Product Release Notice
May 2005

Introducing The Mortgage Office™ Version 1.8.60
In our continuing effort to provide you with the most technologically advanced and easy-to-use loan servicing and origination software found anywhere, Applied Business Software, Inc. is pleased to announce the newest release of The Mortgage Office™. This update contains exciting new features and enhancements that will benefit you and your business.

You may download the update from this site, or if you prefer to receive a CD-ROM by mail, we require that you fill out, sign, and submit a Software Update Request form via U.S. mail or Fax. The updates will be processed in the order received. As always, we welcome your comments and suggestions regarding the quality and usefulness of our products. Your comments help us improve our products to better meet your needs.

Best Regards and thank you for your continued support of The Mortgage Office™.

ABS Software Development Team

This new and exciting module is an easy-to-use, fully integrated document imaging and management system that enables you to capture paper and electronic documents from disk or directly from any TWAIN-compliant device such as scanners and cameras, and store them in one location, and most importantly attach them to specific loans for easy retrieval at any time. And best of all – It’s free!

Easily attach relevant documents such as PDF files, spreadsheets, letters, contracts, pictures – anything you need to track so that everything is in one place, and stop the frustrating and time consuming task of searching for loan-related documents.

Sample Attachment Screen with Dialog Windows

Find Information Quickly and Easily. You may now pull all loan-related information together in one place, no matter where it came from and easily attach documents and files to loans from disk or directly from any TWAIN-compliant device such as scanners and cameras.

Benefits. The management and attachment of digital documents to specific loan files has many benefits that can appreciably improve your business efficiency and give you a competitive advantage. Here are just a few:

• Attach documents and files to loans from disk or directly from any TWAIN-compliant device such as scanners and cameras
• Maintaining and managing all loan-related documents together in one place will streamline your business processes and increase productivity
• More efficient distribution and control over information, files and records throughout the organization
• Expedite business processes by allowing instant access to information
• Greater collaboration within and among departments and offices
• Enhanced security for documents, files and records
• Easily automate back up of documents, files and records for disaster recovery
• Share documents with colleagues while protecting confidential information
• E-mail documents and files instantly
• Access documents remotely via the Internet using Microsoft Terminal Server or similar technology
• Improved efficiency in the storage, retention and disposition of documents and files
• Simplify the life-cycle management of business records; enforce a consistent, organization-wide records policy, and reduce the costs commonly associated with regulatory compliance

You may now include your company's logo in selected reports and statements. Gain a competitive advantage and enhance your company's image by personalizing loan servicing reports and statements with a professional corporate logo.

Sample Statement with Company Logo

With increasing competition it's more important than ever to set your company apart from the crowd. Statements and reports displaying your company's logo will satify your clients and help you build brand awareness.

The Consumer Credit Reporting module of The Mortgage Office™ enables you to report borrower credit information to the four major consumer credit agencies: Equifax, Innovis, Experian and TransUnion. This new optional module integrates seamlessly with the Loan Servicing module, providing an affordable in-house software solution.

General Account Information Screen

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

• Seamless integration with the Loan Servicing module avoids duplication of data entry.
• Reports to all consumer credit agencies.
• Comprehensive HTML on-line help and documentation.
• Complete support for Metro-2 format including appendages.
• Supports all status codes, type codes, comment codes, 24-month payment profile history and more with easy-to-use dropdown menus.
• Thorough data validation ensures compliance with strict credit bureau guidelines.
• Generates detailed Audit Report for each transmission.
• Generates an Errors and Exemptions Report to help you identify and correct mistakes.
• Ability to create a test-file to be used during the account approval process.
• Assistant-driven Metro-2 file generation with ability to export to a location of your choice.
• Verifies account compliance with F.C.R.A. requirements and regulations for accurate reporting.

Assistant-Driven Metro-2 File Generation. The Metro-2 Reporting Assistant guides you through the necessary steps to generate a Metro-2 compliant file. During the generation process, the assistant gathers the information already stored in your loan and payment history files to create the export file which is ultimately delivered to the credit bureaus of your choice.

Metro-2 Reporting Assistant

Detailed Audit and Errors & Exemptions Reports. To help you ensure that only accurate credit histories are reported to the consumer credit agencies, the Metro-2 export assistant validates the information gathered during the file generation process and produces the Export Audit Report and an Errors and Exemptions Report.

Sample Reports

The Federal Trade Commission (FTC) is charged with enforcing and interpreting the Fair Credit Reporting Act. As such, they issue staff opinion letters, press releases and consumer educational materials. More information can be found on the Internet at www.ftc.gov/os/statutes/fcrajump.htm .

Enhancements to the Loan Aging and Trial Balance Report allow you to define your own custom aging periods. Additionally, new charting features provide a visual representation of your loan aging. The charting includes numerous options that allow you to customize the look of the chart. Choose from pie or bar charts, 3 or 2 dimensional, and complete control over color schemes. The "preview" option allows you to view the report on screen first

Loan Aging Trial Balance

Next Generation Reports with Integrated Charts. We strive to provide our customers with the easiest to produce, yet most advanced reporting available....

Sample Chart Options Window & Reports

Keep your ARM & HELOC index rates up-to-date with this new web service available free-of-charge from Applied Business Software.

Applied Business Software now compiles 5-years of historical values for the most widely used indexes for Adjustable Rate Mortgages (ARMs). These historical index values are regularly updated and offered free of charge to our licensed users of the ARM (Adjustable Rate Mortgages) module for download from within The Mortgage Office™.

Download Index Rate History Screen

There are many possible ARM indexes. Each one has distinct market characteristics and fluctuates differently. At the time of this writing, we offer for download the following commonly used indexes:

• WSJ Prime Rate
• 11th District Cost of Funds (COFI)
• FNMA 1-Month LIBOR (1, 3 & 6-Month, 1-Year & 12-Month Avg. of 1-Month)
• CMT 3-Month (Daily, Weekly & Monthly)
• CMT 6-Month (Daily, Weekly & Monthly)
• CMT 1-Year (Daily, Weekly & Monthly)
• CMT 2-Year (Daily, Weekly & Monthly)
• CMT 3-Year (Daily, Weekly & Monthly)
• CMT 5-Year (Daily, Weekly & Monthly)
• CMT 7-Year (Daily, Weekly & Monthly)
• CMT 10-Year (Daily, Weekly & Monthly)
• CMT 20-Year (Daily, Weekly & Monthly)
• Secondary Market CD 1-Month (Daily, Weekly & Monthly)
• Secondary Market CD 3-Month (Daily, Weekly & Monthly)
• Secondary Market CD 6-Month (Daily, Weekly & Monthly)

NOTE: Applied Business Software makes every reasonable effort to present complete, accurate information, but assumes no liability for errors or omissions.

The Lines of Credit (LOC) module has been enhanced to allow you to select on a per-loan basis whether or not to compound finance charges and if amounts held in trust (escrow) are to be considered when calculating finance charges.

Sample snippet from the Lines of Credit servicing tab

Four new custom reports have been added to the download section of The Mortgage Office Online™.

• Lender Funding Analysis Report (Recordset) (1)
• Lender Funding Analysis Report (Collection) (1)
• Lender Payment Distributions Statement
• Loans Statistics Report

Document Maintenance has been enhanced...in both Sales of Existing Note and Line of Credit transactions to enable you to easily share documents across different types of transactions without duplication. For example, you can now designate a document to be used in both Sales of Existing Note and Line of Credit transactions.

Loan Origination Document Maintenance

This is effortlessly accomplished by editing the document's properties and selecting one or more transaction types from the list. From now on, the document will only appear on the selected transaction types.

The Escrow Administration module, which fully automates the tasks associated with maintaining escrow accounts on behalf of borrowers, has been enhanced to include the ability to view, edit, cancel or delete pending modifications created during the escrow analysis process.

Loan Servicing Tab - General

The Collateralized Mortgage Obligations now supports alternate payer information records for the holder file. These alternate records are necessary when the information that must be reported to the IRS differs from the information contained in the holder file. The alternate payer reporting information is used when printing IRS Form 1099-INT.

Sample Holder Tax Information Window

This section includes minor enhancements, modifications and corrections included in this release of The Mortgage Office™. Many of these are the result of suggestions made by customers and help us improve The Mortgage Office™ to better meet your needs.