Dorado Updates Its March 10 SourceMaster Announcement with Additional Information Regarding RealEC Technologies.

Business Editors

SAN MATEO, Calif.--(BUSINESS WIRE)--March 24, 2003

New Dorado SourceMaster Vendor Sourcing Software; First

American to Sell Settlement Services Application that

Enables HUD RESPA Bundling of Services

Dorado Corporation, the leader in Demand Chain Management for home lending, today announced SourceMaster(TM), a vendor sourcing software application for mortgage lenders. SourceMaster enables current mortgage operations to be more efficient in ordering, managing, and processing settlement services. It also addresses the pending Department of Housing and Urban Development (HUD) rule changes under the Real Estate Settlement Procedures Act (RESPA) requiring lenders to offer "bundled" services. SourceMaster will be available in the second quarter 2003.

SourceMaster is a Web services-based application that can be integrated into any loan origination or point-of-sale system, and connected to any vendor access network (VAN). Based on rules engine technology already shipping in Dorado PriceMaster(TM), SourceMaster allows users to create and manage rules for ordering, processing and managing vendor services.

"Whether selecting an individual vendor or a bundled service, SourceMaster enables lenders and real estate companies to automate how they order, process, and manage settlement services for home lending," said Dain Ehring, CEO, Dorado Corporation. "With our partner First American Corporation, we hope to provide the entire spectrum of home lending banks and real estate companies with an affordable solution that will scale to their needs, and enable them to keep up with market requirements."

"This is comparable to Dell Computers in PC manufacturing. Customers will be able to assemble a bundle for each individual order based on that individual's information, the property, and the lender's risk parameters," said Roger Hull, chief information officer with First American. "Because it is VAN-independent, SourceMaster uniquely offers better vendor coverage, independent vendor performance measurement, advanced vendor management capabilities, and better bundling support."

Settlement Services Automation

Settlement services include: credit, title, appraisal, flood, and related reports necessary to complete a mortgage. These services document the legal, economic, and environmental risks associated with purchase and ownership of a property. The ordering and tracking of these settlement services play an important role in the origination process and consume a significant portion of the costs and time it takes to close a loan.

First generation settlement sourcing automation focused on connecting lenders with one dedicated vendor network. These systems provided cost savings via reduced product turnaround times and by allowing for automated data translations and transfers between systems. However, this was inefficient because not all vendors could be covered on any one network, and vendor data and documents could not consistently be retrieved electronically.

"The problem is no longer connectivity but how to manage at a very granular level the specific vendors associated with a specific loan program for a specific zip code," said Robert Carpenter, CTO, Dorado Corporation. "This means customers need to connect to all the VANs, and use rules and the data in those systems to order services at guaranteed price and service levels."

HUD Reform: "Bundled Services"

The Department of Housing and Urban Development has proposed changes to the Real Estate Settlement Procedures Act. Under the terms of the proposal, lenders are required to provide a guaranteed price for a "bundle" of settlement services: title, flood, appraisal, credit and mortgage origination fees.

In retail channels of distribution, the lender will manage the creation of bundles. In wholesale channels, the bundle can potentially be broken into two bundles, one controlled by the lender and one controlled by the mortgage broker when appropriate. The lender bundle includes: the application, origination fees, credit, appraisal, and flood report fees. The settlement services bundle, which will be assembled by the broker, includes: pest inspection, title, recording, and other ancillary fees. These changes in some form are anticipated to go into effect later in 2003.

Bundling is the dynamic assembly of a set of settlement services products around loan program, property, borrower, and lender characteristics. Dynamic means the system automatically creates a bundle "on the fly," orders those services, and manages through the completion of the loan transaction.

"Whatever scenario is finally is enacted, First American with SourceMaster will enable our customers to address it," said Roger S. Hull, senior vice president, First American Corporation.

SourceMaster

Dorado SourceMaster is a Web services-based application that sits outside the transaction or order management applications used in mortgage origination today. It can be integrated with any loan origination system (LOS) or point-of-sale (POS) system. SourceMaster will connect to any vendor access network, such as First American's VMS, Ocwen Technology Xchange's REALTrans, or RealEC Technologies'(TM) RealEC Exchange(TM).

Once connected, a lender can set rules based on property information, loan product data, and borrower information to select a vendor for either individual settlement services, or for bundles of services. These rules will reflect legal relationships between the lender and selected vendors, and can be easily modified and updated without programming.

SourceMaster exposes all real-time decisioning logic as Web services. It provides a Web-based HTML interface to administer and manage the rule set and run reports on historical data with regard to routing logic, vendor performance, and costs. SourceMaster functions and features include:

Component           Function and Feature Description
------------------- --------------------------------------------------
                    Purpose: Create revenue and market share
                     opportunities through creative product bundling
                       --  Create and manage unique product bundles to
Product Bundler            provide market differentiation
                       --  Create and manage groupings of product
                           bundles by channel or business objective
                       --  Dynamically select bundles based upon:
                           policies and loan characteristics
------------------- --------------------------------------------------
                    Purpose: Provide increased operating efficiencies
                     and competitive advantage through advanced
Enhanced             transaction management functionality
 Transaction           --  Effectively manage consolidated vendor
 Manager                   invoicing and payables processing
                       --  Define and manage robust workflow
                           environment featuring SLA compliance tools
                           and workgroups
------------------- --------------------------------------------------
                    Purpose: Provide functionality to evaluate vendor
                     performance and automate vendor selection
                       --  Leverage rules-based tools to evaluate
                           vendor performance evaluation support
Vendor Manager         --  Dynamically select vendors based upon:
                           policies, vendor performance metrics, loan
                           characteristics
                       --  Dynamically upgrade products based upon
                           transaction lifecycle events
------------------- --------------------------------------------------
                    Purpose: Actively manage the mortgage or purchase
                     transaction.
                       --  Capture mortgage transaction and purchase
Transaction Manager        transaction data
                       --  Define and manage workflow events related
                           to the transaction
                       --  Transaction events trigger settlement
                           service product placement
------------------- --------------------------------------------------
                    Purpose: To define products and vendors and manage
                     orders
                       --  Define attributes of settlement service
                           products and vendors
Order Manager          --  Identify vendors for each settlement
                           service product
                       --  Order settlement services, manage order
                           placement, view order status and product
                           delivery
------------------- --------------------------------------------------
                    Purpose: Electronically route orders to vendors
                     and send products back.
Order Router           --  Place settlement service orders
                       --  Receive fulfillment data
                       --  Track vendor performance metrics (average
                           price and average turn time)
------------------- --------------------------------------------------
                    Purpose: Web services and VAN manager
                      --  Manages interfaces to vendor networks and
Interface Manager         services
                      --  Dynamically discover supply side
                          infrastructure
                      --  Reduces cost of integration and operations
------------------- --------------------------------------------------

"Dorado SourceMaster is a Web services-based application designed for easy integration with LOS and POS applications and with anyone's VAN," said Robert Carpenter, CTO, Dorado. "It reduces the cost of ordering, processing, and managing vendor services by using an already shipping mortgage industry rules engine, and new application components unique to vendor services."

Pricing and Availability

Dorado SourceMaster will be available through The First American Corporation beginning in the second quarter 2003. It will be sold on both a license and subscription basis. Pricing information is available from First American.

RealEC Technologies

RealEC Technologies is a majority-owned subsidiary of Fidelity National Information Solutions with significant equity ownership by Stewart Title Company (NYSE:STC) and LandAmerica Financial Group (NYSE:LFG).

The First American Corporation

The First American Corporation (NYSE:FAF) is a Fortune 500 company that traces its history to 1889. As the nation's leading diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people's lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $3.75 billion in 2001, First American has more than 22,500 employees in approximately 1,300 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at http://www.firstam.com.

Dorado Corporation

Dorado Corporation is the leader in Demand Chain Management software applications for U.S. home lending banks. Dorado's mortgage, home equity, and real estate products integrate business customers and consumers into lending processes. Dorado's Web services-based solutions increase flexibility and efficiency and enable the up- and cross-sale of financial products and services. www.dorado.com

Dorado, the Dorado logo, Dorado ChannelMaster, Dorado PriceMaster, Dorado Mid-OfficeMaster and Dorado .MOR are trademarks of Dorado Corporation. SourceMaster is a trademark of The First American Corporation. Other company and/or product names may be trademarks or registered trademarks of their respective companies.