Ala.'s Independent using PC-based compliance-origination software.

In a move both to strengthen compliance and to automate its loan origination, Bank Independent in Sheffield, Ala., has installed personal computer-based software from Formation Technologies Inc.

The bank, which licensed Formation's Pedestal loan origination software, had previously used the Denver-based firm's LoanCalc system.

Pedestal represents a set of PC-based products designed to ensure compliance with federal and state regulations as well as to provide accurate and consistent documentation. With one interface, one tailoring tool, and a data base. Pedestal automates all origination functions for an array of consumer and commercial loans, including mortgage and automobile loans.

Bank Independent is running Pedestal in an IBM OS/2 environment.

With $220 million of assets, Bank Independent operates 10 branches in a two-county area known as the Shoals. The bank has recently increased new business by 20% with an influx of former customers of a neighbor recently acquired by a regional bank.

Joey Oden, Bank Independent's vice president of data processing, said that with this new business, the goal is to shift the tasks associated with compliance from the bank's staff to Pedestal.

Marc Jalbert, Formation's manager of national accounts added that the system reduces errors.

"Handling compliance manually is an error-prone process," he said. "With Pedestal, the banker no longer has to type the same information into 10 different documents. You type it in once and Pedestal puts it into the proper documents."

Independent is currently running Pedestal's Mortgage Publisher and Platform Publisher modules.

Platform Publisher is designed to guide the bank's staff through every step required to gather account information and to open interest-bearing accounts. The system automatically calculates annual percentage yield, savings fees, check charges, and all other disclosures required by the Truth-in-Savings regulations.

Mortgage Publisher allows Bank Independent to automate the mortgage process from application to closing and meets all documentation requirements for the secondary marketplace.

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