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GROUP DEBUTS SERVICE TO PROVIDE SMALL BANKS WITH ONLINE MORTGAGE CAPABILITIES

Three companies, including mortgage giant Fannie Mae, partner to produce online mortgage software for community banks.

Taylor, Bean and Whitaker Mortgage Corp., a wholesale lender based in Ocala, Fla., recently launched Community Banks Online (CBO), a venture between TB&W, Fannie Mae and Dexma, an application software provider based in Minneapolis, to provide Web-based mortgage transaction capabilities to small financial institutions.

"It's part of TB&W's larger offering really designed to help banks respond to the rapid development of online banking," said Jason Moore, division president of CBO. "There's been a movement within the community banking market towards online transaction-based banking, and this is an attempt to help them make that transition."

The CBO offering, currently used by 33 bank customers, includes online "pre-approval applications" designed to entice consumers researching mortgages online to establish a relationship with their community bank.

"The pre-approval application as well as the online application runs a full credit and collateral check and downloads all of that information into the 1003 application," said Moore. "When a customer goes to a bank's co-branded CBO site and chooses to view the approved application, they actually download a letter on the spot saying, 'Congratulations, you've been pre-approved for a certain amount with your community bank,' and it gives all of the pertinent information."

Even though the concept of originating loans over the Internet has fallen out of favor, TB&W hopes to have found the right formula. "Products are being bought and sold on the Internet every day, and it's only a matter of time before this happens with the mortgage industry," said Moore.

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