Express Financial Services Inc. filed for bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Pennsylvania on Nov. 21. 

Based in <?xml:namespace prefix = st1 />Pittsburgh, the company officially closed its doors Sept. 17. The death blow may have come about six months ago when EFS lost Countrywide as one of its clients when the lender chose to work with four VMCs on a national level instead of several. 

Also taking a toll on EFS was the fallout in the subprime market. EFS had several branch offices serving local markets that relied on brokerage customers for orders. EFS’ customer base dried up as the brokers focused on subprime loans closed shop.

The company’s closing cost the jobs of about 100 workers — down from a peak of 400 to 500 several years ago. 

The voluntary petition for bankruptcy protection was signed by EFS President Clare Gallagher.

The petition listed 20 major unsecured creditors including an $800,000 stock redemption claim plus over $750,000 in a variety of claims covering title premiums, appraisal services, accounting services, and delivery services such as Federal Express and UPS.

Founded and established by Richard Fuchs in 1985, EFS enjoyed more than 20 years as one of the leading title insurance, valuation and settlement service providers in the nation, offering mortgage lenders and brokers one-stop shopping for mortgage information needs. What made EFS unique in the vendor management arena was its diverse business lines, the company said, appealing to large regional and national lenders with its centralized lending platform, National Service Center (NSC), and its network of regional branch offices (decentralized platform) that serve smaller clients with a "higher local touch," including regional loan processing centers, mortgage bankers and mortgage brokers. This diversified client base and workflow demands posed the greatest challenge for the company in its technology overhaul.

Since its inception in 1996, the NSC built a reputation for providing personalized services with associates supported by industry-leading mortgage technology. EFS offered appraisal and valuation products for originators and serves as an agent for title insurance companies such as First American Title Insurance Co. and Stewart Title Guaranty.