First American Buys Default Processor

First American Financial Corp. has acquired a Texas-based operation that helps mortgage lenders nationwide process loan defaults by their borrowers.

The unit, previously owned by Dallas-based law firm Barrett Burke Wilson Castle Daffin & Frappier, is one of the largest default-processing operations in the country, handling about 40% of all loan defaults experienced by large mortgage bankers, First American said. The operation has offices in 18 cities.

Terms of the purchase were not disclosed.

Officials at Santa Ana-based First American said the unit will complement its other services targeted at the mortgage industry.