BNC Mortgage Inc. Introduces BNC Online.

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 4, 1999--

BNC Mortgage Inc. (Nasdaq:BNCM) BNC Mortgage Inc. ("BNC") announced today that it has introduced a new website which will bring efficiencies to its lending operations, provide useful tools to mortgage brokers, and distribute valuable information to originators, existing and prospective shareholders.

This website can be accessed at www.bncmortgage.com.

"BNC Online will cater to our customers, the mortgage brokers who continue to account for the vast majority of loan originations throughout the mortgage industry. Use of the Internet will only increase in time, and users will gain confidence in completing larger transactions such as mortgages over the Internet. This new website will serve as the bellwether of our future development of a profitable business-to-business e-commerce wholesale operation," noted Kelly W. Monahan, President.

The Company's new website includes a loan prequalification engine. "ePrequalifier" is a tool whereby the mortgage broker inputs several basic characteristics of the borrower's credit history, selects a BNC loan product, and receives, on-line, a credit risk classification and an offering of interest rates.

"The use of ePrequalifier by mortgage brokers will add operational efficiencies at the broker level and to BNC by eliminating manual "testing" of various loan scenarios by the mortgage broker, BNC underwriter and BNC account executive during the prequalification process," said Peter R. Evans, Chief Financial Officer.

By the end of 1999, the Company will introduce "eQualifier" which will allow approved mortgage brokers to submit loans electronically through a secure internet site, access the borrowers credit and obtain an automated underwriting decision based on BNC's underwriting guidelines.

"Increased use of ePrequalifier and eQualifier over time will result in redefined roles for several disciplines within our mortgage lending operation and have the effect of reducing the costs of originating loans," said Monahan.

Standard web services provided on this new website will include: access to current rate sheets, product offerings, underwriting guidelines, loan calculators, and the necessary forms required for submission of mortgage loans.

"The introduction of our new website will allow us to access the mortgage brokerage community outside of the top 100 Metropolitan Service Areas, as well as, increase the service we provide to our current broker network," stated Evans.

"We are committed to the completion and continuous development and upgrading of our website and of the tools offered to the mortgage brokers," added Fred Khadem, Chief Information Officer.

In addition to these internet activities, BNC has completed a custom installation of Empower(TM), a loan origination system. BNC was selected by Eastern Software Corporation ("Eastern") as the Beta test partner for the "Empower Product" in 1997. BNC has been working closely with the software development team at Eastern to customize the window based system specifically for BNC's subprime wholesale operation.

"Combining BNC Online, ePrequalifier, eQualifier, the use of the TrueLink(TM) Freddie Mac, and Fannie Mae automated underwriting systems at BNC's conforming origination subsidiary Mortgage Logic.com Inc., and the Empower software system will create a cost effective means to link each of our branch's operations with automated underwriting tools and to our corporate office and ultimately to our brokers. This moves BNC closer towards its goal of being one of the lowest cost originators in the specialty finance sector," commented Evans.

"We have also recently entered into numerous relationships with several internet portals that have focused on business to business loan originations such as openclose.com, LoanTrader.com, and IMX Exchange to create additional marketing channels for our wholesale subprime lending operation. BNC has established itself as a leader in the specialty financial services industry over the past five years. We believe that we can originate loans over the internet through several business to business "e-commerce" applications while maintaining our business plan of increased profitability and positive cash flow," said Monahan.

Except for historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended in Section 21E of the Securities Exchange Act of 1934, as amended and involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements can be identified by the use of words "anticipate," "may," "will," "expect," "when," "intend," "could," "should," "would," "remain," and "continue," or the negative or other variations thereof or comparable terminology. The Company's actual results could differ materially from those anticipated in the forward-looking statements based on changes in the Company's business strategy.