National City Mortgage: Online rate sheets in .pdf format

1
The New Web-based Transaction Platforms Not Just
for Wholesale Banks Anymore?

• Allan Redstone, CEO of GHR Systems, Inc.

MBA Annual Convention October 21, 2003
2
Web-based Transaction PlatformsAn Evolution in
the Making

• Single wholesale lender web-based transaction
  platforms

• Multi-lender or Marketplace web-based transaction
  platforms(e.g., IMX, Ellie Mae, BrokerOneSource,
  etc.)

• Direct to consumer web sites
• QuickenMortgage
• eLoan
• Single lender web sites

• In other words, the first web-based platforms
  were outward facing by necessity

3
Single Lender Platforms New Wholesale - Broker
Relationships

• These transactions platforms were widely accepted
  by wholesale lenders when they became available.
• They are implemented by a single lender to
  automate the origination process for its broker
  community.
• They revolutionized the way wholesale lenders and
  brokers do business.
• They are being implemented by large and mid-size
  lenders as well.
• GHRs experience is that its wholesale web
  platforms gain close to 100 acceptance from
  brokers very quickly

4
Current State-of-the-Art Wholesale Website
Functionality

• Access to DU, LP, and/or other third party AUS
• Online pricing
• Rate lock capabilities
• Integration with popular broker desktop platforms
• Generation of documents disclosures
• Fraud checking
• Third party service ordering

5
5 Largest Wholesale Lenders and their Wholesale
Web Capabilities
2002 Thomson data
Functionality that is advertised as available to
brokers who register on the websites of these top
5 lenders Wells Fargo Real-time
registrations, locks, and price confirmations as
well as customized pipeline reports. Also
contains information including rate sheets,
underwriting guidelines, downloadable marketing
materials, and more. ABN Amro Mortgage Group,
Inc. Speed, with instant rate locks,
up-to-the-minute loan data, online funding and
closing, and innovative automated underwriting
system. Value Added Network gives the competitive
edge, with a dynamic collection of market-growing
e-tools. Tech pros provide support, with fast and
knowledgeable trouble-shooting service. Washington
Mutual instant and accurate loan decisions
online, eliminating the use of the fax machine
during origination viewing of broker specific
risk-adjusted pricing, transaction specific
closing costs and lender/investor stipulations
lock or float a loan online independent credit
reports available from all major credit bureaus
separate from AUS submission and printing of
opening documents including the 1003, TIL
statement and Good Faith Estimate. Countrywide
Financial Corporation Automated pricing 24 by
7, e-Pipeline, e-Approval, Loan Status,
e-Learning Center, Sales and Marketing Materials,
Program Guidelines National City Mortgage
Online rate sheets in .pdf format, links to
automated underwriting systems such as eMagic,
Fannie Mae and Freddie Mac, and links for
mortgage insurance
6
Multi-lender Transaction Platforms A New
Distribution Channel

• Multi-lender sites emerged but were not widely
  used when first available.
• Main market for multi-lender sites are regional
  lenders looking to gain market share or regional
  lenders looking to sell a niche loan product.
• The big national lenders already have a large
  base of brokers using their single lender sites
  and don't really need to attract more brokers.
• But as Refis disappear, any multi-lender site
  that is getting significant broker attention will
  become attractive to lenders of all sizes.

7
Pricing of Web-based Transaction PlatformsThe
Key to Success

• Multi-lender transaction platforms grow more
  attractive to smaller lenders.
• Proper pricing by technology providers ensures
  market share and profits.
• Proving the value of technology.
• Aligning technology provider and lender goals

8
Implementing Web-based Transaction Platforms
Items to Consider for Single Lender Model

• Security
• Audited technology supplier
• Provider track record
• ASP vs. Hosted by lender
• Scalability

9
Implementing Web-based Transaction Platforms
Items to Consider for Multi-lender Model

• Cost of participation in multi-lender site vs.
  cost of other distribution channels
• Up front investment (time and resources required
  to get set up)
• Market segmentation of the brokers attracted to
  the site

10
The Next Step Web-based systems for Lenders
internal use

• Loan officer automation
• Call Center applications
• Loan processing, underwriting, and closing
• Servicing
• Very few lenders are running their loan
  production systems on web-based platforms today

11
Benefits of Web-based Platforms for Internal Use

• Reduced Total Cost of Ownership (TCO)
• No desktop software to deploy and maintain
• All data stored on central server easier to
  secure and backup
• Much quicker and cheaper to implement and manage
  changes
• HR flexibility
• Processing centers can be instantly opened
  wherever there is secure network connectivity
• Outsourcing possibilities
• Work from home

12
Negatives of Web-based platforms

• Requires network connectivity
• Wireless network access not ready for prime
  time, yet
• Scalability and performance issues must be
  carefully evaluated

13
Current State of the World

• In non Mortgage Banking industries, systems are
  moving to web-based applications rapidly.
• All RFPs from top lenders today require web UI.
  This is for mortgage as well as consumer lending.
• Most mortgage technology vendors currently have
  partial web-based solutions. The technology
  vendors that survive will have purely web-based
  offerings in 2-3 years.