Product Release Notice
October 2005

Introducing The Mortgage Office™ Version 1.8.70
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.

Thank you for your continued support of The Mortgage Office™.

Best Regards,
ABS Software Development Team

Borrower & Lender Charges. The loan charges have been completely redesigned to improve performance and usability. Additionally, two new options, Deferred and Assess Finance Charges, were added to accommodate HELOC and Line-of-Credit loans.

Loan charges is a sophisticated module that enables you to account for, and track additional charges and advances made to a loan. In addition you can also assess finance charges on charge balances as well as make partial payments and adjustments at any time. Charges can also be advanced on behalf of others and the system will track and properly distribute all amounts paid to the appropriate sources.

Sample Loan Charges & Edit Windows

Deferred. Charges designated as deferred are itemized in the billing statement and marked with a "D". Unpaid deferred charges are never listed as past due in any future billing statements.

Assess Finance Charges. Check this option if you want finance charges assessed on this charge during billing. If left un-checked the charge will be itemized in the billing statement but it will not accrue any finance charges.

Loan Charges Summary and Detail Reports. These two new reports present a list of charges either in summary or detail format. The detail report enables you to audit all payments and adjustments made to any charge.

Sample Loan Charges Summary and Detail Reports

Lender Statements. The new Print Net Rate & Payment option added to the lender statement assistant allows you to report net lender payment amount and interest rate (minus lender servicing fees) instead of gross.

Print Lender Statement Assistant

Notification of Electronic Deposit. The lender's Notification of Electronic Deposit Notice assistant has been enhanced to support various envelope window sizes.

Notification of Electronic Deposit Assistant

Partnership Servicing is the recipient of a complete re-write and many new features and enhancements. The following provides a brief description of some of these features.

Partnership Servicing Sample Screens

Highlights:

• Easy-to-use, centralized state-of-the-art user interface.
• Support for partner's minimum investment requirements with alert reports.
• Monitoring and reporting of investment limitations of Employee Retirement Income Security Act of 1974 (ERISA) partners.
• Internal Rate of Return (IRR) is now calculated for each partner and optionally reported on periodic partner statements.
• Partner Categories and preferred e-mail formats.
• Ability to process partner disbursements and withdrawals via ACH/EFT (electronic funds transfer).
• Easily reverse or void any transaction.
• Easily re-print lost partner checks.
• Limit the viewing of partnership or partner history transactions by range of dates.
• Ability to search partnership or partner history by any field.
• Ability to enter new partners during transaction entry in a single step.
• Write letters to partners using Microsoft Word™ mail-merge capabilities.
• Fully integrated document imaging / attachment for partner documents.
• Automatically elect to create attachments when printing partner statements for archival and easy retrieval.
• Partner statements may now be printed, emailed or both.
• Option to designate individual partners as ERISA investors.
• Seamless Letter Writing Assistant support and integration.
• Electronic Notifications of Deposit can be printed, emailed or both.
• Much, much more…

Complete User Interface Re-Design. All entry forms and reports have been completely redesigned. You may now preview, print, e-mail or export to disk any of the reports generated by this module.

Internal Rate of Return (IRR). Have you been losing sleep figuring out the best way to report the individual periodic investment yield to your partners? Stop tossing and turning and update to the latest version of The Mortgage Office™. The partner statements now include the partner's Internal Rate of Return (IRR) during the statement period.

Sample Top-Right Corner of Partner Statement

The IRR is a mathematical formula and is widely used to calculate the return of an investment containing a series of irregular inflows and outflows of cash.

Partnership Statement. In addition to the regular partner and partnership profile information, the partnership statement now provides easy-to-understand charts.

Sample Partnership Statement

ERISA Plans Ownership Report. For those of you who accept funds from employee retirement plans, this new report and tracking tool can help you monitor and comply with the investment limitations set forth in the Employee Retirement Income Security Act of 1974 (ERISA).

Sample ERISA Report and Dialog Window

ACH and Tax Payer Information. Partnership Servicing now supports alternate payer information records for each partner file. These alternate records are necessary when the information that must be reported to the IRS differs from the information contained in the partner file. The alternate payer reporting information is used when printing IRS forms.

Sample Tax Payer Information and ACH

Unlike our traditional shares-based partnership model, this new optional module supports partnerships in which the partner's ownership and distribution is determined by the total capital invested instead of the number of shares owned.

Sample Screens

In the capital-based model, there is a “soft” link between the partners' ownership and the underlying loan pool collateral. Partner income and partnership distributions are determined by a selected target rate of return and the amount and timing of each partner's beginning capital, contribution and withdrawals for the period.

This model also includes all of the features available in our more traditional shares-based model, such as Microsoft Office integration, electronic transfer of funds (ACH/EFT), document imaging and attachment support.

ABS and AC solutions have partnered to bring you more training on and utilization of The Mortgage Office™.  Amy Campos, owner of AC Solutions, has over ten years experience in the computer field as well as over 7 years experience in supporting software developed by ABS. These two areas of knowledge are combined with her real in-house experience among mortgage professionals. AC Solutions is offering a valuable service that will help you and your company master every aspect of The Mortgage Office™.

This add-on module to the Loan Origination module includes a complete set of documents for Home Equity Lines of Credit (HELOC). The documents are authored by one of the most prominent attorneys in our industry, Dennis Doss, Esq.

Included in the set are the following documents:

	Important Terms (Initial Disclosure)
	Loan Agreement
	Long Form Deed of Trust and Assignment of Rents
	Customer Declaration of Suitability
	Customer Declaration of Income
	Notice of Right to Cancel (Initial Credit)
	Notice of Right to Cancel (Increase Credit)
	Billing Rights Notice
	Loan Program Options
	Loan Servicing Agreement
	Cash Loan Request

Full integration with HELOC Loan Servicing module. HELOCs originated in our system are fully supported in our HELOC Loan Servicing module. The HELOC Loan Servicing module automates functions such as finance charge assessment, monthly billing statements, unlimited draws per month by multiple lenders, and much more.

Discounted Document Licensing Fee for ABS Customers! Additionally, we have negotiated special document licensing fees from Mr. Doss for ABS customers. Call us for more details.

Mr. Doss may be contacted at:
Doss & Page, Lawyers
1920 Main Street, Suite 210
Irvine, CA 92614
Phone: (949) 752-5370

Early detection of a damaged or corrupted database is essential. Databases may become damaged due to missing Microsoft service packs, faulty file servers, improper program termination, power outages and more. This new tool compares your database structure to an internal model and reports any discrepancies found.

The Mortgage Office - Database Analysis Report

The Tax Forms Management & Printing module has been updated to reflect the Internal Revenue Service (IRS) latest reporting changes for tax year 2005.

Tax Forms Management & Printing

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.