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ComplianceEase Offers Predatory Lending Compliance Certification for Wall Street Rating Agencies

San Francisco, Calif. - June 20, 2003 - The ComplianceEase (CE) Division of LogicEase Solutions Inc. announces automated mortgage lending compliance solutions tailored to the residential mortgage-backed securities (RMBS) market. Recently enacted high-cost home loan or "predatory lending" laws in states such as Georgia, New York, New Jersey and New Mexico impose complex, non-standard assignee liability provisions. These laws impose potential unquantifiable damages on subsequent holders of residential mortgage loans, including securitization trusts holding mortgage loans from these states. In response to compliance difficulties with the state and local "predatory lending" laws, Wall Street rating agencies now require stronger representations and warranties and additional due diligence in connection with the purchase of residential mortgage loans.

The absence of appropriate policies and due diligence will mean that traditional pricing and structure norms for RMBS transactions will be disrupted. For example, on June 5, 2003, Fitch Ratings (Fitch) announced new rating criteria in response to the 'New Jersey Home Ownership Act of 2002' to be effective November 27, 2003. One of the criteria is that after the effective date in order to rate RMBS containing any New Jersey loans, Fitch must receive a certification from an unaffiliated third party that has performed transactional level due diligence on such loans. The certification must include a recalculation of the APR based on the interest rate and finance charges from the actual loan documents.

The ComplianceEase PredatorAnalyzer product provides loan-level certifications with pinpoint recalculations, at a fraction of the cost of traditional due diligence methods. Moreover, CE's PredatorAnalyzer uses natural language processing to assure compliance with all current predatory lending laws, rules and regulations. PredatorAnalyzer not only confirms whether a particular loan transaction is a "high-cost" or "covered" loan, the system provides real-time, detailed analysis and verification throughout the loan origination, funding, and secondary market process. The CE system is available in an ASP hosted or enterprise model, and may be custom-configured to specific lender, investor, rating agency and securitizer requirements. Lender's use of this automated solution will ensure that mortgage loans continue to be eligible for securitization in RMBS pools. Given the cost of and speed with which the necessary due diligence must be accomplished, automated compliance solutions provide the best method for RMBS originators and securitizers to assure compliance with the rash of new state and local real estate lending laws and regulations.

Donald Lampe, a legal expert on anti-predatory lending laws and a member of CE's Advisory Board, commented, "The PredatorAnalyzer confirms whether a loan is 'high cost' or 'covered' and performs all the required recalculations at the transactional level. Secondary market participants receive unparalleled assurance of compliance with these complex new laws. I believe that CE solutions will reduce, if not eliminate, the disruption to the secondary market caused by the assignee liability provisions in the recent state predatory lending laws. CE's clients welcome the opportunity to use the PredatorAnalyzer to conduct loan-level diligence and issue compliance audit certificates to meet the new RMBS market sector requirements."

About ComplianceEase
ComplianceEase, a division of LogicEase Solutions Inc., has been a leading provider of intelligent business solutions to the financial services industry since 2000. Its ComplianceEase platform provides the industry's first automated compliance solutions utilizing advanced artificial intelligence reasoning and decisioning technologies as well as natural language processing. ComplianceEase powers beginning-to-end solutions at a fraction of the time and cost of the traditional approaches, while providing better accuracy and integrity. ComplianceEase's products and services include the PredatorAnalyzerTM, ComplianceAuditorTM, BenefitAnalyzerTM, professional services, and consulting services. For more information about ComplianceEase, please visit www.ComplianceEase.com.

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