Dorado and First American's Vendor Management Services Form Strategic Alliance to Streamline Mortgage Processing for Financial Institutions

Business Wire, Oct 30, 2000

Business Editors/High-Tech Writers

SAN MATEO and SANTA ANA, Calif.--(BUSINESS WIRE)--Oct. 30, 2000

Companies to Integrate Home Buyer, Loan Advisor, and Settlement

Service Providers via Secure Internet Portals

Dorado, the premier e-Finance service provider, and Vendor Management Services, Inc. (VMS), a newly established subsidiary of The First American Corporation (NYSE:FAF), today announced the formation of a strategic alliance to streamline mortgage processing for lenders and mortgage service providers, such as appraisers, inspectors, and title companies. The combination is expected to lower mortgage processing costs, and increase loan advisor productivity.

Soon, home buyers, loan officers, brokers, and settlement service providers will be linked via the two companies' secure Internet portals and able to process mortgage requests and services faster and at significantly lower costs. For example, home appraisals, inspections, and title insurance will be ordered and scheduled, and the reporting completed, via Dorado and VMS' linked systems. Both loan advisors and home buyers will know the status of their mortgage and have access to the reports as soon as they are done.

According to TowerGroup, a Needham, Mass., research and consulting firm, mortgage processing is primarily paper-based, costs $1,430 on average, and can take up to 30 days to complete. Automating ordering, scheduling, reporting, and information access can reduce the costs by 60 percent -- a savings of $845 per loan.

"Dorado and VMS will significantly lower the cost and time associated with mortgage processing and increase customer service and satisfaction by making it easier and faster to process a mortgage," said Tom Lounibos, president and chief executive officer of Dorado.

"Joining forces with Dorado will allow VMS to offer its customers a complete e-mortgage solution," said Landon Taylor, president and chief executive officer of Vendor Management Services, Inc. "This exciting strategic alliance represents the next logical step in the development of online mortgage services, bringing the one-click mortgage closer to reality than ever before."

The Strategic Alliance

The two companies each provide a secure Internet portal: Dorado's supports the home buyer, loan officer, broker, and real estate agent; VMS' supports the settlement services companies. The two secure Internet portals will be integrated to allow secure data exchange throughout the mortgage supply chain.

Dorado's current and future customers will be able to request, order, and fulfill all products and services offered by VMS, including title policies, settlement services, appraisals, flood certifications, credit reports, and a full suite of automated compliance services. The newly integrated product will allow VMS' current and future customers to automate the ordering, statusing, and delivery of their requests for settlement services and other mortgage transactions, completely over the Internet.

Under the terms of the agreement, Dorado and First American will jointly market the combined solution to financial institutions.

About Dorado

Dorado provides e-Finance applications to the top 150 US banks and other financial institutions. Our clients use our technology and services to better market and deliver their products through all their distribution channels. By providing personalization and collaboration capabilities, Dorado's financial applications help financial institutions acquire, serve, up-sell and cross-sell, and retain consumers.

Dorado applications are web portals -- dynamic and customized web sites that our clients' employees, partners, and consumers use to view and manipulate consumer data. Dorado's first application and market is mortgage banking.

Since launching its services in March 2000, Dorado has reached technology and service agreements with more than 15 leading financial institutions. Dorado customers include: Chase Manhattan Mortgage Corporation, Washington Mutual, First Horizon Home Loans, and Bank of the West.

For more information, please visit www.dorado.com.

About Vendor Management Services, Inc.

Vendor Management Services, Inc., a wholly owned subsidiary of The First American Corporation, has positioned itself to become the market leader in real estate transaction fulfillment solutions and full-service vendor management by delivering a fully functional broad-based business-to-business e-commerce application complemented by a highly experienced national customer service center. TheVendorManger(TM) software system, built by VMS' chief information officer, Tom Huffman, represents an open system to all products and services necessary to open and close home mortgages. VMS is also committed to introducing new technology solutions designed to enhance business opportunities for the nation's leading mortgage lenders, home builders, and real estate brokerages.

About First American

The First American Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides automotive, subprime, and direct-to-consumer credit reporting; resident screening; pre-employment screening; property and automotive insurance tracking services; property and casualty insurance; home warranties, investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com.