Monday December 13, 7:31 am Eastern Time
Company Press Release
Aames Financial Corp. Enlists ARC Systems for Automated Underwriting
Credit risk decisioning is fast, accurate and consistent using ARC Systems
AUSTIN, Texas and LOS ANGELES--(BUSINESS WIRE)--Dec. 13, 1999--
Aames Financial Corp. (NYSE:AAM - news) has selected Austin, Texas-based
ARC Systems (ARCS) to provide automated underwriting for its
LendingTree.com relationship. Aames is a Los Angeles-based mortgage
lender that specializes in non-conforming mortgage and home equity
financing. ARCS provides lending institutions with decision power for
better business practices, giving lenders the ability to provide
answers at the point-of-sale.
Unlike government sponsored entity (GSE) automated underwriting
systems, ARCS provides automated underwriting and credit decisions
based on the lender's own criteria. Under this agreement, Aames
supplies ARCS with its guidelines for credit approval and product
pricing. When an application is submitted to the automated
underwriting system for approval, the application is decisioned within
seconds determined exclusively by the lender's submitted parameters.
If the application does not fall within these established guidelines,
it is tagged to undergo manual underwriting for approval or referral.
Aames will initially offer this rapid, rules-based AU feature
through LendingTree.com. Currently, consumers must wait several hours
to even days to receive underwriting status from Internet lending
sites. Now, consumers will be able to go directly to LendingTree.com
to apply for a mortgage or home equity loan and receive the credit
decision within seconds.
``ARC Systems allows Aames to utilize automated decisioning to
provide customers with immediate responses to loan requests made over
the Internet,'' said Celinda Moore, senior vice president of Aames
Financial Corporation. ``Providing Internet mortgage origination
services, including immediate responses to loan requests, is crucial
for mortgage lenders in today's competitive Internet marketplace. ARC
Systems provides Aames with the automation necessary to leverage the
Internet's power to close more loans and to benefit customers by
making immediate credit decisions.''
``There was a void in the automated underwriting sector of the
mortgage industry. Lenders were struggling to figure out how to
maintain consistent lending parameters within their portfolio of
non-conforming loans,'' said Ed Jones, president and CEO of ARC
Systems. ``ARC Systems has filled that void by providing lenders with
fast, accurate and consistent decisioning power based on their own
lending guidelines instead of basing credit decisions on nebulous
About Aames Financial Corp.
Aames Financial Corp. is a leader in the non-conforming home
equity lending market. The Company originates and purchases loans
through retail, broker and correspondent lending channels. The company
retains the servicing rights to the majority of its loans and
maintained a servicing portfolio in excess of $4 billion in 1998.
For more information about Aames Financial Corp., contact Ms.
Celinda Moore, senior vice president, (323) 210-4835; or write the
company at 350 S. Grand Avenue, 43rd Floor, Los Angeles, CA 90071. The
company's Internet site can be viewed at www.aames.net.
About ARC Systems
Founded in 1984, ARC Systems is a privately held company that
provides lending institutions with the power to make fast, accurate
and consistent decisions for risk-based pricing and credit evaluation.
The company's proprietary, rules-based system is used by more than 80
lending operations nationwide.
For more information about ARC Systems, contact Mary Tipps at
(512) 892-5550, via email at firstname.lastname@example.org, or write the
company at 5316 Highway 290 West, Suite 500, Austin, TX 78735. The
company's Web site can be viewed at www.arcsystems.com
ARC Systems Inc.
Edward N. Jones Jr., 512/892-5550
Media Contact For ARC Systems Inc.
Beth Margedant, 678/781-7207
Aames Financial Corp.
Ms. Celinda Moore, 323/210-4835