Financial Institutions Suffer from False Sense of Security
Regarding Risk Management in Lending

Cypress Software Systems Commentary Explores Risk Management Best Practices

NORTH RICHLAND HILLS, Texas – Aug. 3, 2010 – Many financial institutions have a false sense of security regarding lending risk management, and the consequences can be very serious.

In a new commentary titled “Risk Management Tips for 2010,” Steven E. Croft, senior vice president at Cypress explores the current lending landscape and outlines potential solutions to important industry issues. The full article can be accessed on Cypress' industry blog at http://info.go-cypress.com.

Some institutions still rely on manual loan application and underwriting processes that are too slow, judgmental and underperforming to remain effective in today’s financial and regulatory environment.

Tools and best practices exist today that allow for more consistent underwriting and lending decisions based on objective financial data, while still promoting strong, personal customer relationships.

Those tools and practices are becoming even more important in the current, ever-changing lending industry. After the latest credit debacle, loan applicants and government entities alike are exerting pressure in the form of regulations that are forcing institutions to change their lending approach.

This time of industry reformation has caught many otherwise sound and stable institutions off guard. They’re now scrambling for solutions, because the thought they were prepared, yet realized there were some holes in their risk management approach.

Some risk management trends and tips that financial institutions can consider to enhance their lending operations, include:

• Become Proactive
• Refine Lending Processes
• Introduce Objectivity
• Automate for Efficiency
• Validate Underwriting
• Enhance Reporting

About Cypress Software Systems

Headquartered in North Richland Hills, Texas, USA, Cypress Software Systems LP is a leading developer of automated credit application decision support technology. Cypress provides community and regional banks, finance companies and credit unions with loan application decision and tracking tools equivalent to those used by the largest national lending institutions. Clients, nationwide and in 16 countries, use the company’s flagship products, Mark IV and BizMark, to quickly and consistently process consumer and small commercial loan applications. Cypress Mark IV offers a flexible, risk-based processing approach that includes tracking consumer loan applications from point of entry to point of decision. Cypress’ BizMark loan automation software processes commercial loan requests within a customer relationship management environment. Both products may be licensed in the bundled Cypress Suite and are offered in either an application service provider (ASP) or traditional business model. The company’s product line also includes AppMark, an ASP-only consumer lending solution for community banks with assets of $250 million or less.

Web site:
www.go-cypress.com

Industry Blog:
"Sixty Seconds With Cypress"

Media Contact:
Jeff Green
Michael A. Burns & Associates Inc.
(214) 521-8596
greenj@mbapr.com