Monday March 20, 8:31 am Eastern Time
Company Press ReleaseSOURCE:
First Franklin Financial Corporation Employs ARC Systems' AU Technology
Number One Nonprime Wholesale Lender Provides Point-of-Sale Decisions Through ARC's Internet-Based Technology
NEW ORLEANS, March 20 /PRNewswire/ -- ARC Systems announced at the MBA
National Technology in Mortgage Banking Conference that First Franklin
Financial Corporation® is using the Austin, Texas-based application service
provider's (ASP) technology to receive point-of-sale credit evaluation and
risk-based pricing decisions via the Internet for its entire suite of loan
ARC Systems provides lending institutions with decision power for
better business practices, giving lenders the ability to provide answers at
First Franklin, the mortgage banking industry's leading nonprime wholesale
originator, is a subsidiary of National City Corporation (NYSE: NCC - news).
Franklin employs nearly 1,000 mortgage professionals and originated
$4.5 billion in nonprime mortgages in 1999.
ARC Systems provides First Franklin's brokers with automated underwriting
and credit decisions via the Internet based on the lender's own criteria.
Under this agreement, First Franklin supplies ARC Systems with its guidelines
for credit approval and product pricing.
When an application is submitted to
the system for approval, the application is decisioned within seconds based on
First Franklin's lending parameters.
If the application does not fall within
these established guidelines, it is tagged for manual underwriting for further
``Serving the nonprime market encompasses certain business challenges that
the prime market does not necessarily have to address,'' CEO of First Franklin
Bill Dallas said.
``Many of the loan products are similar, but the behind-the-
scenes underwriting and lending guidelines are very different, so we needed to
find a business partner that could work with our rules and guidelines.
Systems' technology offers us this flexibility.''
First Franklin is currently using ARC Systems' technology to decision and
price all of its loan products, including the company's combo-loans, a
combination of first and second mortgages, closed back-to-back, that allows
borrowers to receive up to 100 percent financing.
Under these combo-loans,
borrowers are qualified based on the loan-to-value (LTV) of the full amount to
be mortgaged; however, two separate loans are originated, documented and
According to First Franklin, its brokers who originate combo-loans
can receive 14 possible combinations including approval conditions in less
than 90 seconds.
``ARC Systems was the clear choice to provide the automated decisioning and
risk pricing for the combo-loans because no other technology can decision and
price these loans via the Internet,'' Dallas said.
``Part of our corporate mission is to use technology and the Internet to
reduce documentation and increase speed in mortgage originations,'' he
``ARC Systems' technology fits well with our business strategy and
the quality and speed of decisions our brokers receive is unparalleled in the
Using ARC's technology will certainly help First Franklin stay
ahead of the rest in this highly competitive non-conforming market.''
``Lenders that strive to simplify the mortgage process and eliminate
unnecessary documentation will certainly gain competitive advantage in today's
lending market,'' President and CEO of ARC Systems, Ed Jones said.
underwriting process closer to the point-of-sale is paramount in shortening
the origination process.
First Franklin has been an innovator since its
inception, and employing ARC's Internet-based technology further demonstrates
its dedication to leading the non-conforming industry.''
About First Franklin Financial Corporation
First Franklin Financial Corporation was founded in 1981 to serve the
prime credit market.
In 1994, the company made a strategic move to serve the
nonprime lending market, and in 1995, First Franklin introduced a proprietary
credit-risk lending solution called Direct Access.
The wholesale lender
currently works with more than 11,000 mortgage brokers nationwide and operates
24 wholesale centers throughout the United States.
First Franklin originates,
purchases, sells and securitizes nonconforming/subprime, residential, first
and second lien mortgage loans.
For more information about First Franklin, contact Marketing Manager Amy
Witmer at (408) 964-6000 or write to 2150 North First Street, San Jose, CA
About ARC Systems
Founded in 1984 as Advanced Resource Computer Systems, ARC Systems is a
privately held company that provides lending institutions, banks and credit
unions across the nation with the power to make fast, accurate and consistent
decisions at the point-of-sale for risk-based pricing and credit evaluation.
Empowering financial institutions with the ability to make better business
decisions, the company's proprietary, patent-pending, rules-based system is
used by more than 80 lending operations nationwide, including Aames Financial
Corp., First Franklin Financial, Option One and Irwin Mortgage.
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 .