American Finance and Investment (AFI), a subsidiary of Virginia First Savings Bank (Petersburg, VA; $640 million), plans to begin offering real-time mortgage approval via the Internet on March 31. AFI was one of the first lenders to offer mortgage loans on the Internet. Brightware Inc. helped develop the software. The program is called the CyberSmart Instant Mortgage System. AFI is the exclusive sponsor of FinanCenter at <www.financenter.com> and maintains its own Web site at <www.loanshop.com>.

AFI expects 70-80% of applicants will have their loan approved within five minutes. The remainder will have to submit additional information. The system interfaces with Fannie Mae’s Desktop Underwriter system. AFI will also deploy a real-time customer service function called Cyberactive Customer Service that allows applicants to get questions answered immediately by chatting online with an AFI e-rep. AFI is hoping to license its technology to other lenders such as Security First Network Bank.

Contacts: Roger Conley is VP Technology Marketing at Fannie Mae, <www.fanniemae.com>. Chuck Williams is CEO at Brightware in Novato, CA, 415.884.4744, <www.brightware.com>. Jack Rodgers is President of AFI, 800.562.5674 ext. 121, Jack@loanshop.com.

Bank of Montreal’s (Montreal; $100 billion USD) stellar mortgage site was reviewed last month. Just as we were going to press then, the bank implemented real-time mortgage approval on its Web. Quite a surprise, given only two financial institutions in North America have any kind of real-time Web-based loan programs, and those are on smaller-sized term loans.

Mortgage loan approval is promised “within seconds” of submitting a completed application. The program was co-developed by American Management Systems (AMS) and mbanx, Bank of Montreal’s virtual banking unit, which recently announced plans to hire 300 employees.

Less than a month later, real-time approval was expanded to credit cards at <www.bmo.com/mastercard>. Another industry first as far as we can tell. AMS was again involved in development along with the bank’s Electronic Banking Group, and Toronto-based Medius Communications. Users receive credit decisions within 30 seconds, less time than it takes to download the graphics on most Web pages. AMS <www.amsinc.com> is an $800 million IT consulting firm based in Fairfax, VA with offices in 48 North American and European cities.

Contacts: Drew White is COO at mbanx. Charles O. Rossotti is Chairman of AMS, 703.267.7000. Tom Alton is President of Bank of Montreal Mortgage Corporation, 416.927.5442.