Allied Mortgage and WMC Mortgage Announce Joint Venture to Market Non-Prime Underwriting Tool.

Business Editors

HOUSTON--(BUSINESS WIRE)--Jan. 17, 2001

First Multi-Lender Sharing of Common Automated 

Underwriting System for Non-Prime Loans

Allied Mortgage Capital Corp., a leading U.S. mortgage banking firm with more than 500 branches nationwide, and mortgage banker WMC Mortgage Corp. today announced that they have formed a joint venture to market an enterprise-wide non-prime underwriting tool.

The new tool will allow mortgage brokers to submit loans for automated underwriting to multiple lenders from a single, common underwriting system.

"We believe this is the first time that multiple lenders have agreed to participate in a common automated underwriting platform for non-prime loans," said Ron Litt, chief information officer of Allied Mortgage.

The new engine allows brokers to submit loans to multiple lenders via the Internet, to have the loans underwritten to each lender's own guidelines and produce an underwriting decision online.

"What really makes this tool unique is each participating lender's agreement to provide brokers a commitment on loans that receive an `Accept' decision from the engine," said James Walker, chief technology officer of WMC Mortgage Corp.

Both companies believe that this tool will dramatically reduce funding times, and in turn, reduce the cost to produce these loans.

The joint venture plans to announce the availability of the new tool at Allied's national convention in Houston, Feb. 15-17, 2001.

Allied has actively engaged in e-commerce for the past five years. Allied's accomplishments include: the first electronic mortgage, the first Texas reverse mortgage, and a pilot program with Freddie Mac. The combination of "bricks and clicks" means potential borrowers can seek their own level of comfort in conducting a mortgage loan transaction.

For the near term, Allied believes the benefit of the Internet lies in improving broker/lender/client interaction by simplifying and accelerating the mortgage process, in a cost-efficient manner.

"The strategic focus at Allied has been to continue to grow by maximizing consumer choice and by giving our branch managers the best available tools," said James Hodge, Allied's chief executive officer. "We believe the joint venture will allow our brokers and lenders to simplify their relationships.

"Today, Allied has entered an exciting new era in its continuing transformation," Hodge added. "Our offering of mortgage investors and sophisticated Internet tools is a combination that is unique in the industry. We believe that WMC and Allied have created in their joint venture, a win-win for both lenders and mortgage brokers/bankers."

About Allied Mortgage Capital Corp.

Allied Mortgage Capital Corp. is the largest U.S. privately held mortgage banker/mortgage broker, with 500 offices in 49 states, Guam and the Virgin Islands. Allied's development of more than 700 investor programs and innovative partnerships have allowed it to deliver customized products to each borrower. Combined with the energy of branch managers who have the freedom to respond to local market conditions, Allied has experienced sequential double-digit growth since it was founded in 1991.

For more information about the company, visit Allied's Web sites at www.branchasap.com and www.mortgageasap.com. Corporate address: Allied Mortgage Capital Corp., 6110 Pinemont Ave., Houston, Texas 77092; telephone: [phone].

About WMC Mortgage Corp.

WMC Mortgage Corp. is a leading provider of Internet-based loan origination services for mortgage brokers via its WMCDirect Web site at www.wmcdirect.com. Mortgage brokers can get instant loan pre-qualifications, electronically submit loans, receive loan approvals in minutes with automated underwriting, and access their individual loan pipelines, 24/7.

With headquarters in Woodland Hills, Calif., WMC Mortgage Corp. was the first B2B alternative lender to originate loans exclusively online. Since its launch, in June 1999, loan submissions to WMCDirect have totaled more than $2.9 billion and agents from 7,300 mortgage brokers have registered at the Web site.

Corporate address: WMC Mortgage Corp. 6320 Canoga Ave., Woodland Hills, Calif. 91367; telephone: [phone]. Contact: David Swain, senior vice president, e-Commerce, 818/592-2531.