer your question, though, we haven't seen any falloff in purchase orders because of the recent climb in rates. Then, in the warranty business, I think I've heard you say that direct-to-consumer has been a good channel with real estate being weak. How is that holding up? Are you seeing success there? Yeah, I mean, we are in general seeing, you know, success with DTC, and I think, you know, I think we've demonstrated, we turned the dial up on our marketing expense, that, you know, we see the immediate impact on contracts and DTC, though it takes some time for profitability to be realized. You know, I think the story with the home warranty is that they've, you know, done a really good job of managing claims in an inflationary environment, so that's been helping. You know, frequency is down because of lower policy counts, but severity is down. And then we're realizing, you know, more and more as time goes on, the benefit of some pricing actions we've taken. So we're very positive on home warranty, and we're, you know, real positive on the strides that group has made on the DTC channel. So there's real opportunity there. Understood. Then finally, any update on instant decisioning, either from a rollout, potential benefit, expense standpoint? Yeah, you know, it's still early days there, though we are anticipating rolling out, you know, two markets on a test basis at the beginning of next year. So they're hitting their milestones, and we're, you know, we're real positive about that. And, you know, as we've mentioned in the past, the great thing is it's hard to do. It's impossible to do if you don't have the data, and we've got more data than anyone. So it's, you know, it's trending well. Thank you very much. Thanks, Mark. Thank you. We have reached the end of the allotted time we had for questions, and that concludes this morning's call. We would like to remind listeners that today's call will be available for replay on the company's website, or by dialing 877-660-6853, or 201-612-7415, and enter the conference ID 13741673. The company would like to thank you for your participation. This concludes today's conference call. You may now disconnect.