LIXI 2.0

AN INDUSTRY OPPORTUNITY

LIXI 2.0 – an industry opportunity

What is LIXI 2.0?What is LIXI 2.0?What is LIXI 2.0?What is LIXI 2.0?

Our objectivesOur objectivesOur objectivesOur objectives

The componentsThe componentsThe componentsThe components

ImplementationImplementationImplementationImplementation

Next StepsNext StepsNext StepsNext Steps

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What is LIXI 2.0 ?

Driven by a fundamental requirement to reducethe cost, complexity, and time for change

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What is LIXI 2.0 ?

� A world’s-first approach to ‘electronic guidebooks’

� A fresh look at data messaging standards for the lending industry

� A renewed “language of lending”

� An industry opportunity

� Based on core requirements from LIXI members

� Available now

A A A A connected, communicating communityconnected, communicating communityconnected, communicating communityconnected, communicating community

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Overall objectives for LIXI 2.0

� Reduce the costs Reduce the costs Reduce the costs Reduce the costs of working with business partners along the lending chain

� Increase ability Increase ability Increase ability Increase ability to bring new products to market and create quick changes while maintaining differentiation

� Enhance the industry’s ability to respond to regulatory changesrespond to regulatory changesrespond to regulatory changesrespond to regulatory changesquickly and efficiently

� Protect the lending industry Protect the lending industry Protect the lending industry Protect the lending industry by providing an open, standards-based environment for commercial providers and suppliers

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The components of LIXI 2.0

True StandardsTrue StandardsTrue StandardsTrue Standards

� Define every piece of data shared across the lending industry –over 2000 terms in the Data Dictionary

� A universal super-set data message standard – the CAL 2 schema

� Conformance testing to ensure that CAL 2 data files conform to the specifications

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The components of LIXI 2.0

Electronic GuidebooksElectronic GuidebooksElectronic GuidebooksElectronic Guidebooks

� Contains all the business rules, data logic and print form templates that are currently manually implemented

� Has the CAL 2 and Data Dictionary standards at the core

� Automatically reconfigures lodgement user interface

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The components of LIXI 2.0

Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks ---- BenefitsBenefitsBenefitsBenefits

� Lender control over their own guidebooks

� True standards enable efficient guidebook management

� Verifiable design reduces the time, effort and cost of maintenance

� Direct reconfiguration of the lodgement user interface means no coding or testing delay, no errors

� Guidebooks can be universally distributed – any to any

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Broker Systems

Lender

Systems

Electronic Guidebooks

Data Dictionary

Broker SystemsLender Systems

Lending policy and

document templates

The lender owns the IP within

their electronic guidebooks

Electronic Guidebooks conform to a

LIXI Standard – any lender guidebook

works for any recipient

A Business Analyst can prepare a

guidebook – no coding required

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Broker Systems

Lender

Systems

Data Dictionary

CAL 2Broker Systems

Lender Systems

Lending policy and

document templates

The guidebook can be tested (auto or

manual) prior to distribution

Electronic Guidebook

The guidebook is published and

made available to the distribution

channel, in the lender’s timeframe

Electronic Guidebooks

The guidebook controls the user

interface and prepares CAL 2

applications for the lender

CAL 2 applications

The components of LIXI 2.0

Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks Electronic Guidebooks –––– No Magic!No Magic!No Magic!No Magic!

� Analogous to web browsing experience – defines the screen layout and the forms

� Uses Tabs, Pages and Fields

� Visibility rules

� Content rules

� All field specifications and rules reference the data dictionary terms

� Print forms are just transformations

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The components of LIXI 2.0

Change Management for the StandardsChange Management for the StandardsChange Management for the StandardsChange Management for the Standards

� Must be responsive to industry needs

� LIXI website for form submission, tracking and workflow

� A new Glossary of industry terminology

� Simple additions will have fast turn-around

� Complex changes require collaborative analysis

� Monthly release schedule

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The components of LIXI 2.0

Change Management for the Standards Change Management for the Standards Change Management for the Standards Change Management for the Standards ---- BenefitsBenefitsBenefitsBenefits

� Responsive to industry needs

� Reduces licensee resource requirements and deliver certainty for project timelines.

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The components of LIXI 2.0

Conformance Testing and CertificationConformance Testing and CertificationConformance Testing and CertificationConformance Testing and Certification

� CAL 2 Data must be a subset of the LIXI Data Dictionary

� Guidebook tools to ensure compatibility

� Testing facility to assure all licensees – senders and receivers -that files are compatible

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CERTIFIED

Implementation

For Lenders …For Lenders …For Lenders …For Lenders …

� Software tools for configuration of electronic guidebooks

� Gateway support for CAL 1.x and CAL 2 applications

� Transformation for backward compatibility

� ‘Process’ changes

� Minimal impact on existing systems

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For Brokers …For Brokers …For Brokers …For Brokers …

� Lodgement software to ‘consume’ the guidebooks

� CRM/Q to ‘fork’ the process for CAL 2 vs CAL 1.x lender

� ‘Process’ changes

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Broker Systems

Lender

Systems

CAL 2 applications

Broker System Lender B

Electronic Guidebook

Implementation – Broker Perspective

Guidebook

Maintenance

Lender A

Broker CRM/Q ‘forks’ the

application process

depending on lender capability

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Broker Systems

Lender

Systems

CAL 2 applications

CAL 2

BrokerLender

Electronic Guidebook

Implementation – Lender Perspective

Guidebook

Distribution

CAL 1.x

Broker

CAL 1.x

Gateway

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Lender

Systems

Lender

Implementation – Lender Perspective

Gateway transformation

CAL 2 CAL 1.x

CAL 1.x

Industry Opportunities

� Guidebooks for wholesale and white label distribution

� Cross-sell, by aggregator or by lender

� Direct to consumer

� LMI – true standards

� Attaching valuations and credit reports

� Backchannel / status messaging

� Outsourced services like doc prep – plug and play

� Guidebook maintenance services

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Lender

BrokersLIXI 2.0 message

validation and

delivery

The Future of LIXI Messaging

FHOG LMI

ScorecardingDoc PrepCredit

Reports

Cross-sell

target

Indicative

Full

Next Steps

For Lenders …For Lenders …For Lenders …For Lenders …

� Build a guidebook using the EGB Schema

� Build a transformation, starting from a LIXI template

� Plan for ‘process’ changes

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For Brokers …For Brokers …For Brokers …For Brokers …

� Understand how to ‘fork’ your lodgement process

� Engage with loan writers

Next Steps

For For For For Software vendorsSoftware vendorsSoftware vendorsSoftware vendors

� Enhance broker-side application lodgement software to consume electronic guidebooks

� Enhance CRM/Q software to consume electronic guidebooks and generate CAL 2 applications directly

� Enhance lender gateways to accept CAL 2 data files natively

� Enhance loan assessment platforms to export lending policy in guidebook format

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LIXI 2.0

AN INDUSTRY OPPORTUNITY