FIS Loan Origination (FLO) Driving Efficiency for All of Your Loan Origination Needs. Ronny Chapman Director, FIS Portfolio Lending Solutions

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1 FIS Loan Origination (FLO) Driving Efficiency for All of Your Loan Origination Needs Ronny Chapman Director, FIS Portfolio Lending Solutions

2 What is FLO FIS Loan Origination (FLO) is a browser-based Commercial, Consumer, and HELOC community bank LOS. Complete integration to FIS Servicing Solutions: BancLine, BancPac, Bankway, IBS, HORIZON and MISER (integration to all systems will be complete in 2010) Utilizing CSi Document Technology Compliance and risk based Dynamic documents Warranted document selection logic Unlimited customers, collateral, signers Wide range of 3rd party integration Consumer and Commercial Credit HMDA reporting CRA reporting UCC filing OFAC & Identity Verification 2

3 What Is FLO Strategically positioned Portfolio solution Strategic product in conjunction with other FIS LOS allows focused product investment Strategic product after Metavante acquisition Self contained team Responsible for development, support, implementation and training Domain based experience Every member focused on FLO 3

4 The Loan Continuum Defines the needs for which we build technology Is our Product Mission Statement Drives product development Base for knowledge Will guide product partnerships in some cases InterConnect Rule Engine HMDA / CRA Electronic UCC Filing Application Commercial Consumer Credit Review Underwriting Analytics Pricing Approval Automated Decisions Content & Compliance Warranted Documents Exceptions Lien Perfection Closing BancLine BancPac Bankway IBS HORIZON MISER Loan Review Administer Monitor Risk Portfolio Mgmt Composition Concentration Quality Risk Servicing Core Processing 4

5 FIS Lending Solutions Suite Loan Origination Studio Full secondary mortgage support Includes Desktop Underwriter (DU)/ Loan Prospector (LP) integration Pipeline Management Loan Pricing Worksheet Workflow capabilities LoanVantage Commercial underwriting, analysis and stress testing Provides full financial analysis of commercial loan prospects and existing loans Peer and RMA Comparison analysis Stress Testing Cash flow analysis FIS Loan Origination (FLO) Internet Direct FIS Lending Solutions Loan Origination Studio (LOS) LoanVantage 5

6 FIS Lending Solutions Suite Internet Direct Unassisted channel (home) consumer loan application capabilities including mortgage, home equity and consumer Branded to OLB presence Credit integration Integration to both Loan Origination Studio and FLO FIS Loan Origination (FLO) Internet Direct FIS Lending Solutions Loan Origination Studio (LOS) LoanVantage 6

7 FLO Infrastructure Browser based delivery requires no workstation deployment Only requirements are Internet Explorer and Adobe Reader Stateless connectivity Provides capability to process loans at any workstation across the enterprise Data persistence across transactions provided by data storage at: Customer Collateral Transaction Data behavior control levels (defaults, security, values) Global, Region, Branch, Product, User, Collateral Enterprise-wide printing Historical storage of Transactions, Customers, and Collateral 7

8 FLO by the Numbers 25 new clients in 2009 Current states: Texas, Alabama, Tennessee, Oklahoma, Kansas, Minnesota, Illinois, Indiana, Florida, South Carolina, Georgia, Virginia, North Carolina, Minnesota MISER availability (early stage) in addition to BancPac, BancLine and HORIZON 2010 client outlook Bankway and IBS clients currently contracted in Mississippi, Wisconsin and Pennsylvania 24+ scheduled installations 50+ installed / contracted clients Extended support hours available beginning December 1st System Management Console (SMC) rollout complete LOS Integration and combination agreement Unit period calculations for traditional mortgage Loosened DSL restrictions Clients range from de novo to 3 Billion 8

9 FLO is Service Delivery-Based Monthly updates include compliance and defect repair Two major releases per year: May and October Complimentary training for all significant releases Support submission available directly from software Enhancement request submission from every page in FLO Online documentation, release notes and Quick Reference guides No hardware or workstation requirements 9

10 Consumer Collateral Support Aircraft Assignment of Deposit Account Documented Vessel Fixtures Household Goods Investments Life Insurance Mobile Home Motor Vehicle Non Titled Personal Property Non Purchase Real Estate Portfolio Mortgage Construction Real Estate Unimproved Real Estate Recreational Vehicle Watercraft 10

11 Commercial Collateral Support Accounts Receivable Aircraft All Assets Extracted Chattel Paper Construction Real Estate Commercial Real Estate Residential Real Estate Assignment of Deposit Account Documented Vessel Equipment Farm Equipment Farm Products Fixtures General Intangibles Instruments Inventory Investments Life Insurance Mobile Home Motor Vehicle Non Titled Property Standing Timber Watercraft 11

12 FLO Supported Entities Individual Sole Proprietor General Partnership Limited Partnership Limited Liability Partnership Limited Liability Company Corporation Trust Association 12

13 FLO Roles and Application Acceptance Multiple roles allow capability controls based on user need. Full access allows customer selection and processing of all phases: Application, Closing and Denial. Lock to application provides full application capabilities including real estate early disclosures. Lock to collateral list provides access only to authorized collateral types via product limitations. Officer mode provides no processing capabilities with access to: Transaction Status Key loan statistics: LTV, debt to income, interest, payments, etc Customer and collateral Information Ability to enter free form notes Loan quote Retrieve credit report View prepared documents Integration to Internet Direct provides easy to use, common application for both FLO and LOS for both assisted and unassisted channels. 13

14 FLO Transaction Processing Loan assembly wizard Progresses user through workflow based on transaction product, collateral, entity and phase. Easy to follow navigation using Next and Previous buttons moves user through process while also providing quick navigation anywhere within transaction. Work path driven by entry of customer, collateral and term information followed by document preparation Products do not drive navigation or documents; may be changed at any time All transaction details may be altered at any point in transaction eliminating points of no return Business or Consumer / Open or Closed / Application, Closing, Denial / HMDA Reportable Available navigation points for credit bureau, ID Verification and OFAC scan No requirements to manually save data: all data is saved automatically to provide quick exit from transaction. External documents and content may be uploaded to transaction for access by authorized users. 14

15 Customer Selection Customers selected by role to transaction Commercial: Borrower or Guarantor Consumer: Borrower, Co-Signer or Guarantor Customer search includes all customers on servicing system regardless of having originated a transaction in FLO Customers added to core outside of FLO are imported automatically. Single click OFAC and ID Verification integration when adding new customer Signer establishment on same input page Nested signers Business owned by business Single click access to credit on all selected customers 15

16 Collateral Selection Collateral is a FLO subsystem All collateral previously entered for entities is available for single click cross collateralization Archive history retains details of any collateral released Supported Collateral ownership roles Hypothecator, Collateral Co-Owner, Secured Guaranty, Principal Resident / not an owner Data entry in Q&A format Flood certification integration ZIP code integration defaults recording jurisdictions 16

17 Loan Terms Repayment structures Installment, Balloon, Single Payment, Principal Plus, Demand, ARM, Irregular, Skips, Pickups and Free Form Construction Construction to Permanent Precedent interest only Fee selection Default fees by product or collateral Payee, Collection, Amount provide modification controls Fee s fully default Good Faith Estimate and HUD Payee can control service provider disclosure Disbursement s outside of borrower Credit life and disability selection Escrow (commercial and consumer) 17

18 Document Selection and Preparation Warranted document selection Client specific document controls Custom document capabilities on request Included commercial and consumer CIP package Include documents by rule: allows inclusion of documents based on transaction details Regardless of document volume all data is collected by transaction, customer and collateral. This methodology significantly reduces entry pages. All input fields allow customization of Label, Help, Required Entry, Launch links & Value Lookup 100% letter size and PDF-based Highlighting presents all data in an easy to find visual manner Integrated and direct to printer distribution Watermarks 18

19 Policy Enforcement and Controls Online transaction checklist available anywhere in transaction ensures loan conforms to bank policy. Some of the options included are: Loan to Value Debt to Income Fee tolerances Interest rate allowance Lending Authority Market area Based on user authority, transaction may be halted on checklist failure If user has authority to bypass failures, audit events recorded Progressive rules 19

20 MISER Integration Highlights Customer database replication provides access to all core customers regardless of previous transactions. Search by name, Tax ID, address, telephone number, account number, transaction key Integration of Loan, Customer, Customer to Loan relationship, and collateral Core data values are embedded in FLO Rate table integration prevents maintenance of multiple rate tables. Adherence to core security controls Address and Name maintenance (on some cores) Dynamic fields automatically added to data collection (on some cores) FLO field default behaviors extend to core data elements. 20

21 Key Commercial Benefits Separate Business Loan Agreement defines FI to Customer relationship Governs all loans Specifies Events of Default Reporting Periods Covenants Other obligations Unlimited reporting periods, type and remittance 24 standard covenants including Net worth, Cash Flow, EBITDA, Profitability, Debt to Income, Leverage and more Multi-Business Transactions Business owned Business Application, Closing and Denial phase support Access to commercial bureau products Experian Small Business Equifax Small Business Exchange Dun and Bradstreet Moody s Custom covenant capabilities Add custom covenants Covenant rider provides negotiating ability Optional enforcement 21

22 FLO 2009 Regulatory changes galore RESPA High Priced Mortgage Truth in Lending Adjustments Flood certificate automation Calculation engine upgrade New credit bureau engine HMDA integration Over 1,000 modifications, defect repairs and enhancements! 22

23 FLO 2010 Outlook Potential for continued, significant regulatory changes, particularly if Consumer Protection Agency enacted. Combination of RESPA and Reg Z Additional language adherence Loan testing will become prevalent Rationalization of FIS and Metavante products FLO positioned as go-forward portfolio product Good news on the secondary mortgage front with Loan Origination Studio Q1 rollout of Internet Direct LoanVantage integration BPO (Business Process Outsourcing) establishment Adobe custom document engine FLO Attorney Express based on feedback Escrow re-write available in May Electronic signature 23

24 Thank You Ronny Chapman, Director, FIS Portfolio Lending Solutions