McDonald Computer Corporation Announces 45-Day Emergency Conversion Plan For Mortgage Servicer Y2K Compliance

Business Wire, Feb 25, 1999

LOS ANGELES--(BUSINESS WIRE)--Feb. 25, 1999--

MCC offers solution to servicers seeking last-minute compliance

alternatives

McDonald Computer Corp. announced today at the National Mortgage Servicing Conference a plan for servicers that will enable them to convert to its Servicing/T.I.M.E. servicing system in 45 days.

The conversion plan is specifically designed for servicers scrambling to meet last-minute Y2K deadlines. Until now, many servicers (mostly small and mid-sized) have been unable to meet computer systems Y2K compliance deadlines. As a result, the only option left for these servicers was to sell their portfolio to larger servicers that already met Y2K compliance standards. McDonald Computer Corporation's 45-day Emergency Servicing/T.I.M.E. conversion plan enables servicers to switch to its system, either as a stand-alone or service bureau, while meeting all critical Y2K compliance dates.

"We continue to see many servicers that have not resolved their Y2K compliance issues," said James B. McDonald, president of McDonald Computer Corporation. "Critical deadlines have passed, and the reality has set in that without an immediate conversion solution, the only alternative is to sell their portfolios or have another company subservice them - in either case they lose their servicing department. McDonald Computer's 45-day Emergency Servicing/T.I.M.E. conversion gives these servicers an immediate conversion solution."

Y2K compliance guidelines set by the MBA and other governing agencies state that institutions relying on service providers for mission-critical systems are to complete testing no later than March 31, 1999. In addition, servicers should begin external test with customers, other financial institutions, business partners, payment system providers, etc. no later than this date. Servicers unable to meet these deadlines will be reviewed on a case-by-case basis.

McDonald Computer's 45-day Emergency System conversion enables servicers to migrate to the company's latest version of Servicing/T.I.M.E. The system includes such enhancements as full Year 2000 compliance, forced-placed insurance tracking, bankruptcy foreclosure tracking and universal tracking, as well as on-line loan file maintenance history. Servicers needing additional Y2K compliance information can visit the following Web sites:

www.mbay2k.org

This site has information from the Mortgage Bankers Association's Year 2000 Test Project Office. The MBA requires that service providers and software vendors who plan to participate in the MBA's Year 2000 Readiness Test fill out a short survey. Servicers can also download the MBA's Mortgage Industry Year 2000 Readiness Test White Paper from this site.

www.freddiemac.com/y2k

This site provides critical information for servicers seeking Freddie Mac Y2K compliance. The site includes downloads for Y2K testing, news and confirmation requirement forms.

www.fanniemae.com/year2000/faq.html

This site provides information to frequently asked questions regarding Fannie Mae Y2K compliance guidelines and deadlines.

www.ffiec.gov

This site provides information regarding Y2K compliance requirements from the Federal Financial Institutions Examination Council. Servicers must meet these requirements by June 30, 1999.

About McDonald Computer

Celebrating its twenty-first year in business, McDonald Computer Corporation is a leading provider of servicing systems to the mortgage and financial industries. Its flagship product, Servicing/T.I.M.E., is a fully automated mortgage loan investor servicing system designed and developed by mortgage bankers. The system performs all mortgage servicing tasks, including cash processing, escrow disbursements, on-line collections, automated hazard tracking and force placing of policies, investor reporting, customer service, tax service, lockbox, ACH, foreclosure tracking, custom letter generation and various other servicing duties. Year-end processing includes initialization of files, annual statement, IRS reporting, escrow analysis, and any desired special forms (1099s, 101s, Schedule K-1s).

For more information on McDonald Computer or any of its products and services, contact Harry Stefaniak, at 800-966-8463, ext. 211, e-mail at stefaniakh@mcdonaldcomputer.com. Or write McDonald Computer Corporation, 21411 Civic Center Drive, Suite 100, Southfield, MI 48076-3910, or visit its Web site at www.mcdonaldcomputer.com.