Irvine, California March, 2008 – Commerce Velocity, a leading and established mortgage banking solutions provider, announced the launch of AssetX and Optimizer, a two-product suite which together form a comprehensive solution for managing non-performing or distressed assets, specifically focusing on asset acquisition and loan modifications.

In recent years the U.S. housing and mortgage markets experienced unprecedented highs; both in terms of home values and number of traditional and non-traditional loans being granted.  On the flip side, factors such as declining home values and the fact that many adjustable rate mortgages have reached the payment re-set date are now having dramatic negative affects.

The number of foreclosures is at historic highs and more and more individuals are defaulting on their consumer debt and mortgage obligations.  Additionally, small and large financial institutions alike are experiencing significant liquidity problems and many of them have been unable to continue with their operations.

With this challenge in mind, Commerce Velocity transformed its loan origination technology to provide loss mitigation and asset management solutions for the financial industry.  Commerce Velocity’s asset management solution helps investment banks, servicing organizations, and loan modification companies analyze and evaluate property, loan, and borrower data to assess risk and mitigate loss, all while using a streamlined and consistent approach.

As loan portfolios are being bought and sold from one financial institution to another, buyers and sellers need tools to help them assess the collateral’s current and projected values as well as to determine desired sell/buy prices.

AssetX, the initial component of the two-prong system, provides portfolio stratification, sensitivity analysis, intelligent and consistent decisioning, and pricing for loans on a batch/multi-loan basis.  This solution is primarily intended for investors, servicers and new hedge fund firms looking to qualify and analyze the loans they wish to purchase.

By applying internal or third party risk and valuation models, market data, and unique acquisition guidelines, AssetX ensures that investment banks make more profitable asset acquisitions.

Optimizer affords servicers or other third parties, such as loan modification companies the same level of careful and analytical evaluation as AssetX, but on a loan by loan basis.  For servicing organizations that are challenged by increasing delinquencies, Optimizer determines optimal resolution outcomes by enforcing workout guidelines, applying NPV calculations, and cash flow projections, while ensuring consistency across the decisioning process.  Some of the features of Optimizer include:

• Guides collectors of information by using interview scripts
• Captures updated borrower data
• Retrieves and decisions against third-party data (i.e. Credit, AVM)
• Provides collectors/negotiators with eligible workout scenarios, including prequalification for potential FHA Refinancing
• Applies NPV and Cash Flow projections
• Ranks results in order of favorability
• Generates conditions and provides conditions management tools
• Integrated Document Imaging
• Performance Dashboards
• Allows business users to quickly modify workout logic
• Extend directly to borrowers via our Borrower Resolution Portal
• Provides workout results and loan modification documents in PDF format