BSI Financial Announces Strategy to Purchase Mortgage Servicing Rights

Announcement Follows a Capital Raise in excess of $140 million

IRVING, Texas, February 25, 2019 - BSI Financial Services, a mortgage servicing operations platform that is digitally transforming the mortgage loan process throughout the life cycle of a loan, announces that it has partnered with two institutional investors to purchase mortgage servicing rights (“MSR”). This capability is funded by a capital raise in excess of $100 million, which was nearly three times the amount targeted. BSI Financial will source, perform due diligence and service MSR assets acquired in partnership with these investors.

"With our new MSR acquisition capability we offer our existing subservicing clients as well as other lenders interested in selling servicing rights the value of convenience and liquidity," said Gagan Sharma, BSI Financial president and CEO. "We now provide a connection to the capital markets in addition to our subservicing and other a la carte services."

Lenders that elect to subservice their loans with BSI Financial will reap economic benefits, efficiencies and flexibility that few other servicers can offer. Lenders who partner with BSI Financial for servicing and sub-servicing can now elect to either subservice or sell MSRs on either a bulk or flow basis. By virtue of BSI Financial's capital market relationships, lenders will enjoy accelerated cash flow and reduced operating risk that can arise when dealing with aggregators.

Loans will be boarded on BSI Financial's ASSET360TM platform, which uses exception-based processing to identify data anomalies during loan boarding and over the life of the loan, reducing errors that may create compliance risk. In addition, ASSET360 offers lenders real-time visibility into loan status and performance through a secure lender portal.

As part of its servicing capability, BSI Financial is also offering investors a loan recapture origination service for their loans. This capability is backed by an AI-driven engine that provides the BSI Financial loan origination team predictive analytics. BSI Financial will soon be adding this analytics capability to its subservicing offering.

About BSI Financial Services

Led by a seasoned team of financial industry professionals, BSI Financial provides mortgage servicing and special servicing, loan quality control, REO and asset management services, and life-of-loan performance reporting using advanced data analytics tools.

Leveraging a 30-year performance track record, BSI Financial offers clients customized solutions using proprietary digital technology such as BSI ASSET360, an advanced form of RegTech. BSI ASSET360 provides daily reporting on loan condition using exception processing that applies 600 business rules across 10,000 loan-level data elements that are updated daily.

BSI Financial is approved as a servicer by Fannie Mae, Freddie Mac, FHA, VA, the Federal Home Loan Banks and several private investors, and is approved as an issuer by Ginnie Mae and is listed in Standard & Poor's Select Servicer list. It is ranked 1,756 on Inc. Magazine's list of the fastest growing private companies in the U.S. BSI Financial’s business operations are located in Titusville, PA; Irvine, CA; and Irving, TX, where it also maintains its corporate headquarters. For more information, visit www.bsifinancial.com.