Monday April 12, 9:54 am Eastern Time

Company Press Release

SOURCE: ARC Systems

ARC Systems and First Franklin Debut Automated Underwriting System for Mortgage Market

Designed to Automate and Streamline the Loan Approval Process, LT2k(TM) Will Enable First Franklin to Immediately Approve Wholesale Non-Conforming and Subprime Loan Applications

AUSTIN, Texas, April 12 /PRNewswire/ -- ARC Systems today announced that it is providing its LT2k automated underwriting system to First Franklin Financial Corporation, one of the nation's leading non-conforming wholesale and retail mortgage lenders. First Franklin plans to use the Internet-based system to dramatically improve service levels to its more than 6,000 wholesale brokers nationwide. By internally integrating the ARC Systems decisioning engine, First Franklin can render underwriting decisions on non-conforming and sub-prime mortgage loans in 30 seconds or less.

First Franklin has built its competitive advantage in the non-conforming and subprime mortgage markets through its proprietary products Direct Access(SM), Scored Advantage(SM) and Express Valuing(SM). These products, which respectively determine risk-based interest rates, streamline non- conforming documentation and automate the property valuation process, have helped the company at point of sale. By summer 1999, the three products will be configured into the LT2k system and First Franklin's broker networks will be able to provide 30 second loan decisions to their customers.

``The combination of LT2k's speed and efficiency with First Franklin's unique loan products will truly keep First Franklin ahead of its competitors,'' said Ed Jones, CEO of ARC Systems. ``This edge will help First Franklin maintain a leading role in the growth of the wholesale mortgage market.''

ARC Systems' LT2k solution is capable of pulling up to 10,000 credit reports and making 5,000 underwriting decisions per hour. Once First Franklin's specific loan parameters are configured into the system, consumer credit reports will be electronically accessed for real-time information. The application is then processed against a rules-based decisioning system and automated underwriting criteria.

``Customer loyalty is the core of our business,'' said Steve Skolnik, Executive Vice President of Production at First Franklin. ``By continuing to equip our mortgage brokers with highly personalized services coupled now with the speed and security of LT2k, we're making it easier for them to close deals while establishing strong relationships with their customers.''

First Franklin processed subprime originations totaling more than $2 billion in 1998. In 1999, the company projects in excess of $3 billion in wholesale production. First quarter 1999 originations totaled close to $700 million.

About First Franklin

First Franklin Financial Corporation, headquartered in San Jose, California, is one of the leading non-conforming wholesale and retail mortgage lenders in the United States. With offices located across the nation, First Franklin serves the needs of mortgage brokers and borrowers with a wide array of products and services, including its proprietary, credit scored-based Direct Access and Scored Advantage products. For more information on First Franklin call 800-464-8203.

About ARC Systems

Founded in 1984 and based in Austin, Texas, ARC Systems is a custom software developer of Internet-based solutions for relational database applications. ARC Systems' flagship product, LT2k, has an underwriting matrix flexibility that allows for expansion into any industry that performs the basic functions of application, credit documentation, or underwriting any loan that requires a credit check including auto loans, debt consolidations and mortgages. For more information on ARC Systems call 512-444-9732 or visit www.arcsystems.com for a free demonstration.