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ComplianceEase Offers System Essential to Doing Business Effectively in the Secondary Market
- A real-time, industry-standard solution utilizing artificial intelligence technology -

San Francisco, Calif. - February 23, 2004 - (BUSINESS WIRE) - February 23, 2004 - ComplianceEase, a division of LogicEase Solutions Inc. (ComplianceEase®), announced today that its flagship product - PredatorAnalyzer™, the industry-standard automated compliance system, provides a very effective and efficient tool to help satisfy criteria of rating agencies when aggregating loans into residential mortgage-backed securities (RMBS).

A growing number of major originators have now turned to technology-based filters in their regulatory compliance process. This is largely because most rating agencies now require the exclusion of certain types of loans from RMBS transactions in order for the transactions to be rated. The agencies have imposed these new requirements in order to address assignee liability and uncapped damages language in certain pieces of legislation. Given the large and growing number of states for which rating agencies require additional procedures, many lenders need automated solutions to manage compliance. Well-known mortgage industry lawyer and ComplianceEase advisory board member Wright Andrews noted, "Without adequate measures to ensure compliance, many lenders are having to reduce or even eliminate significant portions of their business in high-risk states such as New Jersey. Cost-effective automated compliance solutions like ComplianceEase's provide industry with essential new tools to address these compliance challenges."

With numerous calculations required for each loan and a continually growing list of affected jurisdictions, lenders and security issuers must turn to advanced technology in order to continue doing business in the secondary market. Jason Roth, vice president, explained, "In their special report, 'Can You See Me Now? - Screening for RMBS Predatory Lending Loans', Fitch Ratings stated that the secondary market must use a technology-based system such as ours in order to receive credit for their compliance process. Fitch's position is causing more companies to turn to such automated solutions." Addressing the benefits of using the ComplianceEase solutions as an independent audit, Mr. Roth added, "Because our system does a complete recalculation of all of the terms of a loan in addition to detecting high-cost and potentially predatory loans, it functions just like a third-party performing due-diligence by hand; but does so more accurately, in a fraction of the time, and at a lower cost than most due-diligence companies. Fitch very clearly states that they see independent due-diligence as more valuable than in-house diligence, so PredatorAnalyzer™ is the most sensible way to satisfy those requirements."

With augmented procedures required by the secondary market and institutions closing up shop entirely in some states, there is now a clear competitive advantage to using ComplianceEase's suite of solutions. Now that Fitch and other rating agencies are aware of the power of an automated compliance solution, the industry is likely to start seeing reduced credit enhancement levels for employing such a solution. Mr. Roth noted, "There may very well be a business opportunity waiting to be developed in jurisdictions like New Jersey. An institution armed with technology solutions from ComplianceEase will be at an advantage in the marketplace when it comes to secondary market requirements and doing business in higher-risk jurisdictions. The bottom line is that the return on investment could be huge."

About ComplianceEase®
ComplianceEase, a division of LogicEase Solutions Inc., headquartered in San Francisco, California, is a premier provider of intelligent business solutions to the financial services industry. 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 also provides professional services, and consulting services. For more information on ComplianceEase, visit www.ComplianceEase.com.

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