An analyst cut his earnings projections for Santa Ana-based title insurer First American Corp. and its key rival amid the ongoing housing and mortgage slump.
Piper Jaffray & Co. analyst Robert Napoli said he sees First American earning a 2008 profit of $129.5 million, down from an earlier projection of $157 million.
First American issues insurance policies protecting homeowners and other real estate owners from contesting claims of ownership.
Refinancing of mortgages, which generates a title policy, has “slowed significantly” as mortgage rates rise, Napoli said.
Falling home sales also were part of the lower profit estimate.
The analyst also cut his profit forecast for Florida’s Fidelity National Financial Inc., First American’s key rival with operations throughout the county.
He rates both stocks “neutral.”
