Mortgage Lenders Now Have Clearer Insight Into Market Trends with Applied Financial Technology And McDash Analytics Partnership

Rigorous pre-payment method now combined with rich loan-level data offers sharper focus of mortgage turnover and refinancing

San Francisco, Calif. May 11, 2004 – Applied Financial Technology announced today that it has entered into an agreement with McDash Analytics to provide the nation's leading lenders and mortgage financing companies with short-term pre-payment projections as well as housing turnover and refinancing scores at the loan level.

This strategic partnership combines expert scoring with a deep and growing database of nearly 20 million mortgages, or one-half of the single family loans in the U.S., available to mortgage lenders to greatly enhance their accuracy of projecting pre-payments for greater insight into mortgage values and future behavior.

"The analytics contributed to the McDash database by FIS Applied Analytics deliver improved insight to portfolio performance," said Narin Seera, Senior Vice President of Risk Management at First Horizon-Home Loans. "We are a long-term user of McDash and FIS Applied Analytics. Inserting FIS Applied Analytics analytics into the McDash benchmarking tools conveniently improves the value of both products."

McDash Analytics' data do not include borrower specific information, and unique lenders are not identified. Data providing participants will continue to be able to identify their own portfolio on a loan level basis versus the rest of the industry. Moreover, with the exception of other borrower and lender identification, all mortgage lenders have access to Applied Financial Technology's rigorous and easily discernible prepayment ranking methodology on all McDash Analytics loan-level data with which to run their models.

"McDash Analytics has a tradition of providing the very best mortgage finance data to the industry on a proprietary basis, and we welcome the arrangement with Applied Financial Technology," said McDash Analytics Chairman Ted Jadlos. "Together we are bringing to the industry the valuable benefits of actual loan-level data with a proven pre-payment ranking methodology."

With the mortgage finance industry's need for accurate risk management methods in a voluminous and at times unpredictable marketplace, Applied Financial Technology and McDash Analytics' combined strength provides mortgage lenders with capabilities that are targeted to their requirements of uncovering and responding quickly to prevailing and projected market trends.

"The Applied Financial Technology pre-payment score is a loan level modifier to standard pre-payment models. Higher scores indicate a higher propensity to prepay relative to loans with the same coupon, maturity and loan type over long periods of time and all interest rate environments," said Graham Williams, Chief Operating Officer of Applied Financial Technology. "The score significantly improves short-term pre-payment projections; and standard, life-of-loan pre-payment vectors are much more accurate when modified by the score. FIS Applied Analytics is now scoring more than 200,000 newly originated mortgages each month."

About McDash Analytics
Since 1989, McDash Analytics has provided historical pre-payment and delinquency analytics to the mortgage finance industry to help that industry most appropriately benchmark its portfolios and portfolio performance. With seven of the top ten leading mortgage lenders as clients, McDash Analytics' loan-level database has delivered to clients the most effective way to benchmark and analyze acquisitions. The McDash Analytics team has extensive experience in default management reporting, whole loan and servicing valuations in addition to the benchmarking of mortgage-related assets. For more information, visit www.mcdash.com

About FIS Applied Analytics
FIS Applied Analytics provides pre-payment analytics to the nation's largest broker/dealers, lenders, insurance companies, institutional investors, and hedge funds. Among its clients are five of the nation's largest U.S. banks. Since 1996, FIS Applied Analytics has delivered high-quality risk analytics to the mortgage industry through its highly regarded quantitative methods. It offers pre-payment models for fixed, adjustable, prime and sub-prime mortgages and home equity lines as well as asset-backed securities. The company also provides option-adjusted valuation and risk management tools for mortgage- and asset-backed securities, collateralized mortgage obligations, and interest rate processes. The FIS Applied Analytics library is integrated with all major analytics providers, including Bloomberg L.P.