Pioneering Web-enabled Technology Solutions for the
$1.5 Trillion Mortgage Industry
Company Overview
easyQual.com (OTC BB: EQLC) is an industry leader of information technology solutions and a leading innovator for the distribution of financial products and services to select vertical markets. Through its three wholly owned subsidiaries, easyQual.com delivers to the $1.5 trillion U.S. mortgage industry an automated and web-enabled approach to mortgage underwriting and loan application processing.
ENTRUST MORTGAGE: The foundation of easyQual.com is Entrust Mortgage, Inc. Entrust is a wholesale mortgage banking company licensed in 40 states and specializing in niche mortgage products, including first and second mortgages and home equity loans. Entrust Mortgage has contracted with many of the nation’s largest financial institutions.
FOCVS: FocVs Technologies is an Application Service Provider (ASP) providing end-to-end application solutions for the mortgage brokerage industry, financial advisors, and small- to medium-sized business enterprises. As an ASP, FocVs offers online access to sophisticated and tightly integrated programs or software applications from a centrally managed facility.
A.I. DYNAMICS: A.I. Dynamics is a software development company that has engineered a unique and proprietary rules-based decisioning engine. This dynamic artificial intelligence engine is able to – in a matter of seconds – provide lending decisions for complicated mortgage loans as well as other financial products, such as automobile loans and credit cards.
Each subsidiary operates successfully as a standalone division, and collectively, they provide the marketplace with a superior and diverse network of financial products and services. Indeed, the Company’s strategic development of an Internet-oriented business model has enabled easyQual.com to position itself as both a leading provider of niche financial products, as well as one of the premier innovators and incubators of financial technology.
The Market
Mortgage Bankers Association of America estimates that total mortgage industry loan volume last year was approximately $1.5 trillion, up from $834 billion in 1997.
The U.S. residential mortgage debt outstanding exceeds a staggering $4 trillion, making it the largest consumer asset class.
Industry Growth
The Forrester Group projects online lending to reach $44.7 billion by the end of 2000, and 167.6 billion by 2003. Studies by Myers Internet Services and Killen & Associates project as much as 30 to 40% penetration in four years.
According to Morgan Stanley Dean Witter, by 2005, 10 to 20% of mortgage originations will start with online applications. This conservative projection, if achieved, would represent approximately $100 to 300 billion in volume with a potential for $1-2 billion in revenues.
Market Opportunity
Online mortgage shopping by customers is creating extraordinary pressure for a new industry standard. Mortgage lending is particularly well suited for the web because the big-ticket nature of mortgages motivates in-tense product research and price shopping, which the Internet facilitates. Additionally, the "younger" crowd that is the largest consumer of mortgages overlaps heavily with Internet usage demographics.
easyQual.com is uniquely positioned to capitalize on these trends and enter the industry revolution at the ground floor with a new automated standard designed to 1) appeal to thousands of brokerage firms wanting to compete in the new Internet reality and 2) dramatically improve service to the exponentially increasing market of mortgage customers now online.
Corporate Objectives
easyQual.com is systematically expanding its products, services and technology solutions to capitalize on the opportunities presented by the escalating demand for select financial products. The Company’s goal is to achieve a 3% share of the sub-prime online mortgage shopping market within the next five to eight years, and to solidify its position as an industry leader and distributor of technology solutions, services, and select products for the mortgage and financial services industries.
Growth Strategy
Fast track the development and release of Version 2.0 of the easyQual.com website.
Expand the Company’s network of affinity partners to enhance exposure of easyQual.com products and services to the consumer market segment.
Expand core business by servicing existing business captured by affinity partners, and through extensive customer relation management.
Develop new marketing relationships and secondary market investors (current secondary market investors include Bank of America, Conseco, Bank One, IMPAC, First Union, and GMAC Mortgage).
Offer additional products to affinity partners’ memberships or clients.
Fact Sheet
Share Structure
Outstanding 14.5 M
Fully Diluted 16.6 M
Public Float 4.6 M
Market Cap $47.0 M
Corporate Data
Founded 1996
Fiscal Year End Dec. 31
Annual Sales $3.4 M
Employees 55
Head Office Denver, CO
Branch Offices
Roseville, CA
Las Vegas, NV
Subsidiary Companies
Entrust Mortgage
FocVs Technologies
A.I. Dynamics
Corporate Contact
easyQual.com
6795 E. Tennessee Ave.
Denver, CO 80224
Phone: 303.322.6999
Fax: 303.320.4303
Web: www.easyqual.com
Investor Relations
The Axis Group
900-1055 W. Hastings Street
Vancouver, BC V6E 2E9
Phone: 604-685-9177
Fax: 604- 683-4019
Kevin Brawley
kbrawley@axisir.com
Recent Developments
May 15, 2000
easyQual.com launches its stated-income line of credit application process, enabling the Company to offer 15-min unsecured loan approvals via Internet or telephone.
May 8, 2000
Entrust Mortgage increases its warehouse line of credit with First Collateral Bank by $5.0 million. The additional credit facilitates the increased business generated by Entrust’s new proprietary subprime product and 125% loan-to-value cash-out product.
May 4, 2000
easyQual.com is approved by the NASD to begin trading of its common stock under the ticker symbol, CNNB
May 1, 2000
FocVs Technologies launches the first component of its test environment for the Application Service Provider. The initial ASP for the B2B market has been vertically designed for the mortgage industry.
April 26, 2000
Entrust receives HUD Eagle status which will enable the Company to transact FHA Title I and Title II loans on a delegated basis nationwide.
April 06, 2000
Entrust Mortgage enters into a contract with eBoatLoans to solicit its applicants for other financial products. eBoat handles approximately $30 million per month in boat loan applications, for which most applicants qualify for loan products offered by Entrust.
March 28, 2000
Entrust Mortgage is issued correspondent approval for the sale of IMPAC’s high loan-to-value, no-income-verification mortgage product. In 1998, Entrust management was responsible for selling in excess of $300 million of this product.
Disclaimer: The information contained in this profile is not intended to be a complete discussion of information regarding all of the current and/or intended business activities of easyQual.com, Inc. This profile may contain forward-looking statements which are based on current expectations, estimates and projections which may differ from actual results. Any opinions expressed in this profile are statements of judgment as of the date of publication and are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. Please visit the easyQual.com website at easyqual.com for additional corporate information and links to SEC Public Filings.
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