MBA Annual Technology Conference March 11, 2003 2:00-3:15

1. MBA Annual Technology ConferenceMarch 11, 2003 2:00-3:15 James Owens – RDA CorporationWim Geurden – Microsoft Roger Gudobba – VMP Mortgage SolutionsLee Wright – ALLTEL Information Services The Business Case for Web Services in the Residential Lending Industry

2. Agenda • What are Web Services? • Technical Background on Web Services • Evolving Issues for Web Services • Knowing the Hype vs. Reality about Web Services • How Web Services fit in the Residential Lending Industry • Q & A 2003 MBA Technology Conference

3. What are Web Services? Standards-based Building Blocks for Distributed Computing over the Internet 2003 MBA Technology Conference

4. How about a more useful definition? • Web Services… • Simplify the exchange of data and encourage interoperability between remote systems or systems in a heterogeneous operating environment • Are self describing (WSDL: Web Services Description Language) • Can advertise themselves (UDDI: Universal Discovery, Description and Integration) • Are standards-based (Usually SOAP -Simple Object Access Protocol) • Are language agnostic (i.e., speaks SOAP, not VB or Java) 2003 MBA Technology Conference

5. Some History on Web Services • Native protocols of the Web were not originally designed with transactions in mind (HTML, HTTP) • As distributed computing became more desirable new approaches were introduced: DCOM, RPC, CORBA… • Each solved part of the problem, but not THE PROBLEM • XML (eXtensible Markup Language) evolved as a widely accepted standard for exchanging data • Web Services builds upon XML acceptance and provides a standards-based, language agnostic approach to integrating disparate systems within a heterogeneous operating environment 2003 MBA Technology Conference

6. OK – Great…Why should I Care? • If you are like everyone else in the Lending Industry, you have: • Integration Problems – many systems on many platforms • Vendor Integration Issues – data from third parties (Title, Closing, Appraisal, multiple originations channels, etc.) • Data, Data, Everywhere….yet it is being underutilized in making critical operational decisions • Extending the lifespan of legacy systems (mainframe) • Web Services are uniquely capable of solving these types of problems….quickly, cheaply and relatively non-invasively. 2003 MBA Technology Conference

7. How do Web Services Work? • Web Services reside on web servers • Typically communicate over HTTP protocol (native to Web) • Typically use XML to exchange data • Use SOAP to provide operative metadata that determines type and level of interaction 2003 MBA Technology Conference

8. SOAP Wrapper Example Silly Technical Stuff that you shouldn’t have to care about <SOAP:Envelope xmlns:SOAP="http://schemas.xmlsoap.org/soap/envelope/">   <SOAP:Header></SOAP:Header>   <SOAP:Body>     <m:DoLogin xmlns:m="urn:soapserver/soap:AuthorizationModule">         <UserName>MyUserNameHere</UserName>         <Password>MyPasswordHere</Password>     </m:DoLogin>   </SOAP:Body></SOAP:Envelope> Meaningful Stuff 2003 MBA Technology Conference

9. Web Services are easy… • SOAP is fairly low level…not much fun to deal with • Wide range of toolkits available that abstract SOAP out of the picture: • Microsoft (.NET and previous development environments) • BEA / IBM / Sun for the Java world • Toolkits greatly increase development efficiencies since the programmer does not have to think about the technical details of SOAP – only on the development of functionality <SOAP:Envelope xmlns:SOAP="http://schemas.xmlsoap.org/soap/envelope/">   <SOAP:Header></SOAP:Header>   <SOAP:Body>     <m:DoLogin xmlns:m="urn:soapserver/soap:AuthorizationModule">         <UserName>MyUserNameHere</UserName>         <Password>MyPasswordHere</Password>     </m:DoLogin>   </SOAP:Body></SOAP:Envelope> Need something done Do something Doing it by hand… With a toolkit…. 2003 MBA Technology Conference

10. Why are we here? • The enterprise is an organic beast • Complex technology • Protocol fragmentation • Tightly-coupled architecture • Every system represents liability • Build • Integration is an after thought • Buy • Integration is an add-on Solution - Reduce liability • Reduce the number of systems • Increase system agility 2003 MBA Technology Conference

11. The problem… • Systems are basically departments • Systems are “integrated” with hardwired connectors Purchasing System Onyx SAP Business Intelligence Execute Sales Financials History Inquiry Service Billing Triggers Marketing Trends 2003 MBA Technology Conference

12. Paths of Integration • Data • Data format and container bound • Point-Point • Proprietary Connector Based • Application • Object Model Bound • Point-to-Point • Proprietary Connector based • Service Based • Business Context Bound • End-to-End • Standards Based 2003 MBA Technology Conference

13. XML Web Services • Web Service • W3C Definition: A Web service is a software application identified by a URI, whose interfaces and binding are capable of being defined, described and discovered by XML artifacts and supports direct interactions with other software applications using XML based messages via internet-based protocols • Translation: Standards based messaging architecture to enable any application to talk to any application 2003 MBA Technology Conference

14. Service Message Service Logic State • The service is distinct from the message • The service is an instance of an application or object Policy 2003 MBA Technology Conference

15. XML Web Services Architecture • Standards Based • XML 1.0 - Encoding • XML Schema - Typing • SOAP 1.1 - Packaging • WSDL 1.1 - Description • UDDI – Publishing and Discovery • … • Today we are limited to the types of systems that we can integrate due to lack of standards 2003 MBA Technology Conference

16. What is webservices sweet spot today? 2003 MBA Technology Conference

17. SOAP Messages Routing Reliable Messaging Security Transactions Are We Done Yet? Today Tomorrow Service Service Legacy Systems Partner Systems Enterprise Data Verticals and Infrastructure 2003 MBA Technology Conference

18. What Is GXA? • Global XML Web Services Architecture (GXA) is a set of design principles we (Microsoft) use to architect the next generation of Web Services • Synonymous with “Web Services Architecture” • Designed for interoperability and broad adoption • Adds infrastructure-level capabilities to traditional Web services • Built with existing standards XML, SOAP, XML Schema, and WSDL • GXA is a set of specifications • Specifically not a product 2003 MBA Technology Conference

19. Federation Privacy Reliable Messaging Transactions Extended Foundation Secure, Reliable, Transacted Description Attachments Routing Security WSDL and UDDI (Web Services Description and Directory) Foundation SOAP (Logical Messaging Model) XML, Encoding, and Transports Microsoft’s Web Services ArchitectureExtending the Foundation 2003 MBA Technology Conference

20. Industry initiative for Web services • More than 100 companies signed up so far • Interoperability across platforms, applications and languages • Evidence of industry alignment around Web services www.ws-i.org 2003 MBA Technology Conference

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22. Mortgage Process Purchase Apply Process Close Post Close Real Estate Purchase Agreement Pre-qualify AUS Credit Mortgage Insurance Flood Title eSignature eVault Investor Delivery Recordation Servicing Set-up 2003 MBA Technology Conference

23. MISMO XML Standards • Foundation (XML) • Logical Data Dictionary (LDD) • Tag Names and Definitions • Framework • e-Mortgage Specification 1.0 • Transaction Sets 2003 MBA Technology Conference

24. Automated Underwriting Credit Title Flood Mortgage Insurance Mortgage Application Mortgage Closing Servicing Transfer MISMO Transaction Sets 2003 MBA Technology Conference

25. Dorado and VMP Mortgage Solutions 2003 MBA Technology Conference

26. Mortgage PhD • Vision Become the premier web-based exchange that facilitates data and service transactions between lenders and their service providers. 2003 MBA Technology Conference

27. Development Perspective: • Integrate 1000’s of providers and products • Expose a consistent marketplace • Automate and propagate data to new levels • …and make it snappy! 2003 MBA Technology Conference

28. Integrate Providers • e-handshakes (protocol and parsing) • Order lifecycle (event management) • Framework (consistent/repeatable/fast) 2003 MBA Technology Conference

29. Expose the Marketplace • Shopping cart approach • A single, aggregated request for all cart items • Exposing control of the order lifecycle 2003 MBA Technology Conference

30. Automate and Propagate • Facilitate – take instructions for where and how • Translate – rendering framework / data standardization • Propagate – downstream processing (enabling further integration) 2003 MBA Technology Conference

31. How Web Services Help: • Flexible • Consistent protocol • Standards based messages • Requires less technical infrastructure • Promotes near real time processing 2003 MBA Technology Conference

32. Web Services Trip Wires: • Wading through the hype • UDDI – in a B2B space? • Security • Tools relinquish control • Still “real work” to do 2003 MBA Technology Conference

33. How Standards Help: • Data naming consistency • Organizes XML • Represents common transactions 2003 MBA Technology Conference

34. Chasing Standards: • The data doesn’t always map • Need more detailed data dictionary • Lost in the DTD? • This XML isn’t “My Style” • Version controls • Who’s setting the standards? 2003 MBA Technology Conference

35. Web Service Best Practices: • Use WS standards that fit the need • Construct an object model with XML in mind • Ensure underlying web services modules are trusted and proven (parsers, SOAP implementations, HTTP communication) • Test interoperability 2003 MBA Technology Conference

36. Conclusion • Providers using web services enter the marketplace easier and faster • Disparate platforms are “almost” invisible to the implementation • MISMO proved to be a helpful guide for the request, much more for the response • Next year we’ll look back and laugh…! 2003 MBA Technology Conference

37. Wrap Up – What have we learned • Web Services are standards-based building blocks for cheaply integrating your systems and partners • Web services are easy and are quick to implement • MISMO provides a common language for talking with one another in the Lending Industry – making implementation of Web Services even easier • Many are using web services, many more will

38. Panel Discussion • A discussion with: • James Owens, RDA Corporation - Moderator • Wim Geurden, Microsoft • Roger Gudobba, VMP Mortgage Solutions • Lee Wright, ALLTEL • Questions from the Audience