Stewart Mortgage Information Forms Stewart Default Solutions Inc.

June 8, 2004

HOUSTON, June 8 /PRNewswire-FirstCall/ -- Stewart Mortgage Information (SMI) has formed Stewart Default Solutions Inc. (SDS) to offer a full array of default managements and technology solutions supporting the mortgage and consumer services industry.

C. Alan Paylor, who recently joined SMI, will serve as executive vice president and chief operating officer of the new company.

"Stewart Mortgage Information is a 10-year veteran providing outsource solutions for mortgage lenders from origination through post-closing to servicing," said Don O'Neill, chief executive officer, Stewart Mortgage Information. "We are expanding our product lines into default servicing with an emphasis on improving workflow and delivery."

The most recent national Delinquency Survey released by the Mortgage Bankers Association in March, showed that 1.29 percent of one-to-four-unit residential properties at the end of fourth quarter 2003 were in foreclosure. That number is five basis points higher than the third quarter rate of 1.24 percent. Industry experts, as well as consumer publications such as CNN/Money, have reported the number of foreclosed homes has grown in many parts of the country in recent years because of unemployment and less stringent mortgage lending practices.

"We are excited about bringing a third option to this market space," said Paylor. "Our initial focus will be on changing the workflow process in our default management and solution offerings. That change -- coupled with the new technology we will introduce -- will improve not only our productivity, but also that of the clients, investors and attorneys handling the loans in default.

"We will expand those businesses that are default-related in both the mortgage and consumer market space," added Paylor. "This will add a countercyclical mix to Stewart's array of products and services."

Source: Stewart Mortgage Information

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