FNIS is launching broker and agent technology solutions through partnerships with franchise organizations like Prudential and direct to MLS customers to provide them what FNIS says they are lacking - affordable technology solutions so they can market listings and themselves on the Internet.

According to the boilerplate, FNIS is a majority-owned subsidiary of Fidelity National Financial (FNF), the largest title insurance and diversified real estate related services company in the nation. FNF's title insurance underwriters -- Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title -- together issue approximately 30 percent of all title insurance policies nationally.

FNIS's mission is to deliver "intelligence and technology" to "lenders and real estate professionals to speed transactions and eliminate risk throughout the home purchase and ownership life cycle." While they aggregate listings and tax roll data through their MLS information services (Paragon,) they also make agent Websites, transaction management software for brokers, and back office business management software. For banks, FNIS makes automated valuation tools that use most of this information to sell to banks, and to other portals to be accessed by consumers on sites such as Lending Tree. The company also makes processing and servicing software. The transaction software makes it easy to incorporate other service providers, including title companies like FNIS' parent.

While the company may have developed a niche in data aggregation and management, FNIS is also between a rock and a hard place - how to continue building the value of its data to its cache of banks, mortgage brokers and consumers, without alienating its other core constituency - Realtors. CEO Patrick Stone lays out for Blanche Evans how he and his team are trying to create a profitable business under those restrictions.

B.E.: FNIS has sat on the sidelines during the VOW debate which is about how listing data is disseminated. Some discussions are taking place that the MLS database should be sold at a profit to the Realtors who supply the data. You're a listing data company which serves both Realtors and consumers. You would be in a great position to benefit. What would you like to see happen?

P.S.: We let the Realtors govern disposition of data, but if it is public, recorded in the public domain, we can package it. We don’t allow people to access MLS information that we are processing.

We have had discussions with MLSs about reselling the data, and some MLSs want to monetize the data, and we have had that conversation. A lot of people want that data and we looked at it, and we wanted it and lenders want it. It would be instrumental in doing automated valuation products. What would be valuable is if you have access to the data, you have a home with so many bedrooms you would have specificity to refine valuations to a new level."

B.E.: Should MLSs sell access to the database to consumers? to you?

P.S.: That would be one way to derive revenue, and it would be a benefit to the consumer and benefit to lenders to get better values, but any initiatives we have had, we’ve been very careful. We were rebuffed by some MLSs who have the view that it is proprietary data; our inquiries fell on deaf ears. We don’t want to offend our client base.

FNIS would benefit in that we could improve valuation models on getting values on homes. We have a sophisticated AVM, and we could make it even better and more reliable, and that was our major interest. I think of evaluations as appraisals, instead of going out and measuring the home, you have a process in which an appraiser obtains a lot of information, and if you had it off the MLS database, you could go a long way in expediting the AVMs. We aren’t aggressively pursuing MLS data, because we don’t want to offend our client base.

Appraisers would like to have open access, and it would make the market more efficient. How would FNIS use it? We would dump it into our AVM model, in real time. We sell our AVMs to consumers, to look at a property, that would be a consumer application.

B.E.: Would they (brokers) look at it as taking the client away?

P.S.: The value they (brokers) bring to the client is understanding the marketplace - negotiating, solving problems, knowledge of the transaction process. Those are the things that give the Realtors value. When you want to buy or sell a home, you use the Realtors who are good.

B.E.: If a consumer could get all the MLS data, wouldn't they say 'Why do I need a Realtor?'

P.S.: I don't think they would. You still need a Realtor. If I did that myself, we would way overpay for homes my wife likes!

B.E.: What does Barry Diller buying Lending Tree mean to FNIS?

P.S.: The Lending Tree investment was at FNF, and they made a nice profit on that investment. When it closes, we tender our common shares and make a nice profit on our investment.

On a higher level, in general terms, is it a media play. It is intriguing they are investing in the real estate; they have deep pockets and have the ability to execute. It will be intriguing. I am fascinated by what their long-term plans are. I see a lot of resources and capability channeled, and he is an accomplished businessman.

B.E.: Will you continue to provide consumer AVMs to Lending Tree?

P.S.: To my knowledge that hasn’t been affected. We will look to opportunities as long as it doesn’t cause channel conflicts.

B.E.: It sounds like you are between a rock and a hard place - you are in the data aggregation business which would benefit lenders and consumers but to get the data you have to be careful not to get the data from Realtors and render them less important to the consumer. How does it feel to walk that line?

P.S.: That's one of my biggest fears. FNF will do $6 billion in revenues and $4 billion is tied to lender and Realtor relationships. We sell data and provide services but what we can’t do is be perceived as invading their business. We want to provide valuations to Lending Tree, but we don’t want to challenge clients.

B.E.: If Realtors are important to your business model, what do you have planned for them in terms of services?

P.S.: We will making some announcements. We are working on different things. We will be talking about broker outsourcing to provide outsourcing of IT. That is an underserviced area and it will help brokers cut costs. We did that with Homeservices of America (a national real estate brokerage) and we will be replicating that. The broker is the boss, and we will be the outsource for systems and solutions. We think that is a real business opportunity for us, and brokers need that. IT is a burden for them, a resource drain, and that is something we are well-positioned to provide.

B.E.: What kind of IT?

P.S.: We will host their data centers, Websites, backoffice software, transaction management software. We are not exclusive to our products, but with data centers, we are positioned to say 'What do you need and how can we help you lower your costs?'

FNIS – MLS serves about half the MLSs, over 400,000 Realtors. When you break it down to add-ons - Realtor desktops, it's a ceiling of about 150,000. That needs to be broken. There are financial constraints on the adoption of technology - who can afford to spend the money? You can spend all day trying to sell something, but it is risky when you are making $137 a deal. You will spend to save if you can quantify it. It has to be more cost effective.

B.E.: Will there be a marketing component? Look out, Realtor.com?

P.S.: We have some tools. We have developed Websites for Realtors. We haven’t gotten into the portal business - we are more of a facilitator.