New Fleet Division Transforms Mortgage Experience with Combination of Breakthrough Online Products, Process and Technology

Business Wire, August 24, 2000

Business Editors/Technology Writers

COLUMBIA, S.C.--(BUSINESS WIRE)--Aug. 24, 2000

FleetBoston Financial (NYSE: FBF) today launched Celeris Financial Services(SM) -- a new e-commerce division within Fleet Mortgage that transforms the consumer mortgage experience, eliminating the need for excessive documentation, providing the ability to issue on-the-spot approvals and reducing the mortgage closing time to as few as three days.

Celeris' core product -- the "eXtremeline(SM)" mortgage -- as well as related products will be offered primarily to the B2B marketplace, including mortgage lenders, online and traditional originators, and financial institutions, and directly to consumers through Fleet's own expansive branch network in the Northeast and its fleet.com Web site.

Celeris (pronounced "suh-LAIR-us") -- named for a Latin derivative of "fast" -- harnesses state-of-the-art Web- and decision-engine-based technology to enable trusted financial advisors, such as mortgage lenders, bankers, online lenders, real estate agents, and financial planners to provide qualified consumers with an enhanced loan experience.

The new division, based in Columbia, SC, will be led by Chief Executive Officer William B. Naryka, 52, and President Joseph T. McCartin, 38. Naryka and McCartin have been executives with Fleet Mortgage since 1997 and 1998, respectively -- Naryka as chief financial officer and McCartin as chief information officer. Naryka will maintain his Fleet Mortgage position through a period of transition to Celeris (www.celerisfinancial.com).

"A mortgage continues to be the single, largest and most important investment for any consumer," said Naryka. "While the importance of a mortgage will never be diminished, the complexity of the transaction can be simplified for both the originator and the consumer. Celeris' technology accomplishes this by combining innovative e-enabled products, strong partners, a best-in-class decision process and new ways to distribute mortgages and related services."

"Celeris is the only company totally focused on simultaneously integrating product, process and technology innovation to dramatically change the consumer mortgage experience," said McCartin. "The current collection of eXtremeline mortgage products, home equity lines of credit, and credit card offerings represents only a starting point for Celeris. Ultimately, we are in the business of evaluating, aggregating, developing and delivering a wide range of e-enabled financial products and services, including homeowners insurance and more."

"Fleet is aggressively pursuing a number of Internet-based initiatives designed to e-enable our core businesses in ways that directly benefit our customers and provide them with a top-tier Web experience," said Brian Moynihan, executive vice president and managing director of corporate strategy and development at FleetBoston Financial. "This new venture is indicative of our demonstrated Internet expertise: the ability to find a B2B market niche -- a literal franchise offering -- that is scaleable, national in scope, low risk for our company, and integrated into the natural mortgage value-creation process. Celeris is a prime example of our efforts to drive the rapid, centralized development of core capabilities on the Internet; it will transform the traditional mortgage experience, increasing revenue and lowering costs for originators, while delivering high levels of customer satisfaction."

The new company combines its state-of-the-art, proprietary decision engine -- FlashBridge(SM) -- with unique e-enabled products and services to completely re-engineer the typical loan experience. The Celeris flagship eXtremeline mortgage -- a conforming product -- has been developed in partnership with Fleet Mortgage and Fannie Mae.

How Celeris transforms the mortgage experience:

-- Consumers applying for a home loan are required to give their

loan advisors only the most basic, top-of-mind information

(name, Social Security number, down payment amount, loan

amount, etc.)

-- FlashBridge funnels this information through a series of

databases to determine borrowers' loan eligibility.

-- Those borrowers who fall within the program guidelines are

immediately confirmed as eligible for a Celeris eXtremeline

Mortgage -- providing the trusted financial advisor with the

ability to issue an on-the-spot approval. eXtremeline

mortgages currently include conforming, Jumbo and select

non-conforming products.

-- Documentation requirements are drastically reduced by up to 65

percent.

-- In many cases, property appraisals are eliminated altogether.

-- If the customer permits, value-added mortgage related products

and services, such as home equity lines of credit (HELOC) and

credit cards, are simultaneously offered.

Industry research suggests that while many consumers are using the Internet to research and compare mortgage options, only 2 to 3 percent actually apply for loans online. The research indicates that stress related to the home-buying process is compounded by anxiety about online transactions. As a result, most borrowers prefer to seek the counsel of a "trusted advisor" to help guide them through the process -- and Celeris is focused on helping those trusted advisors improve the mortgage loan process for their clients.