Webster Offers Mortgages Through Internet-Based Subsidiary

Jan 13, 1999

WATERBURY, Conn., Jan. 13 /PRNewswire/ -- Webster Financial Corporation (Nasdaq: WBST), holding company for Webster Bank, is now offering mortgages over the Internet through its new subsidiary, Access National Mortgage LLC. This new channel of business for Webster results from its recent acquisition of Access National Mortgage Inc., a privately held Internet-based mortgage lender. Access closed $350 million in new mortgage loans in 1998.

Webster has combined its lending expertise with Access's already efficient and profitable Internet-based operations to create a new mortgage origination subsidiary. Access can be found on the Internet at www.discountmortgages.com. Access was founded in 1996 and is based in Wilmington, Massachusetts.

``Webster and Access together create a dynamic force in mortgage lending, combining Webster's automated decisioning and processing capabilities with Access's proven Internet-based origination expertise,'' said James C. Smith, Webster's chairman and chief executive officer. ``This combination enables Webster to develop an innovative national network for distribution of mortgages in an extremely cost effective manner.''

Access' principals -- Brian Scheetz, Sean Marsh and Gregg Smith -- continue as senior officers of the new subsidiary and report to Ross M. Strickland, executive vice president, Mortgage Banking, Webster Bank.

The combination of Webster's breakthrough ``Instant Approval'' loan decisioning process and Access's expertise in originating low-cost mortgage loans on-line will enable Webster's new subsidiary to offer quick turn- arounds, easier availability and competitive pricing to those looking for mortgages. Access will continue to sell all originated mortgages, generating noninterest income.

``Access's proven skill in web-based marketing and originating low-cost mortgage loans through the Internet has already made us profitable,'' said Gregg Smith of Access. ``With Webster's automated processing capabilities, we will be able to greatly expand the availability of our mortgages to a national audience.''

``An Internet-based mortgage lender is a strategic addition to Webster's distribution network of financial services,'' said Ross M. Strickland, Webster's executive vice president for Mortgage Banking. ``Over time, Access will provide a platform for Webster to offer other financial services through the rapidly-expanding world of the Internet. Webster's mortgage originating, processing, closing, secondary marketing and loan servicing experience and its emphasis on quick, hassle-free service for its customers fits well with Access's focus on convenience, speed and low cost.''

In particular, Webster's new ``Instant Approval'' process will enhance the convenience and speed provided by Access through the Internet. ``Instant Approval,'' designed to make obtaining a mortgage simpler and easier for customers, is an electronic mortgage system that provides on-the-spot loan decisions to qualified borrowers.

Webster's ``Instant Approval'' enables borrowers to apply for mortgage loans where and when it is most convenient for them, including their home or office or at any of Webster's more than 100 branches. Using laptop computers, Webster mortgage originators go to the borrower, transmit loan application information electronically and, in most cases, receive a decision and issue a commitment letter within minutes. The decisioning tools Webster uses in ``Instant Approval'' help assess loan quality, enhance process efficiencies and improve loan salability. In addition, as part of the new ``Instant Approval'' system, Webster has re-engineered its mortgage processes, reducing the amount of documentation required by more than half.

Webster Bank was founded in 1935 and is a leading Connecticut-based financial institution. Webster delivers consumer banking, commercial banking, mortgage, trust and investment management services, and insurance services to individuals, families and businesses.

Webster Bank has the number one or number two deposit market share in its primary markets of Hartford, New Haven and Litchfield counties. Webster has $9 billion in assets and operates through a network of more than 100 banking offices, three commercial banking centers, two trust offices and more than 170 ATMs, in addition to telephone banking, video banking and PC banking. Webster is also the second-largest mortgage lender in Connecticut and a leading, full-service commercial lender. Webster Trust, the bank's trust and investment management subsidiary, is the second-largest bank trust company based in Connecticut. Damman Insurance, Webster's insurance subsidiary, is one of the largest full-service agencies in Connecticut.