Title Resources Group (TRG) has reportedly made significant cuts to its workforce, focusing on independent title agents following its acquisition of Doma Holdings in March.
Layoff Details and Company Restructuring
On Friday, TRG implemented layoffs that primarily impacted personnel within Doma’s agency division—part of a strategic overhaul aimed at optimizing its operations with independent agents.
While TRG has not specified the exact number of employees affected, insider estimates suggest that at least 20 workers were let go.
The layoffs are part of a broader effort to streamline roles in sales, auditing, and support.
Since TRG acquired Doma’s title insurance business about nine months ago, it has reportedly reduced Doma’s network of independent title agents by about 40%, leaving approximately 420 agents still in operation, as noted by a former Doma associate.
Notification Process and Company Response
The notifications for layoffs were delivered via meeting invitations on Friday morning, outlining calls scheduled with TRG’s human resources team and CEO, Scott McCall.
During these discussions, employees learned of the layoffs set to take effect on January 1, along with information regarding severance packages tied to their tenure.
Up to this point, TRG has not issued any public comments concerning these layoffs.
Doma’s Financial Situation and Strategic Changes
In March, TRG finalized its acquisition of Doma Holdings for nearly $88 million, with the deal formally concluding in late September.
As a result of the acquisition, Doma’s underwriting division now operates as a subsidiary of TRG, while its technology sector has been rebranded as Doma Technology LLC, allowing it to maintain independence.
Both TRG and Doma Technology are currently backed by Centerbridge Partners, the primary shareholder.
Additionally, Hudson Structured Capital Management gained a notable ownership stake in Doma Technology through the acquisition.
The deal also introduced LENX, a segment of homebuilder Lennar, as a minority shareholder in TRG, alongside other notable organizations like Anywhere Real Estate, HomeServices of America (under Berkshire Hathaway), and Opendoor Technologies.
Some in the industry speculate that these layoffs are part of TRG’s efforts to reinforce its relationship with Lennar.
A former Doma affiliate pointed out how the merger has led to a decreased presence of independent firms within the combined company.
As of the end of June, Doma reported net premiums of $139 million, down from $146 million the previous year.
The company also experienced net losses of $41 million, showing improvement from last year’s losses of $78 million during the same period.
Doma went public through a special purpose acquisition company during the early days of the COVID-19 pandemic but struggled to achieve profitability, leading to shifts in its business strategies.
Its Doma Intelligence platform, launched during a refinancing boom, automated many aspects of the closing process and generated significant efficiency gains.
However, when the market slowed in 2022, Doma faced renewed challenges, prompting two rounds of layoffs: an initial 15% cut, followed by a dramatic 40%, which resulted in the loss of 515 jobs.
As the path to profitability stalled, Doma began selling off parts of its retail title operations.
Williston Financial Group acquired several retail outlets in May 2023, with additional sales proceeding in Texas and other areas.
Doma has now signaled a strategic pivot, focusing on licensing its title underwriting software to mortgage originators and players in the secondary market, aiming to reduce costs for consumers involved in mortgage transactions.
In its final quarter as a publicly traded entity in Q1 2024, Doma recorded a net loss of $20.6 million, an improvement from the net loss of $42.1 million reported in Q1 2023, even as its revenue dipped to $66.07 million.
Source: Housingwire