IBM and Fidelity National Financial Announce Redesigned Home Mortgage Processing System

Fidelity Adopts IBM Software and Servers for Processing Nearly Half of U.S. Mortgages

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JACKSONVILLE, FL & SOMERS, NY - 26 Feb 2004: Fidelity National Financial Inc., one of the world's largest providers of IT solutions to the mortgage and financial services industries, announced today it has chosen IBM technology to assist in the development of a new system for processing nearly half of the United States' 55 million home mortgages.

Fidelity National Financial, through its Fidelity Information Services subsidiary, is the market leader in mortgage processing. It provides mortgage servicing technology for more than 24 million existing loans, with a total balance of $3 trillion, on behalf of financial institutions that include seven of the top 10 U.S. mortgage lenders. Fidelity provides the premier, comprehensive loan servicing system that accounts for mortgagor payments and investor funds, as well as facilitates customer interactions and resolves non-performing accounts.

As part of a multi-million-dollar agreement, Fidelity has chosen IBM's WebSphere Internet infrastructure software, or "middleware," as the backbone of a new, Web-based system designed to speed up mortgage processing and create more seamless communication between Fidelity's network and those of its client financial institutions.

Fidelity also is purchasing IBM's DB2 database software and IBM Rational development tools, and has replaced existing mainframe computers with three two new IBM eServer z990 "T-Rex" mainframes. A third T-Rex was implemented and is devoted specifically to development. The recently installed mainframes already have resulted in a significant increase in the number of loans processed per minute.

IBM and Fidelity have been jointly designing the new processing system at sites including IBM's Washington Systems Center in Gaithersburg, MD, and IBM's High Volume Web Site center, which is based at IBM's Silicon Valley Lab and works closely with more than 150 customers who operate some of the world's largest Web sites.

"As historically low interest rates fuel the U.S. housing market, banks and other mortgage lenders seek increased automation and efficiency in the mortgage servicing process so they can meet increased demand while containing costs and enhancing customer service," said Hugh Harris, President of the Mortgage Division of Fidelity Information Services. Harris further stated, "As part of its plans to re-architect its servicing platform, Fidelity is relying on a new Web-based system to reduce paperwork and other manual processes. Additionally, because the system is based on Java and other open standards supported by IBM, it more easily supports the exchange of information with its clients' disparate IT systems."

"In processing 24 million mortgage loans, our system must handle more than 1 billion individual computer transactions every month," said Joe Nackashi, Chief Technology Officer, Fidelity Information Services. "Not only must we do this with the utmost reliability, but we need to be responsive to a mortgage industry that is rightly demanding more speed, efficiency and productivity. We've chosen IBM as our primary technology partner because they have the level of industry-specific expertise and technical innovation that we need."

"We're delighted to be Fidelity's closest partner as it breaks new technological ground to better serve its customers," said John Swainson, General Manager, Application and Integration Middleware, IBM. "We're committed to Fidelity because we see them as an important company that can benefit from IBM's industry-specific expertise and our e-business on demand approach, which helps companies use IT resources more efficiently and quickly respond to changing customer requirements and market conditions."

As part of this agreement, Fidelity will use a full complement of WebSphere middleware products.

The new system will support both Fidelity's customers that receive the company's services under an Application Service Provider model and its traditional license customers.

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