Product Release Notice
May 2006

Introducing The Mortgage Office™ Version 1.8.80
In our continuing effort to provide you with the most technologically advanced and easy-to-use loan servicing and origination software found anywhere, Applied Business Software, Inc. is pleased to announce the newest release of The Mortgage Office™. This update contains exciting new features and enhancements that will benefit you and your business.

You may download the update from this site, or if you prefer to receive a CD-ROM by mail, we require that you fill out, sign, and submit a Software Update Request form via U.S. mail or Fax. The updates will be processed in the order received. As always, we welcome your comments and suggestions regarding the quality and usefulness of our products. Your comments help us improve our products to better meet your needs.

Thank you for your continued support of The Mortgage Office™.

Best Regards,
ABS Software Development Team

Lender & Vendor File Attachments. The lender and vendor files have been enhanced to support attachments. This popular feature previously available in the loan files, is an an easy-to-use, fully integrated document imaging and management system that enables you to capture paper and electronic documents from disk or directly from any TWAIN-compliant device such as scanners and cameras, and store them in one location, and most importantly attach them to specific lenders or vendors for easy retrieval at any time.

Easily attach relevant documents such as PDF files, spreadsheets, letters, contracts, pictures – anything you need to track so that everything is in one place, and stop the frustrating and time consuming task of searching for loan-related documents.

Sample Lender & Vendor Attachment Screen

Find Information Quickly and Easily. You may now pull all lender and vendor related information together in one place, no matter where it came from and easily attach documents and files from disk or directly from any TWAIN-compliant device such as scanners and cameras.

Benefits. The management and attachment of digital documents to specific lender and vendor files has many benefits that can appreciably improve your business efficiency and give you a competitive advantage. Here are just a few:

• Attach documents and files to lender and vendor files from disk or directly from any TWAIN-compliant device such as scanners and cameras
• Maintaining and managing all related documents together in one place will streamline your business processes and increase productivity
• More efficient distribution and control over information, files and records throughout the organization
• Expedite business processes by allowing instant access to information
• Greater collaboration within and among departments and offices
• Enhanced security for documents, files and records
• Easily automate back up of documents, files and records for disaster recovery
• Share documents with colleagues while protecting confidential information
• E-mail documents and files instantly
• Access documents remotely via the Internet using Microsoft Terminal Server or similar technology
• Improved efficiency in the storage, retention and disposition of documents and files
• Simplify the life-cycle management of business records; enforce a consistent, organization-wide records policy, and reduce the costs commonly associated with regulatory compliance

View & Edit Reminders for a Single Loan. With a simple click of a button you may now view of all reminders linked to this loan and add, edit or delete as needed. The full functionality of the reminders maintenance dialog form is available but only for reminders linked to this loan.

Sample Loan File Showing New Reminders Button

Overview. This state-of-the-art optional module provides the necessary functionality to successfully service and manage residential and commercial construction loans. It fully automates the entire construction loan lifecycle from acquisition and development through construction.

Sample Screens

Managing construction loans is an involved and labor-intensive process. Now there is an efficient, affordable and easy-to-use solution to help you mitigate the risks commonly associated with servicing construction loans while at the same time providing the flexibility to increase your servicing portfolio without additional overhead costs. The system operates in real-time giving you complete flexibility in controlling disbursements, billing interest and loan charges, tracking site inspections, funding commitments and posting borrower payments at any time.

The following list is just a brief description of some of the features available in this new module:

• Comprehensive, easy-to-use system to manage any type of construction loan
• Fully automated finance charge assessment and billing process
• Supports variable and fixed rate loans, interest-only and graduated terms
• Unlimited number of user defined budget accounts and groups
• Easily import similar budgets from other loans
• Fully automated lender participation accounting and distribution of funds
• Quickly schedule and track property inspections
• Fully integrated with the Trust Accounting module
• Flexible disbursements with line item budgeting
• Disburse funds via EFT/ACH, computer-generated check or manual check
• Easily spot actual or potential cost overruns
• Quickly and effortlessly void, reverse or delete any transaction
• Produce year-end 1098 and 1099-INT tax statements or file magnetically
• Flexible billing cycles and ability to asses finance charges based on daily, average, lowest or highest balance for period
• Loans can be incrementally funded with unlimited number of funding sources or lenders
• Ensure availability of funds with complete tracking and reporting of commitments
• Easily place a hold on all or part of a budget line
• Enforce and monitor holdbacks
• Track disbursements vs. percent completed
• Track disbursements vs. budget
• Automated transaction and loan funding fees
• Maintain contractor information
• Periodic account maintenance fees can be automatically assessed
• Complete and detailed history of fundings, billings, disbursements and borrower payments
• Attractive, detailed and easy-to-understand borrower billing statement
• Produce a borrower statement of account at any time
• Spot potential cash shortages with the cash flow projection report

Disbursements / Vouchers. Disbursements can be directed to the borrower, contractors, vendors or any combination thereof, and paid by computer-generated check, manual check or paid via an electronic fund transfer (ACH). The system also tracks holdback amounts and holds placed on all or part of a budget line item. Funds can be advanced to a fund control account or directly, as voucher and invoices are submitted for payment.

Sample Disbursement / Voucher Processing Screens

Property Inspections. Monitor and schedule physical property inspections to ensure disbursements are in line with percent completed. The property inspections can be scheduled ahead of time and assigned to one or more inspectors. A comprehensive daily work order of pending site inspections can be produced at any time for each inspector.

Sample Screens

Construction Budget / Cost Breakdown. Review or edit a loan's budget/cost breakdown at any time and analyze in real-time the budget versus actual performance.

Sample Screen

Project & Billing Information. Informative and easy-to-use data entry forms enable you to setup a construction project information and billing terms in a few quick steps, and to effortlessly administer an array of different types of loans including fixed rate, interest-only, graduated payments and adjustable rate mortgages.

Sample Project & Billing Screens

Construction Budget Accounts & Groups. Fully user-defined, project budgets can be as detailed as needed with an unlimited number of budget groups and accounts. When setting up a new construction loan, you may use the import budget assistant to easily copy an existing budget from another loan.

Sample Budget Master Chart of Accounts

Process Funding with Ease. The loan funding assistant will guide you through the necessary steps of processing additional loan funds. For those of you that originate and service construction loans with the added complexity of multiple funding sources, the loan funding assistant will accurately calculate and prorate interest payments taking into account any number of mid-period fundings from one or more lenders.

Sample Loan Funding Screens

Assess Finance Charges. Construction lending requires periodic and accurate assessment of finance charges. The system supports multiple billing cycles and per-loan flexible billing terms. A complete billing history is maintained for each loan and billing errors can be easily reversed.

Sample Billing & Print Statement Screens

Generate Borrower Billing Statements. Provide better service to your borrowers and avoid unnecessary billing questions by producing accurate and easy-to-understand statements. These multi-section statements can be generated at any time showing the account's activity for the period and complete finance charge computation detail.

Sample Borrower Billing Statement

Fund Commitments. For many companies, the matching of available funds to timely disbursements is critical, and if not managed properly could create cash flow deficiencies in a project. Accurately tracking fund commitments ensures that funds are available when needed.

Sample Fund Commitments Grid & Data Entry Form

Management Reports. Participate in the high-profit construction lending market with confidence. The Mortgage Office Construction Lending module is easy-to-use and enables you to reduce the risks associated with construction lending while at the same time improving customer service. To service construction loans you need accurate and timely information. The system allows you to generate informative management reports at any time.

Sample Reports

Capital Distribution Assistant. This new assistant is designed to help you distribute capital to all or selected partners. It can automatically calculate each partner's portion of the total capital being returned based on their current ownership in the pool, or you may elect to manually apportion the distribution. The distribution of capital can take place at anytime and it may optionally include interest to date.

Sample Capital Distribution Screens & Reports

Yearly Crosstab Transaction Reports. These four new reports may become one of your most valuable tools when managing mortgage pools. It provides a month-by-month crosstab analysis of all contributions, distributions, disbursements and withdrawals made to each partner for a selected year. It also provides each partner's year to date totals as well as partnership's monthly and year to date totals.

The reports available are:

Yearly Crosstab Partner Contributions Report Yearly Crosstab Partner Withdrawals Report Yearly Crosstab Partner Disbursements Report Yearly Crosstab "Partner Distributions Report

These reports are available in both the "shares" and "capital" based partnership models.

Sample YTD Distributions Report & Assistant

Enhanced 1099-INT Reporting for Certificate Holders. The certificate holder file has been updated to include a flag to determine whether a year-end 1099-INT is produced. Additionally, the import assistant in the Tax Forms Management & Printing module now supports the ability to include or exclude certificate holders by category.

Draws / Cash Advances Assistant. This assistant has been redesigned to allow the addition of new lenders not previously participating in the loan and to include an easier-to-use grid-like funds distribution interface. The servicing trust ledger is now updated with the new funding amounts.

Sample Line-of-Credit Funding Screens

Funding History. Quickly respond to borrower or lender inquiries with the ability to view or print a detailed history of a loan's funding. Funding errors can be easily corrected by reversing specific funding records.

Sample Funding History Screens

Billing History. Audit, view or print a loan's billing history and using a single-step, fully automated option, reverse past billing errors.

Sample Billing History Screens

This section includes minor enhancements, modifications and corrections included in this release of The Mortgage Office™. Many of these are the result of suggestions made by customers and help us improve The Mortgage Office™ to better meet your needs.