Product Release Notice
November 2004

The following provides a brief description of some of the new additions and enhancements to the Loan Servicing module which includes two new exciting modules: Adjustable Rate Mortgages (ARM), and Graduated Terms Mortgages (GTM).

Adjustable Rate Mortgages (ARM). This new optional module of The Mortgage Office™ fully automates the tasks associated with the servicing and reporting requirements of adjustable rate loans; including setting up and managing indexes, performing timely payment and rate change calculations, as well as printing all required borrower notices and reports.

Adjustable Rate Mortgage Details Screen

If you're servicing Adjustable Rate Mortgages (ARMs), you should be concerned about widespread overcharges caused by incorrect rate and payment adjustments. In 1989, it was estimated that between 20% and 30% of ARM adjustments performed by servicers are incorrect.

The following list is just a brief description of some of the features available in this new module:

• Comprehensive, easy-to-use system to manage any type of ARM
• Unlimited rate and payment adjustments
• Supports ceiling, floor, initial and subsequent/periodic rate caps
• Ability to have separate rate caps for rate increases and/or decreases
• Unlimited number of indexes with lookback days support
• Rounding factor with ability to round up, down or nearest
• Fully automated carryover accounting
• Payment caps
• Negative amortization cap with automated payment recast
• Payment recasting based on a schedule with stop date support
• Complete rate & payment changes history
• Prints borrower rate and payment adjustment notifications
• All notices are printed using Microsoft® Word and mail-merge
• Prints a complete calculation audit report with detail calculation worksheet
• Reports and notices can be reprinted at any time
• Handles payment adjustments for interest-only ARM
• And much, much more...

Manage ARM Indexes. Use the Manage ARM Indexes grid to view, edit and print index and rate information. It is designed to enable you to enter the latest rate information very quickly and with a minimum number of steps. The design methodology used for the grid is similar to the familiar Windows Explorer. The left pane of the grid contains a list of the indexes, while the right pane displays the rate history of the selected index.

ARM Index Manager

Scheduled Rate & Payment Changes. Use the Scheduled Rate & Payment Changes explorer to edit, cancel or delete ARM modifications as well as to reprint borrower adjustment notices and related reports. A complete historical record of all rate and payment adjustments is available to you at any time.

Rate & Payment Changes History

Reports & Borrower Adjustment Notices. Federal regulations dictate that servicers of Adjustable Rate Mortgages (ARMs) are required to provide borrowers with timely adjustment notices at least once each year in which an interest rate adjustment is implemented without an accompanying payment change, and at least 25, but not more than 120, calendar days prior to the due-date of a payment at the new level. To comply with regulations, The Mortgage Office™ automatically produces the following three types of notices:

• Notice of Rate Adjustment
• Notice of Payment Adjustment
• Notice of Rate and Payment Adjustment

Sample Calculation Audit Report & Borrower Notice

In addition to the borrower notices, several reports are also available to help you manage ARM loans more efficiently. Reports such as Loans With Pending Adjustments, Overdue Calculations, Negative Amortization Cap Exceeded, and others can be generated at any time.

This new optional module of The Mortgage Office™, fully automates the servicing and reporting requirements of loans with predetermined rate and payment changes such as Graduated Payment Mortgages (GPM), Step Rate Loans, or Graduated Payment Adjustable Rate Mortgages (GPARM). Its flexibility in scheduling loan term changes enables you service many new types of loans without much additional work on your part.

Graduated Terms Mortgage Screen

Reports & Borrower Modification Notices. The Graduated Terms Mortgages module also includes a comprehensive set of management reports to aid you in the day-to-day servicing of these types of loans. In addition to the reports, the system also produces all required borrower notices.

Sample Borrower Notice & Wizard

The loan reinstatement calculator and the reinstatement notice have been redesigned to support ARM, HELOC, and any type of loan with scheduled term modifications.

Sample Reinstatement Dialog and Report

Accessible through the loan file, the new reinstatement calculator is design to provide you with easy access to any loan's reinstatement figures. The report shows all calculation details, including an amortization of all payment in arrears and a summary of the amounts due.

Reinstatement Notice. Completely assistant driven, the new reinstatement notice has been upgraded to support the familiar Word-MailMerge interface of the custom notices, including in-Word activated menus to easily insert mailmerge fields.

Reinstatement Notice and Assistant

As always, the reinstatement notice is provided as a fully end-user customizable Word template so that you can easily tailor it to your own needs. Simply use the in-Word popup menu to insert mailmerge fields containing company, borrower and notice specific information.

The Events Journal has undergone a complete re-write which includes the addition of many new features as well as a new user interface. The transaction tracking has been expanded to include more system events and user generated actions.

Silently and behind the scenes, the Events Journal records selected actions that occur in The Mortgage Office™. This audit trail is kept until purged, and keeps track of the type of action, date and time, which account was affected, the source module, and which user generated it. Critical events that may require your attention are clearly flagged.

Events Journal Management Console

Use the Events Journal to keep track of deleted records, manual modifications of historical records and files, when and what type of notices were printed, and more. And since the events are linked to their original files, it’s easy to create or view activity per file such as borrowers, lenders and vendors.

A security feature no system should do without, the Events Journal discourages potential fraudulent activities by the simple fact that everyone is aware that their actions are being recorded and a complete audit trail is created that can be easily reviewed by management at any time.

Reporting. A complete audit report can be printed at any time. To make auditing simpler, this report can be generated by all or a selected user, per source module and by a range of dates. This report should be printed and archived before the Events Journal is purged. Only users with supervisory rights can purge the Events Journal.

Report Dialog Form and Sample Report

The Mortgage Office™ user security system has been completely redesigned and is now centrally administered using the security management console. In addition to user accounts, the design includes the ability to create and maintain unlimited number of security groups.

User & Group Security Management Console

Group and User Permissions. The groups are security accounts that can be granted permission and rights to access the different modules and functionality of The Mortgage Office™. Once created, a group membership is populated by adding members (user accounts) to the group. Belonging to a group gives a user rights and abilities to perform various tasks on The Mortgage Office™.

User Security Dialogs

A user who is a member of one or more groups inherits the aggregate rights of each group in addition to his own. Security groups also simplify the process of managing security and user rights across the entire organization.

It is easier and more meaningful to create logical groups such as Accounting, Administrators, Collectors, etc. that have specific functionality, than to manage user accounts and assign permissions on an individual basis.

A favorite among our users, the Reminders module has been the recipient of many new features. This module, which is included free with The Mortgage Office™ allows you to create reminder notes and assign them to specific users or all users in the system. These powerful reminders can be recurring, linked to loans, and ultimately triggered by events such as date, time, payments and payoffs.

Reminders Management Console

Loan File Notification of Pending Reminders. Use the reminders to alert you and others of loans in foreclosure, client call-backs, recurring events, appointments, follow ups, tasks that need attention or must be completed by a certain date, and more. You can define how often the reminder displays, and link them to borrower accounts so that if a user accesses the loan the reminders are displayed within the file.

Loan File Showing Pending Reminders

Start the Day Right. You can also print a to-do list at any time for all or selected users. This is a great tool to start your day.

Sample Reminders Report

HTML Help. The Mortgage Office™ online documentation has been upgraded to Microsoft® HTML Help, which is the standard help system for the Windows platform. HTML Help offers some distinct advantages over other types of help systems, such as the ability to implement a combined table of contents and index and the use of keywords for advanced hyperlinking capability.

Sample HTML Topic

Although all existing topics have been updated, the following topics have been added or completely re-written to reflect the latest changes in the software:

• User & Group Security
• Loan Servicing / Adjustable Rate Mortgages
• Loan Servicing / Graduated Terms Mortgages
• Web Publishing Central
• Financial Calculator
• Reminders
• Events Journal

Canadian Provinces. In our continuing effort to better support our international clients, The Mortgage Office™ regional settings options have been expanded to support Canadian provinces. Once selected, all dropdown menus which normally display U.S. States will instead display Canadian Provinces.

User Preferences - Regional Settings