Principal Residential Mortgage Helps Brokers Find ``Best Fit''

Business Wire, April 23, 2003

Business Editors

DES MOINES, Iowa--(BUSINESS WIRE)--April 23, 2003

While Other Lenders Reduce Services & Options, Principal Residential

Mortgage Offers Both Freddie Mac's Loan Prospector & Fannie Mae's

Desktop Originator/Desktop Underwriting to Broker Partners

Principal Residential Mortgage, Inc.(R), the residential mortgage company of the Principal Financial Group(R), is offering free "Best Fit" training seminars to assist mortgage brokers, loan officers and other mortgage company employees in using automated underwriting systems. The half-day sessions will equip mortgage professionals to run Freddie Mac's Loan Prospector (LP).

"Principal Residential Mortgage is committed to giving mortgage brokers and loan officers as many options as possible in serving their clients' mortgage needs. We recognize that automated underwriting is here to stay and want to ensure that the brokers we work with know how and when to run the LP engine or Fannie Mae's DO/DU engine. Together we can unlock the doors to home ownership for more families in more neighborhoods," said Jackson Nafziger, vice president of Wholesale Lending, Principal Residential Mortgage.

By using LP or DO/DU, mortgage professionals can receive credit evaluations 24/7 through the Web. After inputting basic financial information about a prospective buyer, the systems return a credit evaluation within minutes. The evaluation indicates what additional documentation should then be submitted, along with the LP or DO/DU result, to Principal Residential Mortgage for an approval decision.

"Automated underwriting empowers brokers and loan officers to handle underwriting themselves," noted Nafziger. "It's instant gratification."

With automated underwriting, a loan originator can work with a client, even from the client's home, and run LP or DO/DU. The system will immediately analyze the credit risk of that particular client and establish additional documentation needs. "It's easier, cheaper and faster than traditional, paper-based underwriting," commented Nafziger.

Freddie Mac will assist with these training sessions through the support of a certified LP Training Specialist. "We're thrilled to partner with Principal Residential Mortgage in offering their 'Best Fit' seminars," said Tricia McClung, vice president of Loan Prospector --Freddie Mac. "We want to help mortgage professionals become LP experts so they'll be able to expedite the underwriting process. With our automated system, brokers and loan officers can reduce the mortgage application and closing time from weeks to days, making them look great in the eyes of the home buyer."

Mortgage brokers and loan officers can schedule training through their Principal Residential Mortgage branch office, or check our Web site, www.principal.com/wholesale, to learn when the next session will be offered in your area.

About the Principal Financial Group

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 $111.1 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 service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

(2)CFO Magazine, April/May 2002, based on total plans served in 2001 by insurance companies, banks and investment firms.

(3)As of December 31, 2002.