U.S. patent application number 13/008572 was filed with the patent office on 2011-05-12 for system for analyzing loan data.
Invention is credited to Jeffrey M. Lazerson.
Application Number | 20110112960 13/008572 |
Document ID | / |
Family ID | 46280943 |
Filed Date | 2011-05-12 |
United States Patent
Application |
20110112960 |
Kind Code |
A1 |
Lazerson; Jeffrey M. |
May 12, 2011 |
SYSTEM FOR ANALYZING LOAN DATA
Abstract
A system and method are disclosed for a borrower to obtain
and/or evaluate desired financial services. Personal information
from the borrower is obtained and recorded. A credit grading for
the borrower is determined based on the personal information, and
based on pre-established and objective criteria used by at least
one established financial institution that provides financing of
the type sought by the borrower. The credit grading is determined
by an independent entity (or its computer system) that will not
provide the financing to the borrower. The financing may be a loan,
such as a mortgage loan or an auto loan or the financing may be the
issuance of a credit card or a line of credit. The independent
entity may also compile a comparison of closing costs associated
with the financial transactions.
Inventors: |
Lazerson; Jeffrey M.;
(Laguna Niguel, CA) |
Family ID: |
46280943 |
Appl. No.: |
13/008572 |
Filed: |
January 18, 2011 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12052936 |
Mar 21, 2008 |
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13008572 |
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10207344 |
Jul 29, 2002 |
7366694 |
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12052936 |
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10139418 |
May 6, 2002 |
7680728 |
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10207344 |
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60312919 |
Aug 16, 2001 |
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60327026 |
Oct 3, 2001 |
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60362314 |
Mar 5, 2002 |
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Current U.S.
Class: |
705/38 |
Current CPC
Class: |
G06Q 40/025 20130101;
G06Q 40/08 20130101; G06Q 30/02 20130101 |
Class at
Publication: |
705/38 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A computer-implemented method of assisting borrowers in shopping
for loans and associated closing services, the method comprising:
receiving financial data of a borrower via a computer network;
identifying a plurality of mortgage loans for which the borrower
qualifies based at least partly on said financial data, said
plurality of mortgage loans including loans offered by at least one
lender; identifying, in connection with the plurality of mortgage
loans, closing services and associated closing costs, said closing
services offered by service providers other than the at least one
lender; and outputting, for presentation to the borrower via a user
interface of a web site, information regarding the set of mortgage
loans and the closing services, said information including, for
each of the plurality of loans, a total cost of each loan,
including said associated closing costs for closing services; said
method performed by a computer-based system.
2. The method of claim 1, wherein identifying the plurality of
mortgage loans for which the borrower qualifies comprises applying
evaluation criteria of the at least one lender to financial data of
the borrower.
3. The method of claim 2, wherein the computer-based system is
operated by an entity that serves as an intermediary between the
borrower and the at least one lender.
4. The method of claim 1, further comprising, via the user
interface of the web site, providing an option for the borrower to
select a mortgage loan, and to authorize a release of personal
information of the borrower to a lender corresponding to the
selected loan.
5. The method of claim 1, wherein the method comprises providing
guaranteed closing costs for said closing services to the borrower
via said web site.
6. The method of claim 1, wherein the closing services include
services provided by a closing agent, a title company, and a home
inspector.
7. The method of claim 1, further comprising, via said user
interface of the web site, providing functionality for the borrower
to select particular service providers for providing the closing
services.
8. The method of claim 1, wherein the method is performed while the
borrower remains anonymous to each of the one or more lenders
associated with the plurality of mortgage loans.
9. The method of claim 1, further comprising pre-qualifying the
borrower for at least one of the mortgage loans while the borrower
remains anonymous to the corresponding lender.
10. The method of claim 1, further comprising, by said computer
system, using an automated valuation model (AVM) to assess a value
of a real estate property associated with the mortgage loans.
11. A system for shopping for a loan and associated closing
services, the system comprising: a computer system that hosts a web
site that is accessible to borrowers, said computer system
configured to implement a process that comprises: receiving
financial data of a borrower via a computer network; identifying a
plurality of mortgage loans for which the borrower qualifies based
at least partly on said financial data, said plurality of mortgage
loans including loans offered by at least one lender; identifying,
in connection with the plurality of mortgage loans, closing
services and associated closing costs, said closing services
offered by service providers other than the at least one lender;
and outputting, for presentation to the borrower via a user
interface of the web site, information regarding the set of
mortgage loans and the closing services, said information
including, for each of the plurality of loans, a total cost of each
loan, including said associated closing costs for closing
services.
12. The system of claim 11, wherein the computer system is
configured to identify the plurality of mortgage loans for which
the borrower qualifies by applying evaluation criteria of the at
least one lender to financial data of the borrower.
13. The system of claim 12, wherein the computer system is operated
by an entity that serves as an intermediary between the borrower
and the at least one lender.
14. The system of claim 11, wherein the computer system is
configured to provide an option for the borrower to select a
mortgage loan, and to authorize a release of personal information
of the borrower to a lender corresponding to the selected loan.
15. The system of claim 11, wherein the computer system is
configured to provide guaranteed closing costs for said closing
services to the borrower.
16. The system of claim 11, wherein the closing services include
services provided by at least a closing agent, a title company, and
a home inspector.
17. The system of claim 11, wherein the computer system is
configured to provide functionality for the borrower to select
particular service providers for providing the closing
services.
18. The system of claim 11, wherein the computer system is
configured to perform said process while the borrower remains
anonymous to each of the one or more lenders associated with the
plurality of mortgage loans.
19. The system of claim 11, wherein the computer system is
configured to pre-qualify the borrower for at least one of the
mortgage loans while the borrower remains anonymous to the
corresponding lender.
20. The system of claim 11, wherein the computer system is
configured to use an automated valuation model (AVM) to assess a
value of a real estate property associated with the mortgage loans.
Description
RELATED APPLICATIONS
[0001] This application is a continuation of U.S. application Ser.
No. 12/052,936, filed Mar. 21, 2008, which is a continuation of
U.S. application Ser. No. 10/207,344, filed Jul. 29, 2002 (now U.S.
Pat. No. 7,366,694), which is a continuation-in-part of U.S. patent
application Ser. No. 10/139,418, filed May 6, 2002 (now U.S. Pat.
No. 7,680,728), which claims the benefit of the following
provisional applications: Appl. No. 60/312,919, filed Aug. 16,
2001; Appl. No. 60/327,026, filed Oct. 3, 2001, and Appl. No.
60/362,314, filed Mar. 5, 2002. The entire disclosures of the
aforesaid applications are hereby incorporated by reference.
BACKGROUND OF THE INVENTION
[0002] The present invention relates generally to financial
transactions including a method for a borrower to evaluate and/or
obtain financing, e.g., a loan or a credit card.
[0003] Shopping for financing (e.g., a loan, such as a mortgage)
can be a complicated time-consuming process. The mortgage industry
has been slow to empower borrowers in order to save them time, make
their lives easier, and help them determine their best loan
options. Because of this, borrowers, and in particular,
credit-impaired borrowers, are often overcharged. The Coalition of
Responsible Lending has stated that ten million borrowers have been
overcharged up-front fees of over $9,000,000,000, which equates to
ten million borrowers being overcharged an average of over $900
each. The practice of offering borrowers loans at rates that are
higher than warranted by the credit history of the borrower is
sometimes referred to as predatory lending. Predatory lending is a
very difficult and challenging problem to recognize in practice as
many lenders may use procedures that conceal the nature of the
predatory practices.
[0004] There are newspaper or Internet referral sites which publish
interest rates for one or more lenders. However, the user must
interact individually with each prospective lender. It is very time
consuming for a borrower to investigate each of the potential
lenders. Furthermore, each prospective lender typically runs a
credit report on the borrower, causing there to be multiple
inquiries on the borrower's credit report. The basis for an adverse
decision is often unknown.
[0005] There is thus a need for a way to help a borrower to avoid
predatory lending and paying higher than justified loan rates.
SUMMARY
[0006] One aspect of the present invention may be regarded as a
system and method for reducing predatory lending when a borrower
seeks financing. Personal information is obtained and recorded
regarding the reasons that the borrower wants to obtain the
financing. Loan evaluation information is obtained and recorded.
The loan evaluation information is preferably based on, or the same
as, the criteria used by at least one established financial
institution that may provide financing to the borrower. A credit
grading is determined for the borrower based on pre-established and
objective criteria, the personal information and the loan
evaluation information. The credit grading is performed by an
entity that is not loaning money to the borrower.
[0007] The financing sought by the borrower may be a loan. The loan
may be, for example, a mortgage loan, a personal loan, an auto
loan, or a student loan. The financing sought by the buyer may also
be a credit card.
[0008] The credit grading information may be provided to the
borrower so the borrower can use the information to evaluate his
financing options, e.g., different loans.
[0009] The credit grading information may be provided to at least
one financial institution. The financial institution evaluates
providing financing to the borrower based on the credit grading
information. The credit grading information may be provided to a
plurality of financial institutions or to others authorized by the
borrower. The information provided by the borrower is preferably,
but optionally, handled in a confidential manner and not disclosed
to others. The credit score or grade is also preferably handled in
a confidential manner and is not disclosed unless authorized by the
borrower.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] These, as well as other features of the present invention,
will become apparent upon reference to the drawings, wherein:
[0011] FIG. 1 is a flow diagram illustrating an exemplary method
for a user to obtain financing in accordance with the present
invention;
[0012] FIGS. 2A-2B shows a block diagram illustrating further
detail of various aspects of the method illustrated in FIG. 1;
[0013] FIG. 3 is a flow diagram illustrating an exemplary method
for a user to obtain financing in accordance with the present
invention; and
[0014] FIG. 4 is a block diagram illustrating a computer and
database arrangement to implement the features described
herein.
DETAILED DESCRIPTION OF SPECIFIC EMBODIMENTS
[0015] An improved way for borrowers to shop for financing (e.g.,
loans, such as mortgage or auto loans or credit cards) is provided.
A person or a group of people (borrower(s)) are interested in
receiving financing, such as a mortgage for a home. The mortgage
could be a purchase, refinance or cash-out refinance home loan. It
could be first, second or third mortgage lien. For purposes of
illustration herein, a mortgage will be used in illustrating and
describing the present invention. However, it will be appreciated
that the loan can be another type of loan, such as an auto loan, a
personal loan, a student loan, etc. or that the financing may not
be a loan at all, but may be directed to obtaining a credit card or
arranging other types of financial credit, for example, a line of
credit.
[0016] A series of questions are asked of the borrower in order to
correlate the most appropriate financing with the borrower's
desires. Credit and financial information is also acquired from the
borrower. That information is compared with financing qualification
criteria and/or credit qualifying criteria in order to provide a
borrower with an impartial credit evaluation or loan evaluation
based on the submitted information. That credit evaluation or loan
evaluation can be used as a check against commercial lenders
offering loans to the borrower to allow the borrower to compare
against the loan rate or credit rating offered to the borrower by
lenders in order to ensure the borrower receives the most desirable
loan based on the credit available to that borrower.
[0017] Referring now to the drawings wherein the showings are for
purposes of illustrating preferred embodiments of the present
invention only, and not for purposes of limiting the same, FIG. 1
is a flow diagram illustrating an exemplary method for obtaining a
mortgage. FIGS. 2A-2B are a block diagram illustrating in further
detail various aspect of the method illustrated in FIG. 1.
[0018] The logic of FIG. 1 moves from a start block to block 100
where the user is asked a series of questions, either verbally, or
visually, for example, in a written format. In exemplary
embodiments, this process is performed over the Internet by viewing
questions on a computer display and sending responsive information.
The responsive information may be sent over the Internet, e.g., by
filling out and submitting the information in an online form, via
attached documents, via scanned documents, etc. It will be
appreciated that the user could also answer the question in person,
over the phone, via facsimile, via postal mail, etc. In more
detail, as shown in block 200 of FIG. 2A, the borrower(s) answer a
series of configurative questions. These questions relate to goals,
needs, wants, etc. of the borrower. The precise questions will vary
but are directed toward achieving one or more specific purposes.
These questions are optional, but are preferred. The purpose of
these questions is twofold. First, the questions allow the
potential borrower(s) to focus on exactly what the borrower(s)
is/are trying to accomplish. For example, the primary interest
might be to obtain funds to purchase real or personal property, to
improve monthly cash flow, to reduce payment, to obtain a different
type of loan, to alter the monthly loan amount or other terms of
the loan, or to refinance and obtain various amounts of cash.
Second, the questions make clear to the loan processor and/or
eventual lender exactly what the borrower(s) objectives are in
seeking the financing so the most appropriate types of loans and
terms can be offered to the borrower(s).
[0019] Prior to finalizing a loan amount, various items, especially
some or all of the items typically involved in calculating closing
costs, can be verified with the borrower(s) to be certain that the
loan being put in place is the loan most suitable to what the
borrower(s) wants. As with the prior questions, these questions can
be answered over the phone, on-line, through the mail, by fax, in
person, etc. Illustrative closing cost items include but are not
limited to, one or more of points and fees being charged, type of
loan product (conventional loans, jumbo loans, conforming loans,
F.H.A., V.A., etc.), lien position, purpose of loan, etc. A more
complete illustration is provided regarding the alternative
embodiment of FIGS. 3-4.
[0020] The logic of FIG. 1 proceeds to block 102 where financial
evaluation information is obtained and recorded from at least one
financial institution from which the borrower may obtain the loan,
financing, credit, etc.
[0021] In addition to providing the information from the
configurative questions, the borrower(s) provide information
sufficient to apply for a loan. This may alternatively comprise
actually applying for a loan or financing independently and
separately from any person or entity that is a mortgage credit
grantor or mortgage arranger (block 202). This application can be
done over the phone, on-line or with a live customer service
representative assisting the telephone applicant(s). It can also be
done through the mail, in person, by fax, or through a global
communications system, such as the Internet.
[0022] The loan application can also be done with the assistance of
a loan processing service that helps answer questions of the
borrower, acquire information, and generally assist the borrower in
the application process (block 206). There may or may not be a fee
charged for this application portion of the service. Loan
processors can help explain to potential lenders various aspects of
the borrower's credit history that may appear undesirable. They may
help consolidate prior loans, to remove or explain adverse credit
ratings, or claims, and make the borrower's credit appear more
desirable. Some of these aspects involve credit correction which is
discussed in further detail later. While the assistance of a third
party can be used in the loan application process, the borrower(s)
may attempt to apply on his own. The information from this loan
application is provided to the same entity having the responses to
the configurative questions.
[0023] Often, the borrower(s) may be aware of something that needs
to be corrected or questioned regarding the credit report of the
individual borrower or borrower. The borrower(s) may be aware of
this before or become aware of this during the mortgage application
process. The borrower could go directly to a credit correction
company or be referred by the loan processor to a credit correction
company (block 208). There may or may not be a fee charged for this
service. The information given to any credit correction company is
preferably, but optionally, provided to the same entity that has
the responses to the configurative questions.
[0024] The purpose of the credit correction is to resolve anything
having an adverse effect on the consumer's credit and that is
typically achieved by removing incorrect information, closing
accounts that the borrower sees no useful purpose in keeping open,
negotiating settlements of amounts owed to creditors as well as
negotiating the reduction or removal of negative items on the
credit report. The credit correction could also coordinate among
creditors and the three major credit bureaus (Experian, Transunion
and Equifax) to correctly portray outstanding balances, public
records items, tax liens, judgments, collections, charge-offs and,
in conjunction with Fair Isaac's Company (FICO), all to improve the
credit scores of the borrower. Any results of the credit correction
are preferably, but optionally, provided to the same entity that
has the responses to the configurative questions, especially if the
results alter the credit worthiness of the borrower.
[0025] The logic then moves to block 104 where a credit grade or
score is determined. In conjunction with the previously answered
configurative questions, the borrower's mortgage or other financial
application will be evaluated based upon objective, pre-set
underwriting criteria. One or more, and preferably all, of the
credit history, credit score(s), equity, down payment, income,
assets, job history and stability could be considered. The criteria
need not be inclusive of all lender's criteria. The mortgage credit
evaluation system is preferably based upon commonly used industry
evaluation systems, including one or more of Fannie Mae, Freddie
Mac, F.H.A., V.A., Ginnie Mae, private mortgage insurance
companies, or combinations of those evaluation systems. It could
also be based upon individual lenders' evaluation systems if those
are different from the above-mentioned systems. For example,
Washington Mutual Bank has significant market share in the United
States. The institution may have its own evaluation process,
possibly not commonly used within the industry. The results of the
evaluation are based on objective, pre-set underwriting criteria
provided to the borrower. In exemplary embodiments of the
invention, the borrower is provided with his or her credit report
and credit grades or scores. The borrower could also be provided
with an electronic appraisal of the property. This information
could be provided to the borrower via the Internet or via another
method, such as via facsimile or mail.
[0026] For other types of financing, other financial criteria will
apply. For example, a bank's criteria for a credit card, for a line
of credit. The criteria is preferably that criteria used by a
recognized institution providing the financing desired by the
borrower, and the criteria will vary with the institution and the
type of criteria involved.
[0027] The purpose of would-be borrower(s) knowing independently of
any interested mortgage credit grantor or arranger is for the
borrower(s) to independently know their borrowing strength and
ability. If the borrower(s) know that they have an excellent grade
in the mortgage credit granting system, they are armed with
valuable information that can help them to negotiate the most
favorable terms, e.g., interest rates. See block 212 of FIG. 2A.
This may also allow the borrower(s) to receive a better loan suited
to their particular needs, preferably, but optionally, as indicated
by the borrower's responses to the personal configurative
questions. This may not necessarily mean the most favorable
interest rate. For example, while a borrower may be able to get 90%
cash-out, it may be more valuable to the borrower to get only 80%
cash-out. The 90% cash-out will probably carry a less favorable
interest rate or more points, or both.
[0028] The would-be borrower preferably receives a credit
pre-approval from the entity having the responses to the
configurative questions and the other above identified information.
Alternatively, the would-be borrower receives a full loan approval
from the entity having the responses to the configurative questions
and the other above identified information. The difference between
these two alternatives is that the pre-approval gives a loan amount
and loan terms that the borrower is currently eligible for. The
actual loan approval means that the borrower(s) have everything in
place; a specific property, specific interest rate and loan amount,
appraisal, title report, escrow/attorney (closing agent),
paperwork, proof of income, assets (if needed), for that particular
loan program, and any other required paperwork that might be needed
to complete the transaction. The borrower(s) is/are issued a loan
number and personal identification (PIN) number.
[0029] The approval or pre-approval will be good (locked) for a
certain number of days. The number of days will vary based on a
variety of circumstances. A loan number is preferably, but
optionally, issued in conjunction with commonly used underwriting
standards, systems, and criteria. For example, FANNIE MAE might
issue a loan number. That loan number could be the loan number
issued for the borrower(s) credit pre-approval or loan approval. A
personal identification number (PIN) can be used for privacy
protection. Preferably, but optionally, the borrower(s), through
their PIN number, control who can look at their file. Thus,
preferably the borrower's credit information can be owned or
controlled by the borrower. No one has access to the borrower's
identity or information without the borrower releasing the
information. Even when submitting credit information and the other
information discussed herein to a lender, the borrower(s) can
submit, at least preliminarily, the information to the lender or
mortgage broker using a PIN number and thus maintain further
confidentiality.
[0030] One purpose of the lender not knowing the exact identity of
the borrower(s), at least initially, is to protect the time
invested by the borrower(s) in responding to sales calls that might
result from releasing the identity of the borrower(s). It also
protects the borrower(s) privacy, the confidentiality of the
information involved, and security of the borrower(s) until the
borrower(s) actually decides and chooses who the lender or mortgage
broker will be to perform the loan origination task. By maintaining
the identity of the borrower(s) in confidence or even in secret
through a PIN number, it is possible to force lenders to at least
initially evaluate potential borrower(s) on objective criteria, and
that can reduce profiling, discrimination, predatory lending,
subjective selection to achieve other undesirable and unlawful
goals that might arise if the borrower(s) identity were known.
[0031] One purpose for the lender or mortgage broker using this
intermediary is to ideally offer the guaranteed interest rate and
closing costs to those borrowers that are loan approval capable.
Lenders/mortgage brokers do not have to guarantee interest rates up
front. This process will assist mortgage originators by not having
to log in and guarantee interest rates to borrowers that cannot
qualify for that lender's/mortgage broker's loan approval
criteria.
[0032] Using this approval or pre-approval information, the
borrower(s) can shop on their own. The borrower(s) can shop
anonymously through a computerized search engine. Or, the
borrower(s) can shop openly with the assistance of a cooperating
agency. See block 214.
[0033] The borrower(s) may be able to access current interest rate
and fee surveys of lender/mortgage companies to compare that
information with what the applicant is being quoted by others. See
block 212. The borrower(s) may also be able to find out how much
the lender/mortgage company is paying for the money being loaned to
the borrower or used to provide other financial services to the
borrower or applicant. This is similar to finding out what a car
dealer pays the manufacturer for the car. Additionally, the
mortgage applicant(s) or borrower(s) can analyze the data in a
comparable format (wrapping the data). This can help to determine
the most beneficial loan or other financial arrangement. This
usually, but not always, means the lowest interest rate, the lowest
credit rate, any balloon payments, etc. that meets the applicant's
personal requirements. But the wrapped data that is presented in a
format to allow comparison, such as a spreadsheet format,
advantageously includes the term (duration) of the mortgage(s),
loan or financial commitment; interest rate, the annual percentage
rate (APR), note rate (which could be different than the start rate
or the interest rate), loan amount, total closing costs, total
summation of category/provider costs (i.e., mortgage broker,
lender, closing agent, title etc.), interest rate; the interest
rate adjustment period(s); future interest rate(s), if known (i.e.,
fixed rate buydowns or graduated payment mortgages), starting
interest rate, lifetime cap or maximum rate, margin, index,
guaranteed interest rate lock period, prepayment penalty term and
dollar amount of penalty, index history, description of index, and
other related information. The wrapped data also preferably, but
optionally, includes the borrower's credit risk scoring or credit
rating as determined by various institutions, including industry
ratings such as FICO (Fair Isaacs & Co.), and private ratings
from lending institutions and/or mortgage insurance companies. As
discussed below, in a further embodiment the independent third
party can present the wrapped data to the borrower(s), with the
wrapped data being provided free, as part of the services of the
third party, or for a fixed or variable fee.
[0034] After receiving the credit report, loan approval or loan
pre-approval, the borrower can go to negotiate a loan on his or her
own behalf with any mortgage originator(s) that may financially
benefit by packaging and/or funding the borrower's loan. See block
214. The borrower authorizes the mortgage originator to pull up the
approval findings using the pre-approval/approval authorization
number. The mortgage originator negotiates a rate and fees for the
borrower to be charged, knowing that the loan is already
pre-approved and in the belief that the information inputted from
the loan application is accurate. The mortgage originator will
likely make any mortgage or financing subject to verification of
information inputted from the loan application. The rate and fees
charged are typically based upon the credit grading of the
approval.
[0035] With authorization from the borrower, the mortgage
originator then collects the information needed from the loan
approval findings. The borrower(s) is/are simply handing over the
package of required items that the pre-approval/approval has
specified. See block 216. The lender formally examines the loan
file. The lender locks in interest rate. Upon satisfactory receipt
of accurate and valid information (quality control), the file is
formally lender approved. The loan documents are drawn. The
borrower(s) sign the loan documents. The loan is funded. See block
218. Other types of financial assistance will have different
processes that vary with the nature of the transactions involved,
such as a credit card, line of credit, etc.
[0036] The information compiled by the entity having the answers to
the configurative questions can also be used for goods or services
related to the purpose for which the borrower is obtaining
financing or for helping the borrower obtain such goods or
services. See block 220. Thus, the borrower(s) may also need other
industry services. Some examples are a closing agent, title
company, real estate agent, home inspector, termite company and
utility hook-up, all of which are related to a home purchase. A
system and method for identifying third party vendors for goods and
services related to real estate transactions is disclosed in U.S.
Pat. No. 6,321,202, the complete contents of which are incorporated
by reference herein. The borrower(s) could find those needed
services through this credit granting system, by having the entity
with the answers to the configurative questions provide the
information to the borrower, or provide the identity of the
borrower to providers of the appropriate goods or services. It will
be appreciated that these related services are dependent upon and
vary with the type of loan or financing being obtained by the
borrower. For example, in the case of an auto loan, related
services might include auto security devices, etc. There may or may
not be a charge for providing contact information for these needed
goods and/or services.
[0037] After the borrower(s) go through the credit granting
process, they may or may not have actually had a loan funded.
Within this mortgage credit granting system, there is opportunity
for providing future reminders or information on the borrowers'
credit report and credit scores, property value, interest rates,
borrowing power, etc. The borrower(s) may wish to access
information about his/their own property(ies), credit, borrowing
power, etc. This could be done by paying or not paying a fee for
unlimited usage, periodically sent to borrower(s) (subscription
service) or on a per transaction basis. See block 224.
[0038] Additionally, the borrower(s) may periodically receive
informational bulletins for the purpose of maintaining a
relationship between the borrower and the entity having the answers
to the configurative questions. See block 226. This could be
communicated by fax, Internet, e-mail, delivered mail or by phone,
or other communication devices now existing or developed in the
future.
[0039] The borrower could also access marketing services by giving
permission to receive advertising, be contacted about a specific
product or service related to home ownership. The borrower could
also initiate communication with a related product or service
(Agency Service) that can be accessed as part of this credit
granting system. There may or may not be a fee charged for this
service whether it is the borrower of vendor.
[0040] This above method is not designed to be used to actually
negotiate mortgages. It could be used to do this, but preferably,
it is designed to give the borrower information about their credit
grading. The credit grading includes a grading based on
combinations of a variety of factors, including various
combinations of a credit report for the borrower, borrower income,
borrower assets, borrower liabilities, property appraisal, title
report, and whatever criteria a particular lender deems
appropriate. If borrowers know that they are acceptable based on
commonly used credit-granting standards/systems/criteria (e.g.,
Fannie Mae, Freddie Mac, F.H.A., V.A., etc.) that typically offer
the lowest rates and fees, it makes them less vulnerable to be
victimized by predatory lenders and/or mortgage originators that
charge unreasonably high rates and fees to a good quality borrower.
Similarly, this process allows an applicant to evaluate an aspect
of their finances based on accepted criteria used in the trade for
the particular financial aspect in question, and enables the
applicant to use the resulting information to the advantage of the
applicant
[0041] Borrower privacy is preferably, but optionally, an important
critical component to this credit granting system. Preferably, no
entity gains access to the borrowers' information without the clear
consent of the borrower. Any entity that receives business through
this system (e.g., loan processor, credit correction company) is
thus preferably contractually obligated to maintain the borrower's
privacy. Likewise, affiliated entities having access to borrower
information are preferably precluded by agreement from releasing
information about that borrower unless the borrower gives
permission to do so. Preferably, the information may only be
released as specifically instructed by the borrower(s).
[0042] There is thus advantageously provided a method by which an
applicant seeking financing can provide information to a third
party evaluator that will render an independent evaluation of the
applicant for the requested financing based on objective criteria
used by at least one established entity that can provide the
financing sought by the applicant. The applicant can then use that
independent evaluation for his/her/its own purposes. Preferably,
the applicant will use the evaluation to obtain the desired
financing, to negotiate more favorable terms on the financing, or
to guard against terms less favorable than are believed to be
otherwise available to a person having the independent
evaluation.
[0043] More preferably, the applicant also provides information
relating to the reasons for seeking the financing. That information
is preferably, but optionally used by the third party evaluator to
select criteria more applicable to the desires of the applicant, or
to direct the applicant to financial institutions more likely to
suit the applicant's needs or the applicant's desires, or to allow
a financial institution to evaluate the applicant's financial
requests, or any combination of these. Further, this information
can be provided to third party providers who can provide goods or
services to the applicant which goods or services are related to
the use to which the applicant intends to put the financing.
[0044] There is thus provided a method by which a third party can
acquire information from an applicant and compare the information
with predetermined criteria and provide an evaluation relating to a
financial matter. The evaluation can be used to avoid predatory
lending, is preferably used to obtain financing in the form of
financial assistance to the applicant, and is more preferably used
to obtain a financial loan, and is still more preferably used to
obtain home mortgage financing. In the mortgage context, the
service will preferably provide persons seeking mortgages with
information about the amount of money they should be able to borrow
based upon current rates. By establishing appropriate arrangements
between the third party evaluator and the person providing the
mortgage or other financial service, a pre-approval could even be
granted by the third party, such as a mortgage pre-approval. Such
pre-approval would be subject to the later agreement by the lender
or provider of other financial services after verification of the
information provided by the borrower or other person seeking
financial services.
[0045] The method described herein is advantageously implemented by
inputting the information from the applicant into a computer, into
an electronic device, or into another device which compares at
least some of the information to predetermined criteria used by an
established entity, be it a person, business or organization, that
provides financial services of the type sought or needed by the
applicant. Preferably, the criteria is stored in memory and the
applicable criteria is selected by the computer automatically or by
a person manually, based in part upon personal information provided
by the applicant as to the reasons for requesting the financial
service. Advantageously, the evaluation also includes specifics on
the financial services desired, such as appropriate fee and
interest rate ranges based on the loan amount and loan program for
a home loan mortgage. A tentative pre-approval can also be provided
by the third party evaluator subject to verification of the
accuracy of the information provided by the person seeking the
financial services.
[0046] Advantageously the criteria for providing the requested
financial service (e.g., mortgage) is obtained from several
providers, preferably the major providers of the desired financial
service (e.g., Freddie Mac, Fannie Mae, FHA, VHA, etc). The
disclosure and use of the financial criteria will typically be
confidential between the third party evaluator and the provider of
the desired services. Moreover, the disclosure of the financial
criteria preferably includes computer software allowing automated
application of the criteria by the third party evaluator. If access
to the actual criteria used by providers of the desired service is
not available, then in appropriate circumstances software or
criteria closely mimicking the desired service provider's criteria
can be used. For example, in the home mortgage area if Freddie Mac
loan criteria is not available, then loan criteria from Countrywide
could be used.
[0047] Advantageously, but optionally, the configuration
information is also provided to the third party evaluator, and that
information is used to help select the financial service providers
most likely to provide the service desired. The computer database
that is preferably, but optionally used to assist in the evaluation
is desirably programmed to narrow the financial sources based on
the requirements of the person seeking the financial services.
[0048] The comparison results in an evaluation that is preferably
printed or provided in other tangible form or in a form visually
perceptible by the applicant, as for example, a visual display on a
computer screen or video monitor. Advantageously, the person
seeking the financial services will be provided with an evaluation
from the major suppliers of the desired financial services. For
example, a credit rating from the three major providers (Experian,
Transunion, Equifax) could be provided.
[0049] The method described herein can advantageously be used
online, with the person seeking financial services filling out his
or her own application and transmitting the information over the
Internet. The third party evaluator will receive the information
and use a computer to search for the requestor's best options based
upon the information provided by the requestor and based upon the
requestor's specific needs or special requests as identified by the
configuration questions. The third party evaluation, in the home
loan context, advantageously provides credit reports and scores,
loan approval findings and an AVM (automated valuation model) if
there is a specific property in question.
[0050] Because the requestor (the person seeking the financial
services) owns all of the personal information provided to the
third party evaluator, and because the information is provided over
secured lines and methods of transmittal, the information is
confidential and preferably will not be released without permission
from the requestor. This differs from many, if not all, of the
current home loan situations in which the lender owns the
application (and thus the information on the application) for a
home loan. Indeed, having the lender own the credit information is
required by law in order to regulate lenders and inhibit fraud
committed by lenders upon borrowers seeking home loans.
[0051] The requestor/borrower can then shop for a loan anonymously
through any of a variety ways. Once the requestor/borrower finds an
acceptable choice, the third party sends the evaluation and some or
all of the financial information obtained from the requestor and
some or all of the configuration information, to the provider
selected by the requestor. This allows the confidential information
to be sent only to the person or persons specifically identified by
the requestor/borrower. This contrasts significantly with current
Internet based loan systems in which financial information is
simultaneously submitted to a plurality of predesignated, potential
lenders in the hope that one of them will offer to make a loan
after internally evaluating the loan request.
[0052] Upon receipt of the third party evaluation, the
requestor/borrower may also decide to wait and attempt to improve
the credit rating or evaluation. Credit problems can be cleared up,
debt can be consolidated, etc. Because the evaluation is
confidential, there is no adverse report to later hinder the
requestor/borrower and there are fewer credit checks showing up on
the requestor's credit. There are disadvantages to having a large
number of credit checks on a person's credit.
[0053] The present method envisions that the person seeking the
financial services will incur a legal obligation to pay, and will
actually pay the third party for rendering an independent
evaluation based on objective criteria. The payment by the person
seeking the service is different than reimbursing appraisal fees or
the costs of credit reports, and constitutes payment for services
rendered. The payment is preferably an out-of-pocket payment by
cash, check, money order, credit card etc.
[0054] But the payment can in some circumstances be made by the
person providing the financial services. An example would be when
the third party provides the person seeking the desired financial
services with the identification of one or more providers of the
desired financial services and the person desiring the financial
services actually obtains the services from the provider. In that
case, a preexisting arrangement may exist under which the person
providing the financial services pays for the evaluation by the
third party, gives a financial credit to the person seeking the
service, or provides a separate payment to the third party.
Moreover, the person providing the financial services may pay the
third party evaluator for referring the person seeking the
financial services. Because the third party is preferably
independent, these payments from the providers are transfers
between separate legal entities that have no ownership affiliation,
and they must comply with regulatory disclosure requirements.
Despite the existence of such financial reimbursements for
providing leads to lenders or to other service providers, the third
party evaluators are still considered independent. If the third
party evaluator is a full time employee of an entity providing the
desired financial services or if the third party evaluator receives
a percentage commission from an affiliated company based on the
loans funded through this program, then the third party would most
likely not be considered independent. Either an independent third
party, or an affiliated/interested third party could be used, but
the affiliated/interested third party is less desirable.
[0055] The above description is given in the context of an
individual obtaining financial services, using a home loan as an
example. The method provided herein is equally applicable to any
person, when person is understood to mean any human, as well as any
legal entity such as a corporation, partnership, limited liability
company, etc.
[0056] A further embodiment of this invention is illustrated in
FIG. 3. Blocks with the same numbers as blocks in FIGS. 2A and 2B
(e.g. block numbers less than 300) are the same as described
regarding FIGS. 2A and 2B, above unless noted otherwise, so their
descriptions are not repeated. Block 300 performs the same
functions as former block 210 and everything previously described
relative to block 210 applies to block 300. But block 300 also
includes the data acquisition step of block 302. As reflected by
block 302, additional information is acquired, preferably, but not
necessarily by an independent agency. The acquired information
preferably involves wrapped data on the loan term, rate and any
conditions, as well as wrapped data on closing costs. The wrapped
data of block 302 is advantageously provided by the same party that
performs the functions of block 300, but two separate parties could
be used for the functions of each block.
[0057] The wrapped data is advantageously, but optionally,
presented in a format to allow comparison, such as a spreadsheet
format. The wrapped data on the loan term, rate and conditions
advantageously includes the term (duration) of the mortgage(s),
loan or financial commitment; the interest rate; the interest rate
adjustment period(s); future interest rate(s) if known (i.e., fixed
rate buydowns or graduated payment mortgages), starting interest
rate, lifetime cap or maximum rate, margin, index, guaranteed
interest rate lock period, prepayment penalty term and dollar
amount of penalty, index history, description of index, and other
related information. Advantageously, some or all of these loan
aspects, especially the rate and lifecap, are guaranteed unless an
observable and verifiable index or other appropriate data or means
s a change in interest rates.
[0058] The wrapped data on the closing costs will vary with the
nature of the financial transaction involved, but for a home loan
include such information associated with title, and these fees
include Title Insurance, title insurance endorsements, title
insurance premiums/fees, title surveys, messenger fees and
reconveyance fees, title insurance fees. There are also a number of
charges associated with the closing agents, and these include, but
are not limited to, closing agent escrow officer fees, attorney
fees, title company closing agent/officer charges, notary fees,
recording fees, messenger fees, payoff demand fee(s), facsimile
fees, prepaid interest for a certain number of days in the month of
the closing.
[0059] There are additional charges associated with loan
origination fees, and these include, but are not limited to loan
origination fees or loan points, discount points, mortgage broker
points/fees, processing fees, credit report charges, credit report
updating charges, credit report correction fees and costs,
underwriting fees, loan document fees, tax services, wire transfer
charges, flood zone certification costs, recording fees, automated
computer appraisal charges, human on-site appraisal fees, drive-by
appraisals, automated computer appraisals, property hazard/fire
insurance costs for a specified amount of time, mortgage insurance
for a specified time period and/or until the mortgage is paid down
to a certain loan to value or until there is a certain amount of
increased property value through appreciation or through a
combination of both, bi-weekly or other note modification set-up
fees, interest rate note modification, term of note modification,
relocking at the same or different interest rate or renewal of rate
lock guarantee under a different loan than the original guaranteed
loan program, home warranty policy fees, termite inspection fee and
termite report charges, roof inspection fees, geological inspection
report fee, mold, contamination, natural hazards inspection fee and
report charges, mortgage life insurance, disability insurance,
mortgage unemployment insurance costs.
[0060] There are additional fees associated with real estate
agencies, and these include but are not limited to real estate
agent commissions, administrative fees for home buyers, home
sellers or both. Selling costs may include all tile insurance and
closing agent related fees. Mortgage broker. Further, there may be
fees associated with mortgage brokers, and these fees include but
are not limited to fees associated with a borrower agreement for
mortgage broker to receive a specified amount of the lender rebate,
and any yield spread premium or service release premium in lieu of
or in addition to the mortgage broker directly charges points or
fees to the borrower for arranging the loan. Finally, there may be
extraneous, but nonetheless appropriate charges, such as fees
associated with the independent third party's efforts, charges for
the configuration questions, charges for transmitting, verifying,
and guaranteeing some level of accuracy of the information and
costs quoted by the third party. As always seems to be the case,
there are probably some unexpected fees.
[0061] To the extent some of the above are referred to as fees or
charges when they should be costs, or vice versa, they all
represent money charged to and paid by the borrower(s) and may
generally be referred to as fees, or costs or charges. The wrapped
information is preferably presented in the above groupings, but
various combinations of itemizations can be used, depending on the
financial transaction involved and fees associated therewith.
Moreover, there may be conditions associated with some or all of
the above fees, and advantageously, but optionally, those
conditions are also are enumerated for comparison. Further, it is
desirable, but optional, to include a total sum of the associated
costs for a bottom-line comparison.
[0062] This wrapped data is preferably compiled based on
information from one or more agencies providing the services. These
fees from the various providers may be based on standard fees, or
the independent third party may reach agreements with one or more
providers for a fee reduction for any of a variety of reasons,
including volume discounts.
[0063] Advantageously, but optionally, the various above itemized
costs associated with the wrapped information, or at least the
total cost, is guaranteed or locked-in to be the fee maximum
charged for a fixed period of time, such as 30 days, but the time
can vary. Preferably from the third party's viewpoint, the costs of
some or all of the wrapped data are guaranteed but within a
predetermined variance rate, such as 5%, preferably 10%, and more
preferably 15%. That permissible variance may apply to some or all
of the wrapped data, but is more likely to apply to only some
specific items, such as for example, per diem interest, hazard
insurance, and escrow impounds. This guarantee of costs is
preferably provided by the third party. This guarantee of costs
allows the borrower(s) to comparatively evaluate the advantages of
using various entities in the wrapped data to provide the loan.
[0064] Alternatively, the wrapped data relating to costs or rates
or combinations thereof can be presented in the form of a good
faith estimate. Such good faith estimates preferably include the
wrapped cost data with the interest rate and preferably the terms
associated therewith being guaranteed for a predetermined time. In
a further alternative, various aspects of the loan terms are
guaranteed unless an observable and verifiable index or other
appropriate data or means warrants a change in interest rates. All
of this wrapped data is preferably included in block 302.
[0065] This wrapped data is preferably provided to the borrower by
the independent third party so the borrower(s) can comparatively
evaluate which lender to use, and to evaluate and more accurately
predict the fixed costs associated with the financial transaction.
The usefulness of the wrapped data to the borrower is enhanced if
the wrapped cost data is provided for a plurality of lenders or
mortgage brokers or providers of the various services. This wrapped
data is preferably compiled in a computer, and forms a data
structure of comparative cost information for one or more
businesses providing the various services needed. The information
can be provided in a printed format, or transmitted electronically
to the borrower(s) or other appropriate entities by other means now
known or developed in the future.
[0066] Some or all of this wrapped data of block 302 can also be
provided to either the borrower via block 306 or to the lender or
provider of the financial services sought by the borrower(s) as in
block 308. Such information can be provide to the lender as in
block 308 without confidential restriction and thus disclosing
confidential information about the borrower(s) to the lender.
Alternatively, only the borrower(s) PIN number, or minimal
information on the borrower(s) may be disclosed for the reasons
discussed above regarding block 210 in FIG. 2A. The use of PIN
numbers or other identifying indicia associating a borrower with a
credit evaluation and optionally with a guaranteed cost quotation,
allows the borrower to shop anonymously and compare lenders or
other providers of the desired financial services. Advantageously,
the information, guarantees such as rate locks and cost locks for
fixed time periods, is all done by computer so the borrower(s) do
not have to leave the privacy of their residence.
[0067] Referring to block 308, that block can represent receipt by
one or more lenders or providers of the desired financial services
sought by the borrower. That block can also represent mortgage
brokers in a home loan situation. The lender or broker can accept a
registration number or PIN number instead of specific borrower
identifying information in order to guarantee an interest rate and
optionally but preferably to also guarantee closing costs (as
discussed above regarding block 302) for a specified number of
days. Such guarantee is preferably, but optionally, subject to
validation of all required loan approval documentation and
information at a later date. Various ranges of borrower information
can be provided from none (via the PIN number), to the borrower's
name, to full identity of the borrower and the borrower credit, to
the responses to the configuration questions, or any combinations
thereof. In order to provide the most useful information to the
user, current information from lenders is needed and information
from the borrower relative to the amount of loan and desired loan
terms is needed, thus information is transmitted both to and from
the lender (block 308) and the consumer (block 306), as reflected
by the arrows in FIG. 3. Because some of the information from the
lender and consumer overlaps with the information provided relative
to block 300, it is preferable, but not necessary, to have the
functions of blocks 300 and 302 performed by the same entity.
[0068] This process allows the borrower to shop several lenders
without disclosing the borrower's identity, yet allows the lender
confidence that the borrower qualifies for the loan. This process
is especially useful to the borrower if the credit grading of block
300 includes data from a variety of lenders, and if the cost
wrapping includes data from a variety of lenders and other service
providers.
[0069] In the sequence of FIG. 3, the third party providing the
services of block 300 is preferably an independent third party, as
defined above. Alternatively, the party providing the services of
block 300 may provide a mortgage. Such a third party packager
advantageously signs an agreement to provide a package that
includes a loan at a specified rate and term, thus locking in the
loan rate and terms. The closing costs of block 302 may or may not
also be locked-in. A lender preferably also signs the agreement or
ratifies the agreement after the borrower accepts the terms, with
the lender agreeing to provide the loan. The lender agrees only
subject to underwriting approval and appraisal etc., or other
verifications of information appropriate to the financial
transaction involved. As the mortgage is provided by or arranged by
the third party, the third party providing some or all of the
services of block 300 could lock in the loan rate and terms.
Optionally, but preferably, the third party could also lock some or
all of the costs as discussed regarding block 302, with or without
the variations on some or all of the costs as discussed regarding
block 302. Such third parties could optionally guarantee a
specified loan rate with a guaranteed price for all settlement
costs, which could be attractive to borrowers if the loan rate is
low as the closing costs are predictable, and in fact are
guaranteed.
[0070] Preferably, but optionally, the third party packager of
block 300 is an independent third party that merely provides credit
gradings, answers to configuration questions, or buyer
pre-qualifications to the lenders or other mortgage brokers or
other packagers as described in the immediately preceding
paragraph, and that provides the various functions described
relative to block 300.
[0071] The embodiment shown in FIG. 3, may also include any or all
of the functionality shown in FIG. 2B as indicated by connector
A.
[0072] As discussed below, in a further embodiment the independent
third party can present the wrapped data to the borrower(s), with
the wrapped data being provided free, as part of the services of
the third party, or for a fixed or variable fee.
[0073] Referring to FIG. 4, a diagram is shown that illustrates one
way in which the various steps described above can be achieved
using a computer system that is preferably a distributed system.
The independent third party has a computer accessible site 400 that
is preferably accessible through the Internet 410, or through other
data transfer means now known or developed in the future. The
lender(s) each also preferably have a computer accessible site 402
that is preferably accessible through the Internet 410, or through
other data transfer means now known or developed in the future,
with some of the currently known communication means being
discussed above. One or more borrowers, or their representatives
optionally, but preferably also each have a computer accessible
site 404 associated with each individual borrower or borrower
representative, with the site 404 being preferably accessible
through the Internet 410, or through other data transfer means now
known or developed in the future, with some of the currently known
communication means being discussed above.
[0074] The site 404 provides a user interface using web pages which
facilitate the user in providing information to and receiving
information from the third party website 400. For example, the
borrower can set up an account which includes a PIN number for
accessing the site. Web pages including forms for the borrower to
enter information, such as the purpose of the loan, borrower's
income information, etc. are provided to the borrower via the
borrower site 404. After applicable loan programs have been
determined by the user, the loan program data can be uploaded to
the borrower computer and be displayed via the borrower web site
404. The borrower is able to compare the various loan packages
without exposing personal information to any of the lenders.
Preferably, but optionally, the loan package information is
displayed in a spread sheet type format.
[0075] The third party site 400 has or has access to a database 406
that is preferably, but optionally accessible through a web site or
through other data transfer means now known or developed in the
future, with some of the currently known communication means being
discussed above.
[0076] The database 406 preferably contains a data structure
comprising a searchable database of information provided or
compiled in response to one or more of blocks 100, 102, 302 and
220. Rather than have all information consolidated in a single
database, plural databases can be used, either partitioned within a
single structure or distributed spatially. Preferably, database 406
contains information from lenders supplied in response to blocks
100 and/or 102, and contains cost data supplied in response to
block 302 and/or 220.
[0077] Access to the database is preferably controlled by the third
party, especially regarding loan provider criteria of block 102 and
cost data of block 302, although in appropriate circumstances the
lender(s) or service providers whose data is contained in the
database 406 may have direct access to their own information in
order to update the information. Preferably only the third party
extracts information from the database 406 through a search engine
that may be located with the database 406 or on the third party's
web site 400 in the event that the database 406 and the equipment
operating the web site 400 are spatially separated such as being in
different geographic locations.
[0078] The third party's site 400 also preferably has access to or
contains a credit grading module 408 to allow the third party to
analyze information, such as evaluating borrower input from block
100 and/or 102 relative to the lender requirements in database 406
or with the cost data from block 302 and/or 220. This searching and
analysis is advantageously achieved through a loan search engine
that is preferably at site 400, but that could be located elsewhere
and accessible from the site 400. Thus, the credit grading module
408 is advantageously executed by a server associated with web site
400 running a loan search engine that compares borrower information
with lender criteria and loan and closing cost information. The
exact nature of the information analyzed will vary with the nature
of the financial transaction involved. Alternatively, the module
could be in the form of a downloadable program that borrowers can
execute on their own computers or information processors.
[0079] The third party preferably sends the analyzed search results
in a manner and in a form deemed appropriate by the third party and
in compliance with the privacy requirements of the various parties
providing information contained in the database 406. The search
results are preferably, but optionally transmitted via the Internet
410, or distributed as otherwise described above.
[0080] As mentioned, the borrower(s) or their representatives can
input appropriate information to the database 406 directly via the
Internet 410, or with third party transcription assistance through
phone, fax, mail, etc. or through other means described above or
developed in the future. Preferably the borrower supplied
information is reviewed, monitored, analyzed or processed in some
manner by the third party or by an entity managing the database 406
in order to ensure the integrity, accuracy and completeness of the
information provided by the borrower.
[0081] The lender site 402 also preferably has access to consumers
through the Internet 410, as shown, or through other means
described herein or later developed. The lender site 402 preferably
has software allowing borrowers to provide information as in blocks
100 and/or 102. The lender site 402 can transmit that information
to the third party site 400 for processing by the third party as
described herein. The third party operating the site 400 can be and
is preferably independent, but could be part of the same company as
the lender 402 transmitting the information, or could have
contractual agreements to process information for such lender(s).
The computer interconnection and the access to the information on
one or more databases as described herein, allows implementation of
the various financial transactions described herein.
[0082] In a further way to use the this system and process, a
borrower can enter various loan criteria that are of importance to
the borrower (e.g., monthly payment or closing costs) into the
borrower's computer or the third party's processing equipment at
site 400, and search for a loan for which the borrower qualifies.
That allows the borrower direct access to the analytical and search
capabilities of the credit grading module 408, and the database
406. This assumes that borrower information of the type obtained in
block 100 and/or 102 has been obtained and is used in the analysis
and search. But the borrower's credit grading need not be actually
disclosed to the borrower to conduct such searching and analysis.
The credit grading could be stored on site 400 or otherwise
provided to or determined by module 408 without providing that
information to the borrower. This withholding of the credit grading
information can inhibit uses from reverse engineering the credit
grading algorithm in order to game the system. That assumes that
the credit grading algorithm is not publicly known, or is not
readily available or is not known to the borrower.
[0083] As a further way to use the system and process described
herein, after finding a suitable loan through the search engine
associated with site 400 (whether the search is done by the
borrower or the third party), the borrower could select a loan
package and apply for a loan. The information could be transmitted
over the Internet 410 or other computer linkages, or as otherwise
described herein or developed later. In connection with such loan
application, some or all of the information associated with the
borrower that is stored in or accessible by site 400, can be
transmitted to or accessible by the lender providing the loan
package selected by the borrower. This loan package preferably has
a guaranteed loan rate (via block 302). The costs associated with
the loan are preferably, but optionally also guaranteed, preferably
by the lender but possibly by an unrelated party that provides or
arranges the various services associated with the closing of the
loan transaction.
[0084] As shown in FIG. 4, the third party web site 400 and the
lender web site 402 may be separate and distinct web sites.
However, it will be appreciated that a single web site may be used
in which the user interface (web pages) displayed and available
functions depend on whether the user is a borrower or a lender.
[0085] Although Internet web sites are shown, other types of
interactive systems and user associated interfaces could be used.
For example, borrowers and lenders could access the system via an
online services network (America Online, Microsoft Network, etc),
an interactive television system, a touch-tone telephone interface,
e-mail, a telephone-based voice recognition system such as TellMe,
or other ways of transmitting information now known or developed in
the future.
[0086] While an illustrative and presently preferred embodiment of
the invention has been described in detail herein, it is to be
understood that the inventive concepts may be otherwise variously
embodied and employed and that the appended claims are intended to
be construed to include such variations except insofar as limited
by the prior art. Further, the various features of this invention
can be used alone, or in varying combinations with each other and
are not intended to be limited to the specific combination
described herein.
* * * * *