Principal Residential Mortgage, Inc. Enhances Online Capabilities for Current Home Loan Customers

Business Wire, March 12, 2002

Business Editors

DES MOINES, Iowa--(BUSINESS WIRE)--March 12, 2002

New Online Enhancement Makes Home Purchase and Refinance

Fast, Easy & Convenient for Customers

Principal Residential Mortgage, Inc., the residential mortgage company of the Principal Financial Group(R), announces extensive enhancements to its customized online refinancing service for current loan customers at the Principal Residential Mortgage Home Loan Service Center (www.principal.com/mortgage).

Previously, loan customers received automatic notification of personalized potential refinancing savings options after logging on to the Home Loan Service Center. Today, customers may also begin a customized application process to purchase a new home, or apply for additional refinancing options online.

"We present refinancing options that could save our customers money on their monthly mortgage payment based on their original loan information and their current interest rate compared to current market rates," said Charlotte Catalfo, executive vice president of production and operations at Principal Residential Mortgage, Inc. "Customers can also begin the purchasing process with our new online enhancements."

Customers are guided through a mini interview process online, which assists in determining the best financing options to help them meet their financial goals. Customers are then given a recommendation of the option that is the best fit based on answers provided during the interview.

"By reviewing loan application information we already have in the system and then allowing the borrower to determine his or her greatest priority, we can tailor financing options specific to the borrower's needs," said Tim Curtis, director, Principal Residential Mortgage Direct. "With this streamlined process, customers could potentially see several loan offers based on their current situation."

Once customers select a loan that best fits their needs and make necessary changes to their personal information, a loan counselor, processor and closer are assigned.

"We provide the customer the name and contact information for those involved in the processing and closing of the loan," said Catalfo. "This helps to ensure peace-of-mind with our customers as they need, or in the event they need, to ask questions and get more information."

A few operational procedures for a customer's refinance still need to be completed through the U.S. Mail. However, the long-term goal of the project is to eliminate the need for manual processing by electronically creating and delivering all documents used when originating, underwriting and closing a loan. Subsequent phases will include additional loan products, including a home equity loan offering.

Currently, this financing option is only available to current customers of Principal Residential Mortgage. In addition, several other services are slated to be added to the site, including:

-- Ability to float the interest rate on their loan online before they lock in
the final, guaranteed interest rate

-- Home equity loan products through Principal Bank

-- Enhanced reporting for borrowers throughout the loan process

-- Additional email subscription services, expanded search capabilities, and an
enhanced glossary

Applications generated through these online services are coordinated through Principal Residential Mortgage Direct, the company's inbound call center which helps new and current customers with their mortgage needs via telephone and Internet.

Principal Residential Mortgage, Inc., has a rich heritage in the mortgage business dating back more than six decades, and is one of the premier full-service lending institutions nationwide, servicing billions of dollars in home loans for hundreds of thousands of customers.

The Principal Financial Group(R) (The Principal (R))(1) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and mortgage banking through its diverse family of financial services companies. More employers choose the Principal Financial Group for their 401(k) plans than any other bank, mutual fund, or insurance company in the United States(2). A member of the Fortune 500, the Principal Financial Group has $120.2 billion in assets under management(3) and serves some 13 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

(1) "The Principal Financial Group" and "The Principal" are registered trademarks referring to Principal Financial Group, Inc.

(2) CFO Magazine, April/May 2001, based on total plans served in 2000 by insurance companies, banks and investment firms.

(3) As of December 31, 2001.