ARC SystemsARC Systems

2600 Via Fortuna #5002600 Via Fortuna #500

Austin, Texas 78746Austin, Texas 78746

(512) 892-5550(512) 892-5550

fax (512) 892-5552fax (512) 892-5552www.arcsystems.com

ARC Systems

LoanFinder Express™

June 6, 2004

Phase 1

Mid-Tier Lenders• Product Definition

• Control Adjustments

• YSP

• & More

Mortgage Brokers• Field or Office

External Services• Credit Bureau

Warehouse Line• Approved Lenders

Lender Guidelines• Multiple

• With Adjustments

Lender-Controlled Investor Guidelines

• Multiple

• With Adjustments

email Lock Request to Investor

Smart Phone• Field operations

Nonprime Lenders

Phase 2 – Investor Connections (Direct)

Mid-Tier Lenders• Product Definition

• Control Adjustments

• YSP

• & More

Mortgage Brokers• Field or Office

Warehouse Line• Approved Lenders

Investors• Pricing / Product

Direct Feed

Lender Guidelines• Multiple

• With Adjustments

Lender-Controlled Investor Guidelines

• Multiple

• With Adjustments

Nonprime Lenders & GSE / Fannie & Freddie

Phase 3 – Ancillary Services

Mid Tier Lenders• Product Definition

• Control Adjustments

• YSP

• & More

Mortgage Brokers• Field or Office

Warehouse Line• Approved Lenders

Investors• Pricing / Product

Direct Feed

Lender Guidelines• Multiple

• With Adjustments

Lender Controlled Investor Guidelines

• Multiple

• With Adjustments

Nonprime Lenders & GSE / Fannie & Freddie

Compliance Checking

Direct Tie to Investor Systems for Locking

Phase 1 – LFE Offering

• Built on ARC Systems’ award-winning / best-of-breed automated underwriting engine

• Including conventional, nonprime, warehouse offerings

• An affordable product for mid-tier lenders / large brokers who require but cannot afford an enterprise-level underwriting engine

• LFE users will be allowed to pick from a basic set of credit attributes

• Analytical depth unmatched in the industry today, based on years of experience in production

Phase 1 – LFE Offering cont’d

• Customized web portal interface…choose from 10 styles

• Entry page provides advertising “real estate” available for purchase

• Investors determine pricing controls/points/incentives to each mid-tier lender

• Mid-tier lenders determine pricing controls/points/incentives to each mortgage broker / seller, including YSP

Phase 1 – LFE Offering cont’d

• Supports product pricing and program guidelines from companies you sell to every day

• Mid-tier lenders can build their own product and pricing guidelines

• Mid-tier lenders can control pricing adjustment to individuals who are given access to their portal

• Mid-tier lenders control userid’s and password security access

• Product and pricing guidelines are updated via web-enabled interface

Phase 1 – LFE Offering cont’d

• Built on ARC Systems’ popular “Quick Price” Engine capability that currently receives over 150,000 hits per month

• DU / MISMO compliant upload / download to / from LOS systems

• Flexible system design allows users to start by pulling credit OR searching for product/price

• User will be able to download loan information for a limited time. In Phase 2, information will be retained for a period of time specified by the lender, at an additional charge.

• Loan applications provide best fit from selected Lenders

Phase 1 – LFE Offering cont’d

• Users can select from a list of supported Credit Bureaus by submitting their authorization code

• Credit is maintained on-line and available for submission to appropriate systems

• Offering Warehouse-line qualification/purchasing directly from the LoanFinder Express system

• Mid-Tier Lenders and Larger Brokers control underwriting guidelines

• Loan Locking via e-mail

• Reporting

– Pipeline, Summary, Application

Phase 1 – LFE Offering cont’d

• Third party Services:

– Phase 1

• Credit bureaus

– Phases 2 & 3

• Fannie Services

• Freddie Service

• AVM’s

• Risk

• Document providers

• Mortgage Insurance

• Compliance checking

Phase 1 – Custom Web Sites

Phase 1 – Custom Web Sites

Phase 1 – Custom Web Sites

User Assistance

• Phase 1– User Manual– Online help at critical points – Data field validation

• Phases 2 & 3– User-defined Workflow control…

Phase 2-LFE Offering

• Direct approvals from both Fannie Mae and Freddie Mac• Interfaces to lenders’ underwriting engines

• Locking tied to lenders’ underwriting engines

• Investor control over products purchased by geographical regions MSA/ZIP/State

• Pool building capabilities

• Automatic submission of pools to Wall Street purchasers

• Extended e-mail capabilities

• Faxing capabilities

• ASP-Based LOS

Phase 3-LFE Offering

• Two-way tie to ACT – loan officer lead generation system

• Tie to county recorder office via defined interfaces

• Make XML standards for counties clerks

– Travis County/Texas MBA first…

• Tie to Closing agent offices

ARC Systems’ Mission Statement

To provide value

for our partners through world class technology, service

and

industry expertise.