1. From Paper To E-Payments: The Story of Wells Fargo Home Mortgage Nathan Stephenson Terri Godlevsky

2. Agenda Wells Fargo – Who are they? The Home Mortgage Industry What is the ACH Network? From Paper to E-Payments Competitors Conclusions / Recommendations

3. A Look at Wells Fargo Diverse financial service company  Banking, insurance, investments, mortgage Home Mortgage Division = 20% of business #1 Home Mortgage Lender

4. A Look at Wells Fargo (Continued) Vision:  Satisfy customers’ financial needs  Help customers’ succeed financially  #1 Financial Service Provider in each market Cross Selling

5. Home Mortgage Industry Late 70’s and early 80’s 1990’s 1993 2001, 2002 Trends  Customer Protection  Cashless Society  Physical Cash = 8%

6. What is the Automated Clearing House (ACH) Network? Description Five Participants  Originator  Originating Depository Financial Institution (ODFI)  Automated Clearing House Operator  Receiving Depository Financial Institution (RDFI)  Receiver

7. The ACH Network

8. From Paper to E-Payments The Ratio of Paper Payments to E-Payments  In 2000, the ratio was 4 to 1.  In 2002, the ratio improved to 1.9 to 1.

9. From Paper to E-Payments (Continued) E-Payment Methods  Automatic Mortgage Payment  Online Payments  Just-in-Time Payment  Electronic Bill Presentment and Payment  Equity Enhancement Program  Accounts Receivable Conversion

10. Competitors Top 4 Competitors  Countrywide Financial Corporation  JPMorgan Chase  Washington Mutual, Inc.  Bank of America Corporation

11. Strengths A Top 10 Mortgage Website Well Recognized Name 150 Year History Size Online Mortgage Application

12. Weaknesses Interest Rate Volatility Possible Fraud Security Risks Reluctance to Accept E-Payments

13. Opportunities & Threats Interest Rates Perpetual Evolution of Technology Terrorist Attack

14. Conclusions E-Payment is Beneficial for Everyone Reduced Costs More Convenient Multiple E-Payment Options

15. Recommendations Quality Customer Service To continue further development of the customer convenient online features of their website.