Fiserv Lending Solutions & Navy Federal Credit Union: ``Full Speed Ahead'' for eMortgages

Business Wire, Oct 20, 2003

Business Editors

LAKE MARY, Fla.--(BUSINESS WIRE)--Oct. 20, 2003

Navy Federal Credit Union Implements Anytime, Anywhere Mortgage

Closings with Fully Integrated eClosing Workflow Enabled by Fiserv

Lending Solutions' UniFi PRO Mortgage Loan Origination and Processing

System

Fiserv Lending Solutions, a unit of Fiserv, Inc. (Nasdaq:FISV), has announced an innovative partnership with Navy Federal Credit Union of Vienna, Virginia. Through its UniFi(R) PRO Mortgage loan origination system (LOS), Fiserv is providing the credit union with the capability to automate the document preparation and delivery process for electronic-signature-enabled mortgage loan closings. This functionality, currently in live production at Navy Federal Credit Union, is expected to be made available to all UniFi PRO Mortgage software users in a Fiserv software release slated for delivery in the first quarter of 2004.

Navy Federal, a UniFi PRO Mortgage LOS client since 1999, is the world's largest credit union -and the nation's largest credit-union mortgage lender. The credit union has $20 billion in assets and originated nearly $5.1 billion in mortgage and home-equity loans from January 1 through August 31, 2003. With its new "eClosing" solution, Navy Federal can now provide faster and better service to its members. In addition, the credit union can streamline its lending process and reduce the amount of paper required to process and close a mortgage.

"We have partnered with Navy Federal on several occasions, and we are continually impressed with their forward-thinking approach to automation and their commitment to high-quality member service," said John Tenuta, President of Fiserv Lending Solutions. "This collaborative effort, which takes us one step closer to realizing the industry's vision of the fully electronic mortgage, is just the latest success in a valuable partnership."

An "eMortgage" is a mortgage loan that is electronically closed (via "eClosing"), and is sold and delivered by paperless means. During closing, documents can be executed with an electronic signature ("eSignature"). Generating eMortgages has many benefits, including reduced printing/courier costs and simplified version control (documents can be reviewed online before the loan is closed by a settlement agent). Other advantages include fewer changes at the closing table, the convenience of eSignatures, and faster delivery of mortgage loans to investors.

"Navy Federal can better serve its members by simplifying the closing and settlement process, as well as by increasing the quality of our mortgage loans," said Karen Pearson, AVP of Automated Mortgage Systems for Navy Federal Credit Union. "We expect to reduce the overall cost to process a loan - from application to delivery to an investor - by more than $230 per loan, and we plan to use the savings to further improve our productivity and pricing."

The Federal National Mortgage Association (Fannie Mae) released formal eMortgage requirements in June 2002. UniFi PRO Mortgage's eMortgage Workflow facilitates the production of eClosing data and documents that help lenders such as Navy Federal meet the technology's formal implementation requirements.

"eMortgages have tremendous potential to help lenders reduce time, costs and errors in the mortgage origination process, which could help lower the cost of homeownership," said Charlotte Haberaecker, Managing Director of eBusiness Solutions at Fannie Mae(R). "Navy Federal Credit Union has been a leader in using technology to better serve its members, and its early embrace of the paperless mortgage is another example of its forward-thinking approach."

Navy Federal automated the exchange of eSignature-enabled data and closing documents through a fully integrated eMortgage workflow facilitated by Fiserv Lending Solutions' UniFi PRO Mortgage LOS. Navy Federal's lending staff now uses UniFi PRO Mortgage's screen displays and Internet-enabled communications architecture to seamlessly place, update or cancel electronic orders; review loan status; and deliver closing documents. As a result of this integration, manual data entry is eliminated and the integrity of loan data and documents is maintained throughout the loan process.

"Integrated data sharing is helping us reinvent our business processes," observed Pearson. "The immediate electronic exchange of data and documents enables us to respond quickly to changes at the closing table; and it keeps UniFi PRO Mortgage in sync with how the loan actually closed. We don't have to worry about 'pen-and-ink' changes that are not reflected in the system. In addition, we're positioned to deliver loans more quickly and profitably to the secondary market."

Loan data in the UniFi PRO Mortgage database are automatically passed to Navy Federal as an XML file, which enables fast, standards-based information exchange. In addition to being used to manage the packaging and delivery of electronic closing documents, loan data are used to execute specific actions - such as electronically notifying settlement agents that closing documents have been delivered.