ARC Systems Announces Agreement With Matrix Financial Services Corporation

New Technology Will Provide the Tool to Create the Most Profitable Loan Pool Combinations 


ORLANDO, Fla., Oct. 24  /PRNewswire/ -- ARC Systems(TM), a leading mortgage automation provider, announced at the Mortgage Banking Association's 92nd Annual Conference and Expo (MBA Booth #221) their agreement with Matrix Financial Services Corporation (Matrix) to provide a core system.  Using the new system, Matrix will develop their flow business and manage their existing correspondent business by implementing ARC Systems' award-winning LendTech(TM) product.  Matrix plans to launch the implementation in the first quarter of 2006.

ARC Systems' web-based platform will automate Matrix's decisioning on purchases of closed loans.  LendTech will perform due diligence for loan pools on a bulk basis and a comprehensive underwrite for individual loans on a flow basis.  Additionally, ARC Systems will provide an interface to a third-party vendor for compliance screening.

LendTech's real-time decisioning functionality will be leveraged across Matrix's correspondent lending business to make accurate, real-time decisions on a bulk and flow basis, as well as to provide a solid foundation for establishing processes and managing operations as their business grows.  In preserving the quality of Matrix's loan pools, LendTech provides the loan quality metrics tool to see 100 percent of what is in the loan pools, rather than a sampling.  This will ensure the loan pools Matrix creates through the flow basis and purchases through the bulk basis are accurately distributed among appropriate capital markets.  For Matrix's flow line of business, LendTech will underwrite loans purchased from correspondents around the country.  The LendTech technology will help Matrix develop the most profitable combinations of loan pools.  With LendTech's quick pricing scenario functionality, Matrix can run the loan through the system to determine whether it's the desired rate, lock the rate and perform a full underwrite on the loan application.

"We have experienced significant growth, and we needed a core system to enhance our business processes to assist us in maintaining our new business and continued success.  LendTech provides the core system that Matrix requires to implement our correspondent flow program," said Patrick Howard, president and chief executive officer of Matrix Financial Services Corp.  "Since we'll be utilizing the core system provided by ARC Systems, we are confident we can provide a competitive edge to our customer base."

"Through the use of our core technology, ARC Systems has enabled numerous other large banking institutions to achieve their business objectives for mortgage automation in an efficient and cost-effective manner," said Ed Jones, president and chief executive officer of ARC Systems.

About ARC Systems

Founded in 1984 and headquartered in Austin, Texas, ARC Systems is a privately held company providing premier decisioning technology to lending institutions and investment and commercial banks across the United States. With the power to make fast, accurate and consistent decisions at the point- of-sale for risk-based pricing and credit evaluation, ARC Systems' products empower clients to make smart business decisions.  The company's proprietary, patent-pending, rules-based system is used by lenders to provide direct access to automated underwriting, product/pricing and online loan origination system functionality to their customers, correspondents and brokers.

About Matrix Bancorp

Matrix Bancorp (NASDAQ:MTXC) is a unitary thrift holding company headquartered in Denver, Colorado.  Its subsidiaries' operations are conducted primarily in Colorado, Arizona, Texas and Tennessee.  Through its subsidiaries Matrix Capital Bank and Matrix Bancorp Trading, the company is an active participant in the capital markets, secondary mortgage markets, and mortgage servicing market.

   ARC Systems Media Contact:
   Michael Perna, Director of Marketing
   ARC Systems
   
   512.892.5550

   ARC Systems Product Contact:
   Steve Jenkins, Vice President of Business Development
   ARC Systems
   
   512.892.5550


DATASOURCE: ARC Systems



CONTACT:  media, Michael Perna, Director of Marketing,

 , or product contact, Steve Jenkins, Vice President of

Business Development,  , both of ARC Systems,

[phone]



Web site:  http://www.arcsystems.com/ 

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