Franklin Financial Chooses MortgageFlex LOS

Hosted Model, Company History are Deciding Factors

Jacksonville, Fla. (February 23, 2009) - Franklin Financial, Ladera Ranch, Calif., has chosen the LoanQuest Residential Lending System from MortgageFlex Systems, Inc., a leading provider of lending and servicing system solutions, for their loan origination needs.

Franklin Financial is returning to mortgage banking after a period of loan brokering, requiring a “revamping of systems and procedures,” according to Gretchen Verdugo, chief financial officer, who says the company wanted to “make sure we had the top personnel and technology in the business to originate a variety of loans, including FHA-insured and conventional agency product.”

Verdugo says the selection of LoanQuest reflected Franklin Financial’s confidence that the technology can be “deployed quickly and MortgageFlex is best suited to meet our needs as we continue to expand and grow our business.” She cites a number of end-to-end capabilities in the new system, including origination, client management, interfaces with third-party vendors, funding and selling/securitizing mortgages.

“We will be able to upload all loan-level information with respect to pipeline and fundings and internal, as well as third-party costs, enabling us to track profitability by channel,” she adds.

Franklin Financial required a real-time system that could be accessed from any of their locations and provide loan officers with the latest available proprietary, private, government and agency products, promptly and reliably. MortgageFlex will be hosting the application in their SAS 70 II certified data center and providing professional services for product and loan program set-ups.

“This model will be very beneficial for Franklin Financial,” says Craig Bechtle, chief operating officer, MortgageFlex, “especially as they re-configure their lending operations, because that requires an LOS that is a workflow tool and not just a data repository. Above all,” says Bechtle, “this allows Franklin Financial to concentrate on their core business while we focus on the technical aspects,” adding that a hosted design also provides a secure environment, without the cost expenditure. “It’s a true turn-key experience for them”, Bechtle explains.

MortgageFlex Systems’ technology assures compliance with the most stringent Statement on Auditing Standards, or SAS No. 70, an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). A type II SAS 70 report is the only acceptable method of obtaining third-party assurance regarding the controls at a service organization. Security "certifications" are excluded as acceptable substitutes for a type II SAS 70 audit report.

“A SAS 70 II review is a rigorous process but we feel it is essential to provide our clients with the highest level of security possible,” concludes Bechtle.

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About MortgageFlex Systems Inc.

MortgageFlex Systems, Inc., a provider of innovative software and systems solutions to mortgage companies and lending institutions, was named one of the “Top 50 Providers of 2008,” by Mortgage Technology Magazine. Headquartered in Jacksonville, Fla., the company, which began operations in 1980, launched LoanQuest^™ in 1984, the industry’s first fully integrated product suite designed to simplify loan origination.

For information about products and services, please call 800-326-3539 or visit www.mortgageflex.com. Media inquiries may be directed to Joyce Saunders, Director of Marketing, at 904-356-2490, ext. 3260