FNC, Inc. Introduces Collateral DNA, Data and Analytics for Real Estate

New product suite completes the efficiency revolution in mortgage lending

with descriptive and predictive analytic scores, tools, and information


Oct 03, 2006, 01:00 ET from FNC, Inc.

    OXFORD, Miss., Oct. 3 /PRNewswire/ -- With its new collateral-focused
 analytics, FNC, Inc. arms mortgage lenders with decision-making tools for
 the life of a loan, from origination to review to capital markets.
     Branded as Collateral DNA, these descriptive and predictive analytic
 products use a rich database of appraisal and public record data to quickly
 deliver accurate information and scores on a particular market, property
 and vendor, said FNC's Chief Operating Officer Robert Dorsey.
     "Delivering these analytic tools has been part of FNC's corporate
 strategy from the beginning," Dorsey said. "Over the years, we've worked to
 build the National Collateral Database, which recently reached critical
 mass and empowered us to build these products. We think Collateral DNA is
     It takes two numbers to make a loan: a credit number on the applicant,
 and a collateral value for the property. Before the nation's top lenders
 implemented FNC's Collateral Management System(R), collateral information
 had been slow, unwieldy, and sometimes unreliable. The CMS(R) reduced
 warehouses of appraisal forms into simple XML data streams, speeding
 origination, review and servicing.
     Through its collection of vast amounts of appraisal data -- millions of
 appraisal reports pass through the system every year -- CMS fuels FNC's
 collateral-focused data and analytic products. The National Collateral
 database blends public record and real estate sales information with
 real-time appraisal data, the gold standard of collateral valuation, making
 FNC's analytics more accurate and up-to-date, Dorsey said.
     FNC's clients, which include more than 25 of the nation's top mortgage
 lenders, have already implemented some Collateral DNA solutions. Many now
 use FNC's Appraisal Score to make appraisal review even more efficient and
 focused. The Appraisal Score delivers automated collateral underwriting in
 the form of a simple score and a report that directs the underwriter to
 potential valuation pitfalls.
     Much like a FICO credit score, the Appraisal Score ranges from 0 to
 1,000, with 1,000 being a perfect score. The lower the score, the more
 troubling the valuation.
     FNC developed the Appraisal Score by weighting its Generally Accepted
 Appraisal Rules(TM), which automatically review appraisals using more than
 450 rules to screen for regulatory compliance, compliance with Fannie Mae
 and Freddie Mac standards, potential overvaluation or inconsistencies in
 the report.
     "Appraisals have always been scored using an outdated, manual review
 process," said FNC Data Operations Manager Steve Costello. "Now, FNC's
 Generally Accepted Appraisal Rules and the Appraisal Score make appraisal
 review fast, accurate and automated."
     FNC Chief Executive Officer Bill Rayburn said the strategy for
 Collateral DNA is simple -- give lenders the tools they need to profitably
 fund loans in what he calls the new "Collateral Era."
     "Credit-based data and analytics saved lenders so much time and money
 that they could afford to make more loans with less risk through a fairer,
 quicker and more profitable process," Rayburn said. "Everything changed.
 Data and analytics became the standard for assessing credit impacts on
 loans. At FNC, we're completing the efficiency revolution by doing the same
 for collateral."
     Other Collateral DNA products bring more efficiency to the process.
      - Easy Price Opinion (EPO), a Web-based application useful for equity
        loan production, offers interactive maps and comps backed by FNC
        analytics and Fannie Mae guidelines.
      - Data Express allows fee or staff appraisers to auto-populate their
        appraisal forms with the best comps, complete with transaction
        histories and plat maps.
      - Loan Pool Valuator features an easy-to-use interface tool that
        validates the valuations of all loans in pool, useful in correspondent
        lending, servicing and capital markets.
     Collateral DNA Product Manager Jocelyn Atkinson said many more
 prototype products are being tested, researched and developed. She works
 with a team of developers, designers, and data experts to harness the power
 of the National Collateral Database.
     "Our challenge is to take this incredible resource -- our data -- and
 deliver analytic tools that make sense for lenders," Atkinson said. "A rich
 data source means we have endless possibilities. We rely on our lender
 clients for feedback and strategic direction.
     "What do they need most? What will make them more efficient? How can we
 streamline the process?" Atkinson said. "It's not an over-the-top claim.
 Collateral DNA is an efficiency revolution for mortgage lending."
     About FNC, Inc.
     Headquartered in Oxford, Miss., FNC pioneered real estate collateral
 information technology. Since 1999, FNC's Collateral Management System(R)
 (CMS(R)) has streamlined mortgage operations by converting paper to data to
 knowledge. FNC's success positioned the company at No. 154 on Inc. 500's
 list of the fastest growing private companies in America in 2004. As the
 mortgage market enters the age of collateral, FNC will continue to provide
 the data and analytics to help lenders make informed decisions. Visit FNC's
 Web site at www.fncinc.com.
      For information, contact:
      Angela Atkins
      FNC Inc.
      Phone 662/236.2020, ext. 258