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HNMA launches automated underwriting system - HAUS - for underserved Hispanic and immigrant segments in the Mortgage Industry

- System Improves Accuracy and Efficiency for Lenders Dealing with Nontraditional Credit -

SAN DIEGO, Nov. 14, 2006 -- The Hispanic National Mortgage Association (HNMA) announced today it has launched HAUS, the first automated mortgage underwriting system that is calibrated to make credit decisions using the non-traditional characteristics prevalent in Hispanic and other immigrant communities. The new automated underwriting system will enable mainstream lenders to expand their market share within these rapidly expanding customer segments and to sell their loans automatically to HNMA's new correspondent lending company. HAUS was unveiled this week at the Mortgage Bankers Association's Residential Underwriting Conference in San Antonio, TX.

"Underwriting loans for Hispanic, immigrant and other non-traditional borrowers has historically been a manual, labor-intensive process," explained Leonardo Simpser, Managing Director of HNMA "This friction, combined with the relatively small size of the loans and the difficulties in underwriting non- traditional credit, has impeded homeownership for creditworthy Hispanic and other immigrant borrowers. HAUS gives lenders a turnkey, automated solution to this problem and gives them access to customized loan programs and additional liquidity."

HAUS takes into consideration more data than traditional AUS systems in order to get a better picture of the true creditworthiness of Hispanic and immigrant borrowers. It is designed to automatically incorporate non- traditional credit and can accommodate information from multiple borrowers and borrowers with multiple income sources, including cash income, and multiple employers: characteristics that are common within these markets.

HAUS was developed using extensive qualitative and quantitative research on the mortgage market and the credit profiles and tendencies of its target markets. The system runs on Overture Technologies' web-based origination platform. By working with industry and modeling experts and wide range of data sources, HNMA created this web-based system that can approve loans to borrowers with little or no traditional credit history and even borrowers who currently do not have social security numbers--but do have Individual Taxpayer Identification Numbers (ITIN). The system can take information and return recommendations and stipulations in both Spanish and English. Application information can be entered manually or uploaded from LOS systems and is run through HAUS, which, in turn, issues an instant decision.

Typically it takes half of a day to train new users on the HAUS system. "HAUS is designed to give lenders the tools and the confidence to better serve the growing Hispanic loan market and to give borrowers the pricing and experience they deserve," said Mr. Simpser.

About The Hispanic National Mortgage Association (HNMA)

HNMA is a private, for-profit company providing a variety of services to the mortgage industry. Its mission is to increase homeownership opportunities within the Hispanic community. HNMA currently has three business divisions: HNMA Funding Company, a correspondent investor that offers innovative loan programs focused on Hispanic and other immigrant communities; Ilumina Mortgage, a Hispanic-centric retail lending operation that is a joint venture between Wells Fargo Mortgage and HNMA; and HNMA's R&D unit focused on the development of tools to measure Hispanic and other nontraditional borrower's creditworthiness more accurately and more efficiently.



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