A FAIR ISAAC WHITE PAPER TMO (The Mortgage Originator) product overview Automate Service Connectivity September 2004 FOR MORE phone from US worldwide email web INFORMATION 1 800 999 2955 1 612 758 5200 info@fairisaac.com www.fairisaac.com
Table of Contents BridgeLink TM E-services for TMO...2 Connecting Mortgage Originators to Service Providers... 2 TMO Powerful Features with Flexible Functionality...4 Loan Origination... 4 Loan Processing... 4 Loan Submission / Underwriting... 4 Loan Closing... 4 Reporting... 5 BridgeLink Origination E-services...5 BridgeLink, XML Technologies...6 Technical Overview...7 BridgeLink Security...7 TMO Consultancy and Support Services...7 Fair Isaac s Product and Service Offering...8 Mortgage Banking Solutions... 8 Fair Isaac s Market Solutions...9 Originations & Underwriting... 9 Customer & Account Management... 9 Fraud Management... 10 Risk Management... 10 Bill Review... 10 Claims Processing... 11 Customer Marketing... 11 Collections & Recovery Solutions... 11 About Fair Isaac...12 2004-2005 Fair Isaac Corporation. All rights reserved. 1
BridgeLink TM E-services for TMO Connecting Mortgage Originators to Service Providers For nearly 20 years, Fair Isaac s mortgage lending solutions have been relied upon as mission-critical enterprise systems for leading mortgage bankers. Twelve of the top 100 retail lenders use Fair Isaac s TMO (The Mortgage Originator) software system as the system-of-record, closing over three hundred billion dollars in loan volume in 2003. BridgeLink Network Industry-wide Connectivity TMO remains a powerful and successful solution as it was built to evolve. Through the BridgeLink platform Fair Isaac provides an industry-wide vendor management network to all its TMO customers. No other solution on the market offers a single point of bi-directional connectivity to multiple third-party vendors and services direct from the desktop. Why Connect to BridgeLink? The BridgeLink network is Fair Isaac s internet-based e-commerce network that automates the ordering of mortgage services by lenders and transfers resulting data directly into the lender s core software systems. To date, 1,400 lenders and services provider firms are members of the BridgeLink network. More than 30,000 processors, brokers, agents and other individuals process service referrals on the BridgeLink network. The BridgeLink e-services network addresses one of the most prevalent issues in the mortgage industry today: efficiently connecting mortgage loan processing systems to third-party services. Loan processing is dependent on many outside agencies and the current methods of data transfer and integration continue to be fragmented and inefficient. Many benefits are gained from this e-commerce solution. Why Use TMO TMO is a complete loan origination application that automates all necessary tasks from loan application through loan closing. The TMO loan closing module incorporates intelligent logic to ensure consistently accurate closing documents. Documents can be securely and reliably delivered to any party with internet access, whether it is a branch or closing attorney. The TMO toolkit provides powerful capabilities to fit your business needs and accommodate regulatory compliance demands. Benefits of TMO / BridgeLink Automate the entire origination process for greater efficiency. Streamline and accelerate the loan approval process. Eliminate the re-keying of data to reduce errors and improve data integrity. Timely underwriting decisions increase profits for loan officer and company. Reduce overall costs by eliminating or reducing: Phone calls and faxes Overnight packages Postage and courier costs 2004-2005 Fair Isaac Corporation. All rights reserved. 2
Results posted directly to your TMO system. Prompt responses are returned without interrupting your normal workflow. XML web services connectivity. BridgeLink connectivity supported by Fair Isaac. Reliable and scalable platform. Complete flexibility and control. Multiple connections to service providers. Workflow processing. Vendor management metrics. Activities tracking and recording. 2004-2005 Fair Isaac Corporation. All rights reserved. 3
TMO Powerful Features with Flexible Functionality TMO brings user efficiency and processing performance to every step of loan origination through closing and settlement: Loan Origination Flexible product pricing: Product and pricing definitions are simple to set up in TMO. Immediate lock-ins and document generation: Lock in the latest rates and points, and then enter data to generate TIL/GFE and other documents. Automated auditing: Loan data is audited online according to pre-defined investor requirements. Conformity with industry standards and corporate policies is also ensured. Credit: Request and receive credit information through TMO s EDI credit link loan application information pre-fills from the credit report. Loan Processing Automated verification form generation: Unique packet logic produces all documents required by each loan type and location. Loan tracking: Information screens and tracking reports help loan processors and management keep track of pipeline and processing status. Loan Submission / Underwriting Guideline re-evaluation: All required information, including investor and institutional criteria, can be reevaluated for each loan according to industry-standard guidelines. Review: Conventional transmittal summary, FHA, MCAW, FHA 203k maximum mortgage worksheet, VA loan analysis and IRRRL worksheet, plus other appropriate documents are generated only after all calculations are reviewed online by the system. Online underwriting: Information for your specific underwriter conditions and approval is entered and updated directly on your computer screen. Loan Closing Loan re-calculation: TMO automatically re-calculates all pertinent numbers every time the loan is accessed including improved and unimproved tax amounts, interest amounts, remaining fees, PMI, REG Z totals and escrows using the aggregate escrow accounting method. This assures closing information is accurate prior to printing. Closing screens: The system guides you through the entire closing process. Users can select data for review and request specific closing information through an interactive process. Closing document package: Centrally defined document profiles ensure that you include all necessary documents in the closing package for any loan type or location. Integrate your specific closing instructions and other documents into TMO s closing packets. 2004-2005 Fair Isaac Corporation. All rights reserved. 4
Reporting TMO provides management and processors with comprehensive reports throughout the production cycle. Standardized forms and reports: Up-to-date documentation, based on current regulations and state requirements, is generated by the system. Management reports provide detail and summary information during each stage of the loan process. Customized forms and reports: Forms and reports can be quickly and simply customized to meet your specific needs. Reports can be customized using TMO report writer, AS400 query tool or ODBC (PC) report writer. BridgeLink Origination E-services The BridgeLink e-services network offers a multitude of transaction support services for the complex origination process within the mortgage lending industry. BridgeLink e-services provide: An extensive e-commerce network of mortgage service providers Direct XML integration with service provider systems Automated requests for service and posting of results directly to your system Browser interfaces for reporting Encryption and authentication Flood Determination / Certification Determining if a property is in a Special Flood Hazard Area (SFHA) and whether the community that the property resides in is part of the National Flood Insurance Program (NFIP) is essential to the overall details of the loan. Mortgage Insurance Processors and underwriters need the ability to submit electronic requests for MI Certificates for conventional loans to Mortgage Insurance companies. This solution provides benefits that include improving efficiency by reducing re-entry of data, minimizing paper processing and enhancing data integrity. Document Delivery Automate the process of sending closing packages via express mail. Respond to requests instantly and send updated information to and from an attorney at a moments notice. Lenders reduce the need to delay closing due to incorrect information. Fannie Mae Desktop Underwriter and Freddie Mac Loan Prospector Timely and accurate underwriting results are critical to the overall origination process. Delays or inaccurate results are extremely costly to a mortgage lender. 2004-2005 Fair Isaac Corporation. All rights reserved. 5
E-services to be added soon: Retail Wholesale Correspondent Direct-to-consumer Tax Setup Homeowners Insurance Survey Fraud Detection Appraisal Document Preparation HMDA GEO Coding POS Broker Interface BridgeLink, XML Technologies BridgeLink e-service network enables users to exchange information and request and process transactions through the internet. BridgeLink is a hosted solution that provides electronic bi-directional connectivity between credit lending and mortgage lending customers and their service providers and partners. The BridgeLink foundation uses web services and XML technologies, which are essentially application programming interfaces (APIs) that allow systems on any platform, built with any programming language, to easily tap into a single point of contact. Each web service consists of one or more XML message formats that define how a service is requested, how results are returned and how various confirmation and error messages are communicated. Furthermore, the system provides the lending client with the ability to audit and track online the performance of a chosen vendor. Business logic written into the lender's loan or collection system or configured in the BridgeLink Message Broker provides fully automated transactions through the lifecycle of the loan. The BridgeLink network is tightly integrated with Fair Isaac software systems. Proprietary systems can also be connected to the BridgeLink network. 2004-2005 Fair Isaac Corporation. All rights reserved. 6
Technical Overview BridgeLink is an internet-based electronic commerce network consisting of XML services and hosted web applications. The BridgeLink network automates the ordering of third-party services by lenders, and transfers resulting data directly into the lender's core software systems. Communication Options Communication with BridgeLink can occur using HTTPS over the internet, on a private network such as the AT&T Global Network, with leased lines, or using Fair Isaac's debt placement service Value Added Network. The open architecture of BridgeLink will allow communication over virtually any TCP/IP network. Robust Data Infrastructure BridgeLink has been designed to handle massive transaction volumes. All requests are stored in a relational database management system and tracked using a sophisticated workflow application. Results are stored in the database and are always available in XML format. Image files such as PDF reports and digital property photos are also available. Security Transmission of data is done over Secure Sockets Layer (SSL) with 128-bit encryption. Additional security layers such as VPN and private data networks can be implemented as required by your security needs. Digital Certificates can also be used to authenticate all clients communicating with the BridgeLink servers. Ease of Implementation Implementation of BridgeLink will have a minimal impact on your IT infrastructure due to the pre-built integration with Fair Isaac software products. Interfaces with other leading systems have also been prebuilt and will require minimum configuration to meet your needs. Communication with the BridgeLink servers will typically not require any configuration changes to your firewall. BridgeLink Security BridgeLink provides a secure and robust environment; the transmission of data is done over Secure Socket Layer (SSL) with 128-bit encryption. Digital certificates are used to authenticate all clients communicating with the BridgeLink server. Each user of the BridgeLink TMO Services is given a user name and password and assigned the appropriate security role for their company. TMO Consultancy and Support Services TMO support representatives provide customers with technical, application and consulting support. The support desk operates Monday - Friday, between 8:00 a.m. and 6:00 p.m. ET, via phone, fax or email, and remote alert by mobile phone is provided 24 hours a day, seven days a week. Fair Isaac consultants work closely with customers to ensure correct specification for product use. A senior product specialist is assigned to each new customer and a support analyst is available to answer questions. An experienced and senior support team manages the complexity of file transfer, batch processing, online availability, security and all aspects of the service that require extensive monitoring and oversight. 2004-2005 Fair Isaac Corporation. All rights reserved. 7
Fair Isaac s Product and Service Offering Mortgage Banking Solutions Diamond software system is a comprehensive web-based mortgage origination solution that streamlines the complete mortgage process: from point of sale, registration, product and pricing, underwriting, though post-closing and including secondary marketing. FORTRACS software systems a solution for the management of loans in default. FORTRACS navigates the user through all of the default processes, including loss mitigation and foreclosure processing, bankruptcy processing, claims processing, and REO management. All this is driven through a robust workflow management capability to drive efficiencies and productivity. LSAMS software system is a comprehensive servicing and investor accountability solution that enables users to service both consumer and mortgage loans on a single platform. TCL software system (The Construction Lender) is a comprehensive solution for construction lenders. TCL manages the entire construction lending process including budgeting, disbursements, property inspections and document tracking. BridgeLink s LenStar service, our award-winning default management communications software, provides bi-directional integration with attorney case management systems for mortgage banking lending organizations and attorneys involved in the servicing of loans in foreclosure, bankruptcy and eviction. LenStar is the most advanced default e-commerce platform in the mortgage industry. 2004-2005 Fair Isaac Corporation. All rights reserved. 8
Fair Isaac s Market Solutions Originations & Underwriting Approve more new business while reducing risk and achieving portfolio and corporate objectives. Fair Isaac solutions help credit card issuers and other lenders, as well as insurers and telecom carriers, target and obtain the business they want while compressing decision cycles and reducing application processing costs. StrategyWare decision engine Capstone Decision Manager FICO score CreditDesk origination and underwriting software NextGen FICO scores Application Risk Models LiquidCredit service Enterprise Decision Manager for Insurance Falcon ID solution Customer & Account Management Retain good customers and automatically apply treatments that maximize the value of the relationship and achieve portfolio- or customer-level objectives. Fair Isaac solutions help credit card issuers and other lenders, as well as insurers and telecom carriers, boost revenues and manage risk while delivering individualized treatments to millions of customers. TRIAD 7 adaptive control system Customer Management TRIAD TelAdaptive account management service Netsourced TRIAD FICO score Processor TRIAD NextGen FICO scores TRIAD Transaction Scores Debt Manager solution BridgeLink Recovery Management System (RMS ) solution 2004-2005 Fair Isaac Corporation. All rights reserved. 9
Fraud Management Detect fraud instantly and act to prevent losses when booking new customers, during transactions and while serving existing accounts. Fair Isaac solutions provide credit card issuers and other lenders as well as merchants, insurers and telecom carriers with comprehensive protection while reducing costs and impact on legitimate customers. Fraud Predictor with Merchant Profiles Falcon Fraud Manager Falcon Fraud Manager for Merchants Fraud Manager for Telecommunications CardAlert Fraud Manager VeriComp Fraud Manager CardAlert Fraud Manager for Deposits Application Fraud Scores Application Risk Manager for Identity Check Falcon ID solution Risk Management Fully understand the risk you're dealing with. Fair Isaac solutions help credit card issuers and other lenders as well as insurers, telecom carriers and government agencies use data and empirical methods to better predict and manage risk. Risk Manager for Acquirers Risk Manager for Telecommunications FICO score Risk Manager for Government MIRA Claims Advisor for Reserving NextGen FICO scores VeriComp Fraud Manager Bill Review Fair Isaac brings efficiencies to medical bill review processing, with leading solutions for workers compensation and auto injury medical bill review. Whether your bill review need is for a licensed client/server installation, web-based ASP or complete outsourcing through our Insurance Service Bureau, Fair Isaac offers a solution to fit every need. Extensive EDI and scanning/ocr capabilities and Capstone-powered, user-customizable workflow automate bill review decision management to dramatically improve bill review productivity, accuracy and consistency. 2004-2005 Fair Isaac Corporation. All rights reserved. 10
Claims Processing Improve accuracy and efficiency in processing claims while preventing unnecessary losses. Fair Isaac solutions enable you to immediately separate routine claims, which can be fast-tracked for rapid settlement, from potentially fraudulent claims as well as legitimate claims requiring case management. Our solutions can also analyze risk and detect suspicious activity with every new transaction as long as a claim is open, enabling you to identify emerging problems and opportunistic fraud when the signs first appear. Capstone Decision Manager Payment Optimizer solution VeriComp Fraud Manager Customer Marketing We combine a consultative approach that includes campaign design, strategy definition and creative services with a suite of products and capabilities that we call Fair Isaac MarketSmart Decision System (MSDS). MSDS solution integrates all the technology and analytics services needed to perform contextsensitive acquisition, cross-selling and retention programs, enabling multi-product, multi-channel companies to drive more efficient and profitable customer interactions. Collections & Recovery Solutions Collections & Recovery Solutions develops custom and non-custom solutions for credit grantors, collection agencies, debt buyers and collection attorneys. Our offerings include placement services, data plus analytics packages and custom solutions. Collections & Recovery offerings are ASP-based for minimal IT impact. All services are accessible through easy-to-use online applications. Collections & Recovery offerings address the entire collections lifecycle, from day-one collections, to post charge-off, to debt sale. Placement Infrastructure Placement Optimizer SM service PlacementsPlus service UniScore SM service Custom Scoring Debt Manager solution Recovery Management System (RMS) solution 2004-2005 Fair Isaac Corporation. All rights reserved. 11
About Fair Isaac Fair Isaac (NYSE:FIC) makes decisions smarter. As the world leader in decision management solutions driven by advanced analytics, Fair Isaac unlocks value for people, businesses and industries. Companies worldwide use Fair Isaac technology to make billions of faster, more profitable decisions a year in credit management, marketing, fraud, collections, bill payment and other areas. The world s leading banks and credit card issuers rely on Fair Isaac technology, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Founded in 1956, Fair Isaac serves thousands of clients through offices in 10 countries, and helps millions of individuals improve their credit health through the www.myfico.com website. Visit Fair Isaac online at www.fairisaac.com. Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. Corporate Headquarters: Offices Worldwide: 901 Marquette Avenue, Suite 3200 Brazil, Canada, Germany, India, Japan, Minneapolis, MN 55402 Malaysia, Singapore, South Africa, Spain, 1 800 999 2955 from the US United Kingdom, United States 1 612 758 5200 from anywhere info@fairisaac.com email www.fairisaac.com BridgeLink, Capstone, CreditDesk, Debt Manager, Diamond, Fair Isaac, Fair Isaac MarketSmart Decision System Falcon, FICO, FORTRACS, LenStar, LiquidCredit, LSAMS, MarketSmart, MIRA, NextGen FICO, Payment Optimizer, Placement Optimizer, PlacementsPlus, Recovery Management System, RMS, StrategyWare, TCL, TelAdaptive, TMO, TRIAD, UniScore, and VeriComp are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be trademarks or registered trademarks of their respective owners.. 2004-2005 Fair Isaac Corporation. All rights reserved. 1774WP 01/05 PDF