ARC Systems(TM), a leading mortgageautomation provider, announced at the Mortgage Banking Association's 92ndAnnual Conference and Expo (MBA Booth #221) their agreement with MatrixFinancial Services Corporation (Matrix) to provide a core system. Using thenew system, Matrix will develop their flow business and manage their existingcorrespondent business by implementing ARC Systems' award-winning LendTech(TM)product. Matrix plans to launch the implementation in the first quarter of2006. ARC Systems' web-based platform will automate Matrix's decisioning onpurchases of closed loans. LendTech will perform due diligence for loan poolson a bulk basis and a comprehensive underwrite for individual loans on a flowbasis. Additionally, ARC Systems will provide an interface to a third-partyvendor for compliance screening. LendTech's real-time decisioning functionality will be leveraged acrossMatrix's correspondent lending business to make accurate, real-time decisionson a bulk and flow basis, as well as to provide a solid foundation forestablishing processes and managing operations as their business grows. Inpreserving the quality of Matrix's loan pools, LendTech provides the loanquality metrics tool to see 100 percent of what is in the loan pools, ratherthan a sampling. This will ensure the loan pools Matrix creates through theflow basis and purchases through the bulk basis are accurately distributedamong appropriate capital markets. For Matrix's flow line of business,LendTech will underwrite loans purchased from correspondents around thecountry. The LendTech technology will help Matrix develop the most profitablecombinations of loan pools. With LendTech's quick pricing scenariofunctionality, Matrix can run the loan through the system to determine whetherit's the desired rate, lock the rate and perform a full underwrite on the loanapplication. "We have experienced significant growth, and we needed a core system toenhance our business processes to assist us in maintaining our new businessand continued success. LendTech provides the core system that Matrix requiresto implement our correspondent flow program," said Patrick Howard, presidentand chief executive officer of Matrix Financial Services Corp. "Since we'llbe utilizing the core system provided by ARC Systems, we are confident we canprovide a competitive edge to our customer base." "Through the use of our core technology, ARC Systems has enabled numerousother large banking institutions to achieve their business objectives formortgage automation in an efficient and cost-effective manner," said Ed Jones,president and chief executive officer of ARC Systems. About ARC Systems Founded in 1984 and headquartered in Austin, Texas, ARC Systems is aprivately held company providing premier decisioning technology to lendinginstitutions and investment and commercial banks across the United States.With the power to make fast, accurate and consistent decisions at the point-of-sale for risk-based pricing and credit evaluation, ARC Systems' productsempower clients to make smart business decisions. The company's proprietary,patent-pending, rules-based system is used by lenders to provide direct accessto automated underwriting, product/pricing and online loan origination systemfunctionality to their customers, correspondents and brokers. About Matrix Bancorp Matrix Bancorp (Nasdaq: MTXC) is a unitary thrift holding companyheadquartered in Denver, Colorado. Its subsidiaries' operations are conductedprimarily in Colorado, Arizona, Texas and Tennessee. Through its subsidiariesMatrix Capital Bank and Matrix Bancorp Trading, the company is an activeparticipant in the capital markets, secondary mortgage markets, and mortgageservicing market. ARC Systems Media Contact: Michael Perna, Director of Marketing ARC Systems mjperna@arcsystems.com 512.892.5550 ARC Systems Product Contact: Steve Jenkins, Vice President of Business Development ARC Systems sjenkins@arcsystems.com 512.892.5550

Source: PR Newswire