The servicing and escrow components of Fidelity National Information
Services' (FIS) Advanced Lending Solutions (ALS) suite were designed to fully
support and facilitate the specific needs of the home equity lending business.
For servicing, FIS' ALS Servicing Manager software supports variable-rate
processing and both open-ended and closed-ended home equity lines of
credit. The software also supports home equity products that have varying
periods for the borrower to take draws against the line, followed by a
repayment period specified by the lender. These structures are very flexible
in their support for home equity loans and lines of credit. ALS Servicing
Manager also provides full Financial Accounting Standards Board
(FASB) support.
A natural compliment to ALS-Servicing Manager, ALS-Advanced Escrow
provides lenders with a comprehensive solution for supporting the tracking,
managing and accounting for items that relate to property securing a loan.
Whether there are taxes, property insurance or other related items that
need managing, ALS-AE provides integration with ALS-Servicing Manager
to accommodate all the needs of the escrowed loan portfolio.
Home Equity Loan Servicing Flexibility
FIS' ALS Servicing Manager is a highly sophisticated, scalable retail lending
software package that is particularly well-suited for the home equity
business. The system provides automated account management and
proactive customer care for the life of a loan. ALS Servicing Manager's
modular construction supports a wholly integrated accounting system that
streamlines billing, interest accruals, fee calculations and assessment,
payment processing, delinquency management and myriad customer
service functions. Because all attributes of a loan product are assigned to
independent but interconnected modules, lenders can change selected
product parameters (e.g. interest rate or insurance premium) without having
to reprogram the software.
Plastic card access for lines of credit is fully supported in ALS Servicing
Manager, including card cross referencing, card reordering, full card
information availability, and card pre-authorization - allowing vendors to
check available credit amounts online. ALS Servicing Manager offers full
stop-hold processing to support home equity lines of credit and card access.
Check access is also available, as well as restricting access to automated
teller machines (ATMs) or over the counter.
Fidelity
National
Information
Services
fnfis.marketing@
fnis.com
00888.323.0310
(US)
00501.220.4999
(International)
www.fidelityinfo
services.com
Home Equity Lending
ALS Servicing Manager offers a credit line with an installment option, which
allows the lender to set up a credit line amount based on the equity in the home.
The borrower can use this for a variety of purposes, with repayment terms
dependent upon the use of the funds. For example, if a borrower purchases
an automobile with part of the proceeds from a home equity line of credit, the
repayment terms for the automobile can resemble those of an installment plan,
while the entire loan amount still retains the convenience of a single account.
Other ALS Servicing Manager Features
Extensive Back Dating - Improves customer service and ensures data
integrity by automatically reconstructing a loan and generating appropriate
adjustments with no need for time-consuming, error-prone manual changes.
Revenue Drivers - Optimizes fee revenue through unlimited fee definitions
for any specific service linked to a loan product and supports multiple
insurance offerings.
Customer Relationship Management - Provides a customer view of all loans
associated with a customer (directly and indirectly liable) and includes built-in
reporting features to analyze loan products.
Home Equity Operational Efficiencies
The account management capabilities of ALS Servicing Manager provide the
following operational efficiencies that streamline home equity operations and
improve profitability:
Reduced Customer Service Research Time -
Effective-dated inquiry capabilities facilitate rapid researching of transactions
on accounts and viewing of transaction effects. Inquiries can be effective-dated
back to loan funding, and accounts can be viewed online, at any point in time,
for improved customer service and online, real-time research.
Improved Back-Office Adjustment Efficiency -
Robust online processing includes unlimited back-dating over any transaction
and updating of all online fields. Back-office staff can easily reverse transactions
online and the system automatically reconstructs the account with recalculations
from the point of reversal forward. This feature eliminates multiple transactions
and manual calculations during the adjustment process, eliminates overnight
adjustment delays and reduces data entry errors.
Automated Variable Rate Process - Processing is centrally controlled and
variable-rate changes can be future- or back-dated. The system automatically
adjusts each account tied to the changed index. Manual intervention and human
error is eliminated as accounts are reconstructed online, accruals are adjusted,
payment splits recalculated, transactions performed
after rate changes are reversed, and adjustments are
sent to the general ledger on a current-day basis.
Improved Customer Relationship
Management - Key customer information is tracked
and provides a complete customer view of all direct
and indirect liabilities. It also presents combined
statements without hard-coded programming or
manual intervention.
Increased Insurance Processing Accuracy and
Efficiency - Insurance data is stored and tracked
online for billing insurance. Multiple insurance
types can be tracked or billed separately from note
amounts. Online payoff quotes automatically identify
insurance portions and calculate rebate amounts.
Back-dating and effective-dating features facilitate
force-placed insurance and insurance cancellation
with automatic financial adjustments.
Home Equity Revenue-Producing
Opportunities
ALS Servicing Manager's feature functions provide
a variety of opportunities for generating additional
revenue:
Prepayment Penalties - The system can charge
an early payoff penalty to recoup origination
expenses on accounts that pay off within a defined
period after contract date.
Penalty Interest - Automatically increases interest
income based on an individual's account
payment habits.
Automated Line-of-Credit Fees - Line-of-credit
processing includes automatic fee generation based
on specific advance, unused balance and over-line
scenarios. These fees can vary by product, state or
line-access type.
Property-related Items Supported by ALS-
AE Taxes - Taxes levied on real property by city,
township, school district, county, or any
governmental unit.
Special Assessments - Assessment for
government projects for local improvements, the
cost of which is divided among property owners.
Property Insurance - Fire and hazard insurance,
as well as extended coverage policies, or additional
coverage for unusual hazards such as floods.
Personal Insurance - Life, accident, health or
disability types of insurance to protect the borrower
in case of sickness, injury or death.
Default Insurance - Either private or governmental
insurance to protect the lender against loss due to
borrower default on the loan.
Fidelity
National
Information
Services
fnfis.marketing@
fnis.com
00888.323.0310
(US)
00501.220.4999
(International)
www.fidelityinfo
services.com
Fidelity
National
Information
Services
fnfis.marketing@
fnis.com
00888.323.0310
00www.fidelityin
foservices.com
In addition to these property and loan-related items, escrow accounts may
be used to account for funds where loan-level accounting is required. The
lender has an accounting of the funds by loan although they may prefer not
to report these items to the borrower. These could include funds for loss
drafts, reserves, contingent interest, lender-placed coverage or interim
type fees.
Advanced Escrow has five escrow balances available to account for different
types of escrow funds. The contents of each balance depends on the
institutional needs. The determination of the number of escrow balances
needed depends on the various requirements of the escrows. These
requirements are:
00Overdraft Limits by Escrow Types
00Escrow Balance Payment (required for full payment
processing tolerances)
00Escrow Analysis by Balance (allowing for certain escrows to be
excluded or included during analysis)
00Interest on Escrow Paid on Selective Balances
00Balances Reported to the Borrower
00Separate General Ledger Totals for Tax and Insurance Disbursements
Unlimited escrow bills can be tied to each escrow balance. Advanced Escrow
classifies escrow bills into three general types for reporting and processing
purposes - insurance, taxes, and miscellaneous insurance.
Setting New Standards with ALS
The FIS ALS suite is cut from the quality mold of FIS' market-driven products
for the financial services industry. The depth and breadth of the integrated
ALS package is unmatched by any vendor and extends beyond lending
automation to include training, consulting, application support, customer
relationship management and professional business services. After 40 years
of developing, updating and customizing lending software, FIS continues
to vigorously meet the challenge of managing technology in a volatile,
increasingly competitive business environment. FIS ALS sets the standard
for next-generation lending solutions for the financial services industry.
November 2007
B048
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