U.S. patent application number 13/935428 was filed with the patent office on 2014-01-16 for automated quality control assessments of datasets associated with real estate transactions.
This patent application is currently assigned to CoreLogic Solutions, LLC. The applicant listed for this patent is CoreLogic Solutions, LLC. Invention is credited to N. Grande Bucca, Charlotte Haberaecker, Cynthia H. Keith, Mark Oliphant, J. Harvey Trimble.
Application Number | 20140019318 13/935428 |
Document ID | / |
Family ID | 42941333 |
Filed Date | 2014-01-16 |
United States Patent
Application |
20140019318 |
Kind Code |
A1 |
Haberaecker; Charlotte ; et
al. |
January 16, 2014 |
AUTOMATED QUALITY CONTROL ASSESSMENTS OF DATASETS ASSOCIATED WITH
REAL ESTATE TRANSACTIONS
Abstract
A computer-based system assesses whether documents are accurate
and sufficient to support various transactions. In one aspect, a
document manifest is provided in connection with quality control
results and corresponding reports. The document manifest lists
documents that are required for a particular transaction. The list
may also be associated with document publication pursuant to the
transaction. The document publication aspect allows dataset quality
control procedures to be associated with documents published for a
transaction. This aspect also allows confirmation that the
appropriate version of the published set of documents is or was
used for the transaction.
Inventors: |
Haberaecker; Charlotte;
(Annandale, VA) ; Trimble; J. Harvey; (Great
Falls, VA) ; Oliphant; Mark; (Easton, MD) ;
Bucca; N. Grande; (Tenafly, NJ) ; Keith; Cynthia
H.; (Great Falls, VA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
CoreLogic Solutions, LLC |
Irvine |
CA |
US |
|
|
Assignee: |
CoreLogic Solutions, LLC
Irvine
CA
|
Family ID: |
42941333 |
Appl. No.: |
13/935428 |
Filed: |
July 3, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13302830 |
Nov 22, 2011 |
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13935428 |
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10989559 |
Nov 17, 2004 |
8078512 |
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13302830 |
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10405890 |
Apr 1, 2003 |
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10989559 |
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10326570 |
Dec 20, 2002 |
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10405890 |
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60369030 |
Apr 1, 2002 |
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Current U.S.
Class: |
705/30 |
Current CPC
Class: |
G06Q 40/12 20131203;
G06Q 40/10 20130101; G06Q 10/10 20130101; G06Q 50/16 20130101; G06F
40/134 20200101; G06Q 40/025 20130101; G06Q 10/087 20130101; G06Q
40/02 20130101; G06F 40/226 20200101; G06F 40/14 20200101 |
Class at
Publication: |
705/30 |
International
Class: |
G06Q 50/16 20060101
G06Q050/16; G06Q 40/00 20060101 G06Q040/00 |
Claims
1-20. (canceled)
21. A system for confirming that a mortgage loan will be
subsequently marketable to an investor in a secondary mortgage
market, the system comprising: physical data storage configured to
store a plurality of datasets; and a computer system in
communication with the physical data storage, the computer system
comprising computer hardware, the computer system programmed to:
access a first electronic mortgage dataset stored in the physical
data storage, said first electronic mortgage data set used to
populate a first set of documents and corresponding to a closing;
access a second electronic mortgage dataset stored in the physical
data storage, said second electronic mortgage dataset used to
populate a second set of documents and corresponding to the
closing; and apply a quality control process to the first
electronic mortgage dataset to at least: verify that the first
electronic mortgage dataset is sufficient to populate and
accurately provide the first set of documents; verify that the
first electronic mortgage dataset complies with a rule set that
applies to determine whether the first electronic mortgage dataset
includes elements that support transferring the loan to the
investor; and identify any discrepancies between the first
electronic mortgage dataset and the second electronic mortgage
dataset.
22. The system of claim 21, wherein the first electronic mortgage
dataset comprises a lender dataset.
23. The system of claim 22, wherein the second electronic mortgage
dataset comprises a closing agent dataset.
24. The system of claim 21, wherein at least one of the rules of
the rule set is provided by the investor.
25. The system of claim 21, wherein the first electronic mortgage
dataset comprises an XML file.
26. The system of claim 21, wherein the first electronic mortgage
dataset comprises an electronic document.
27. The system of claim 21, wherein the computer system is further
configured to provide a report comprising an indication of
compliance with the rule set or an indication of one or more items
to be completed to obtain compliance with the rule set.
28. The system of claim 21, wherein the first electronic mortgage
dataset is in a format that complies with a specification published
by MISMO.
29. A non-transitory computer readable storage medium comprising
instructions which, when executed by a computer system that
includes a data processor and is connected to at least one data
repository, perform a method comprising: accessing, by the computer
system through a communication channel, a first electronic mortgage
dataset stored in the at least one data repository, said first
electronic mortgage dataset used to populate a first set of
documents; accessing, by the computer system through a
communication channel, a second electronic mortgage dataset stored
in the at least one data repository, second electronic mortgage
dataset used to populate a second set of documents; and applying,
by the data processor of the computer system, a quality control
process to the first electronic mortgage dataset to at least:
verify that the first electronic mortgage dataset is sufficient to
populate and accurately provide the first set of documents; verify
that the first electronic mortgage dataset complies with a rule set
that applies to determine whether the first electronic mortgage
dataset includes elements that support transferring the loan to an
investor; and identify any discrepancies between the first
electronic mortgage dataset and the second electronic mortgage
dataset.
30. The non-transitory computer readable storage medium of claim
29, wherein the first electronic mortgage dataset comprises a
lender dataset.
31. The non-transitory computer readable storage medium of claim
30, wherein the second electronic mortgage dataset comprises a
closing agent dataset.
32. The non-transitory computer readable storage medium of claim
29, wherein at least one of the rules of the rule set is provided
by the investor.
33. The non-transitory computer readable storage medium of claim
29, wherein the first electronic mortgage dataset comprises an XML
file.
34. The non-transitory computer readable storage medium of claim
29, wherein the method further comprises providing a report
comprising an indication of compliance with the rule set or an
indication of one or more items to be completed to obtain
compliance with the rule set.
35. The non-transitory computer readable storage medium of claim
29, wherein the first electronic mortgage dataset is in a format
that complies with a specification published by MISMO.
36. A computer-implemented method for confirming that a mortgage
loan will be subsequently marketable to an investor in a secondary
mortgage market, the method comprising: receiving, by a computer
system through a network communication channel, an electronic
mortgage dataset that is used to populate a set of documents; and
applying, by a data processor of the computer system, a quality
control process to the electronic mortgage dataset to at least:
verify that the electronic mortgage dataset is sufficient to
populate and accurately provide the set of documents; and verify
that the electronic mortgage dataset complies with a rule set that
applies to determine whether the electronic mortgage dataset
includes elements that support transferring the loan to the
investor.
37. The computer-implemented method of claim 36, wherein the
electronic mortgage dataset comprises a lender dataset.
38. The computer-implemented method of claim 36, wherein the
electronic mortgage dataset comprises an XML file.
39. The computer-implemented method of claim 36, wherein the method
further comprises providing a report comprising an indication of
compliance with the rule set or an indication of one or more items
to be completed to obtain compliance with the rule set.
40. The computer-implemented method of claim 36, wherein the
electronic mortgage dataset is in a format that complies with a
specification published by MISMO.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. application Ser.
No. 13/302,830, filed Nov. 22, 2011, which is a continuation of
U.S. application Ser. No. 10/989,559, filed Nov. 17, 2004, entitled
"Document Manifest and Publication in Association with Dataset
Quality Control," which is a continuation-in-part of U.S.
application Ser. No. 10/405,890, entitled "Electronic Mortgage
Quality Control" and filed on Apr. 1, 2003, which is a
continuation-in-part of U.S. Application No. 10,326,570, filed Dec.
20, 2002 and entitled "Certification for Expedited Mortgage Sales,"
which claims the benefit of U.S. Provisional Application No.
60/369,030, filed Apr. 1, 2002 and entitled "System, Specification
& Tools for Creating Processing, and Validating Electronic
Documents." The entire contents of these applications are hereby
incorporated by reference.
BACKGROUND
[0002] 1. Field of the Invention
[0003] This invention relates generally to data processing, and
more particularly to a manifest and publication functionality
applied in conjunction with the review of electronic datasets.
[0004] 2. Description of the Related Art
[0005] Borrowers often use lenders to finance real estate
transactions in the primary mortgage market. A mortgage loan
closing may involve a property sale, or a refinancing of an owned
property. Where there is a property sale, a typical mortgage loan
closing can involve a buyer, seller, and lender. The lender loans
funds to the buyer, and disburses them to the seller to complete
the transaction. The buyer signs a promissory note (also referred
to as a mortgage note) that obligates the buyer to repay the loaned
funds. The buyer is thus often referred to as the borrower in the
mortgage loan closing transaction.
[0006] Lenders sell mortgages to investors in what is known as the
secondary mortgage market. Examples of investors include government
sponsored entities (GSEs) such as Fannie Mae, Freddie Mac, and
Ginnie Mae. Investors also include commercial banks, community
banks, savings and loan associations, and others. Some of these
entities participate as both lenders and investors at various
times. That is, they both sell and purchase portfolios of
mortgages. Similar mortgages are also often pooled together and
used to as security for investment instruments referred to as
mortgage-backed securities.
[0007] A problem with the sale of loans in a secondary market is
the lag time between the original acquisition of the mortgage by
the lender (e.g., at the closing) and the sale of the mortgage to
the investor.
[0008] Electronic documents are being introduced for mortgage
transactions. Use of these documents can be beneficial to
participants in such markets because they can reduce the amount of
physical error checking that is often required for paper documents,
as well as the number of opportunities for creating discrepancies
and errors among and between the various forms used by different
participants. However, even where a lender uses electronic
documents, a typical closing will still often implement traditional
paper based practices, wherein borrowers sign standard paper forms
using pen and ink (also referred to as "wet" signing in the
industry). Where such a mortgage is later sold to a secondary
market investor, since traditional paper forms are used,
traditional delays in providing funds to lenders pursuant to the
mortgage purchase by the investor have remained.
[0009] Another problem with transactions in the secondary mortgage
(and other) markets is that investors often have complicated
requirements for purchasing loans. Lenders often use experienced
analysts to try to ensure that loans will meet these complicated
requirements before they agree to lend the money to the borrower.
Sometimes, analysts make mistakes and loans are later found not to
be marketable to the investor. The loan then likely becomes what is
referred to as a "scratch & dent" loan that is sold at
substantially discounted rates as compared to what the lender would
have gotten from the investor. Moreover, a loan may be subject to
repurchase obligations if the investor finds it to be deficient
after purchase. There the lender would have to repurchase the loan,
and then market it as a scratch & dent loan, incurring losses
from the sale of the loan as well as additional marketing
expenses.
[0010] Another problem with electronic documents is that there are
various different systems to which a document will need to
integrate. Even where all of the parties to a transaction, and
parties to related transactions use the same electronic document
format, there are still often discrepancies among and between the
variously defined documents.
[0011] Still another problem with electronic documents relates to
determination of the appropriate documents to be used for a
particular transaction, and assurance that the transaction and
related transactions implement the correct version of such
documents. With real estate closing transactions, a wide variety of
documents may be required for inclusion in a proper closing
package, depending upon factors such as the type of loan product
and the governing State. Even where traditional paper closings are
implemented, the determination of the elements in a closing package
is often made ad hoc, based upon the experience of the closing
agent or other party. Some document origination systems include a
facility for printing documents, and thus at some point may provide
a list of documents to be printed pursuant to a transaction.
However, such lists are not designed for recovery after the
transaction takes place, and are also not designed for
post-printing association with the printed documents.
[0012] What is needed is a quality control system that overcomes
the problems of conventional systems.
SUMMARY
[0013] The present invention includes aspects that provide greater
predictability in terms of marketability of electronic documents
following anticipated transactions, accommodate consistency among
the various documents connected to a given transaction, and
expedite sales of mortgage loans involving electronic mortgage
documents even where traditional pen and ink signing is used
pursuant to closings.
[0014] The present invention may be provided in the context of an
electronic mortgage document quality control system. For example, a
quality control process may be applied to electronic mortgage
documents corresponding to loans that are candidates for sale on
the secondary mortgage market. A quality control system manages
numerous potential rule sets. A rule set particular to a
transaction type includes rules that, when satisfied, verify that
the electronic mortgage document is appropriate for the transaction
type. A lender can thus, for example, subject a candidate
electronic mortgage document to the quality control process and
receive confirmation that the corresponding loan can subsequently
be sold to an investor prior to originating the loan.
[0015] The rules also allow the generation of reports that are
tailored to potential problems with electronic mortgage documents.
This allows the lender to correct errors or omissions, and thus
modify the electronic mortgage document so that it will be known to
be marketable. Although one embodiment of this process applies to
secondary mortgage market transactions, it is also applicable to
transactions other than sales on the secondary mortgage market.
[0016] According to one aspect of the present invention, a document
manifest is provided in connection with quality control results and
corresponding reports. The document manifest lists documents that
are related to (and, depending upon the party, required for) a
particular transaction, such as a real estate closing. The list may
also be provided in association with a document publication feature
that is provided according to another aspect of the present
invention. The document publication aspect allows assurance that
quality control procedures are applied to the electronic mortgage
dataset used to produce documents that are published for a
transaction (e.g., a closing). This aspect allows a party (e.g.,
closing agent) to ensure proper publication of documents, and
parties engaging in post-closing activities to do the same.
[0017] The document manifest aspect of the present invention may be
provided as a computer-implemented method that involves accessing
an electronic mortgage dataset corresponding to a request for a
computer implemented quality control check in connection with a
particular real estate transaction; identifying a plurality of
documents that are required for the particular real estate
transaction in association with the request; verifying that the
electronic mortgage dataset is sufficient to accurately provide the
plurality of documents; and providing a list of the plurality of
documents that is verifiably connected to the electronic mortgage
dataset, whereby correct versions of the plurality of documents may
be published pursuant to a completion of the particular real estate
transaction and independently obtained for additional real estate
transactions that follow the particular real estate transaction. It
may alternatively be provided as software, computer program
products, systems, and the like that provide such a
functionality.
[0018] As indicated, the document publication process is provided
in connection with the quality control. A publication value such as
"Printed" is associated with electronic mortgage datasets to
indicate whether a corresponding package of documents has been
readied (e.g., quality control checked and printed) for a
transaction such as a closing. The publication process also may
incorporate versioning. When a given package of documents is
published, it is preferably versioned incrementally. Additionally,
each document that is printed pursuant to publication includes some
kind of indication of the package version number. This allows the
documents in the package to be collectively managed, while also
ensuring accuracy and integrity of the underlying data.
[0019] The present invention can be embodied in various forms,
including computer implemented methods, computer program products,
computer systems and networks, user interfaces, application
programming interfaces, and the like.
BRIEF DESCRIPTION OF THE DRAWINGS
[0020] These and other more detailed and specific features of the
present invention are more fully disclosed in the following
specification, reference being had to the accompanying drawings, in
which:
[0021] FIGS. 1A-B are event diagrams illustrating an embodiment of
quality control;
[0022] FIGS. 2A-B are event diagrams illustrating an embodiment of
quality control procedures in support of the expedited sale of
mortgage loans;
[0023] FIG. 3 is a block diagram illustrating an example of an
electronic document architecture.
[0024] FIGS. 4A-B are schematic diagrams illustrating examples of
systems in which EQC systems and corresponding functionality is
provided.
[0025] FIG. 5 is a block diagram illustrating an embodiment of an
EQC system.
[0026] FIGS. 6A-B illustrate an example of a format for an
electronic document.
[0027] FIG. 7 is a schematic diagram illustrating an application of
EQC processes and corresponding transactions.
[0028] FIG. 8 is a display diagram illustrating an example of an
EQC results report.
[0029] FIGS. 9A-B are display diagrams illustrating another example
of an EQC results report that includes a document manifest.
[0030] FIG. 10 is a schematic and flow diagram illustrating an
embodiment of a process for publishing document sets for real
property transactions.
DETAILED DESCRIPTION
[0031] In the following description, for purposes of explanation,
numerous details are set forth, such as flowcharts and system
configurations, in order to provide an understanding of one or more
embodiments of the present invention. However, it is and will be
apparent to one skilled in the art that these specific details are
not required in order to practice the present invention.
[0032] FIGS. 1A-B are event diagrams illustrating an embodiment of
an electronic mortgage quality control ("EQC") based transaction
100. The illustrated participants in the transaction 100 include a
lender, closing agent, EQC system provider, and investor.
[0033] Although participants are shown separately, at times the
roles of multiple participants may merge. For example, the investor
may provide a mortgage services platform, and within that context
provide EQC functions that can be referred to as an EQC system.
[0034] The EQC system variously offers business predictability to
participants. Features provided by the EQC system include
determinations whether electronic data sets are sufficient to
support a particular transaction, and whether data sets of multiple
parties participating in a given transaction are consistent and
accurate. Although the EQC system is applicable to any transaction,
for ease of description it is detailed in connection with the sale
of a mortgage loan from a lender to an investor in the secondary
mortgage market. In that regard, the EQC system includes rules that
are used to determine whether electronic data corresponding to the
loan is accurate includes the necessary elements to support such a
transaction.
[0035] The rules provided by the EQC system can be thought of as
falling within multiple categories. The first can be referred to as
a "core set" that is required to generally support a given
transaction. For example, industry standards that govern the sale
of loans from any lender to any investor in the secondary mortgage
market dictate the constitution of a core set of rules for that
type of transaction. The additional categories are respectively
party driven. For example, a particular investor may contribute
rules beyond the industry standard, and a particular lender may
have an even more stringent review process than the investor, and
thus desire still further rules. The EQC system is arranged to
variously accommodate rule contributions. For example, the EQC
system may include the core set of rules by default, and include
mechanisms for allowing participants to submit additional
rules.
[0036] An agreement 102 between the lender and the investor,
wherein the investor promises to buy EQC compliant mortgage loans
from the lender in exchange for the lender's successfully invoking
the EQC system, allows the sale of such mortgage loans without
requiring the lender to make certain representations and warranties
concerning the marketability of particular loan products in the
secondary mortgage market. Successfully invoking the EQC system
refers to submitting the electronic mortgage data set to be used
for the loan, and receiving a "pass" indication regarding that
data. A pass indication means that the data has satisfied all of
the conditions found in the rules applied to the data by the EQC
system. Where all of those conditions are satisfied, it can be said
that the EQC system produces no "findings" based upon application
of those rules. Preferably, the waived representations and
warranties include those pertaining to whether the mortgage loan
(i.e., the promissory note) sold by the lender to the investor is a
legally enforceable asset. This allows the lender to avoid
repurchase obligations should the loan be to be found deficient
after the secondary market sale. Although this representation will
be waived, the lender will still be required to make other
representations, such as those involving appraisal of the property
and credit worthiness of the borrower.
[0037] The agreement aspect is optional. Even if the agreement is
not implemented, the lender can implement the EQC system to assist
in the preparation of loan packages that include all necessary
components for marketability. Initially, the lender creates 104 the
loan package, usually based upon interactions with a borrower who
is either purchasing or refinancing a property. The lender often
uses a loan originating system (LOS) to prepare the package. The
closing package for a loan includes a note, a security instrument,
RESPA required documents, and other documents.
[0038] Lenders have various systems for generating loan packages,
some of which do not implement their own LOS. For example, the
lender may originate a mortgage and create the necessary documents
in conjunction with a service provider's electronic mortgage
system, such as the MORNETPlus.RTM. 2000 system, which implements
Desktop Underwriter.RTM., Desktop Originator.RTM., and MORNETPlus
Connections, all provided by Fannie Mae. In particular, the Desktop
Underwriter.RTM. works with various conventional LOS systems to
allow lenders to originate mortgages and create documents such as
loan applications. Other pertinent documents can also be created by
independently using an LOS, or through MORNETPlus Connections.
There are various alternatives, including but not limited to those
working with the Freddie Mac Loan Prospector.RTM., third party
document preparation software, and others.
[0039] Preparation of the loan package results in the creation of
an electronic mortgage data set ("EMD"). The EMD may be variously
embodied. For example, the EMD may be a lender dataset that is
applicable to the loan package, and is used to create corresponding
documents. The EMD may also be provided as an Extensible Markup
Language (XML) based file containing previously defined elements
and attributes, and corresponding values.
[0040] In another alternative, the EMD may be a formal electronic
mortgage document. Although aspects of the present invention are
applicable to any data set, an example of a format for a formal
electronic mortgage document is described further below, with
reference to FIGS. 3 and 6A-B. Additionally, regardless of how it
is embodied, the EMD may later be represented in paper form where
the EMD is used to create paper documents, if applicable.
[0041] Preferably, the EQC request and EMD are sent together to the
EQC system, for application of the request to the EMD. There, the
EQC request and EMD can be commonly transmitted but separately
packaged. Alternatively, particularly where a formal document
definition is applied, the EQC request and the EMD can be packaged
together. In another alternative, the EMD may already reside with
the EQC system, or be provided by another party (e.g., a closing
agent), with the EQC request being independently provided to the
system.
[0042] With the EQC request functionality, lenders (or others, e.g,
closing agents, title cos., appraisers, etc.) send their data to
the EQC system, where the EQC rules are applied to the data, and
corresponding results file is returned to the requestor.
[0043] The EQC system maintains rules to be applied to EMDs in a
database. Each loan product will preferably have a rule set
tailored to the product. For example, an investor has requirements
for a particular loan product that are reflected in the rule set
for that loan product. These rules vary in complexity, from those
that merely ensure the presence of predetermined fields in the EMD,
to those having more complicated logic. Detailed examples of rule
sets are described in connection with FIG. 5, below.
[0044] After receipt of the EQC request, the EQC System runs 110 an
EQC Request functionality against the submitted EMD. For loan
products, this entails identifying the product, retrieving the
appropriate rule set for the loan product from its rules database,
and applying the rules to the loan product. Preliminary validation,
such as XML validation against a DTD for the EMD, may also be
applied prior to application of the rules, as described further
below. The format of the EQC request will vary, but an example of
an EQC format is described further below.
[0045] The EQC System then generates 112 results corresponding to
the request. Preferably, the results are recorded in the form of a
report. The EQC results can be variously rovided to one or more
recipients. Three example modes include asynchronous, synchronous,
nd postback. In the asynchronous mode, the results are retained by
the EQC system and are ssociated with a report identifier (e.g., a
GUID). The report identifier is later used to retrieve the EQC
results. For example, the lender may provide the identifier to the
investor, who may then use the identifier to make their own EQC
request, which returns the same results. In the synchronous mode,
the EQC results are returned in association with the EQC request.
In the postback mode, the EQC results are simply posted to a web
server corresponding to an URL submitted with the request. FIG. 1A
illustrates a potential application of a synchronous mode wherein
the lender receives 114 EQC results corresponding to its submitted
106 EQC request.
[0046] FIG. 8 is a display diagram illustrating an example of an
EQC results report 800. The report 800 includes an Analysis Summary
Information section 802, an EMD Summary section 804, a Loan
Characteristics section 806, and a Findings section 808. The
Analysis Summary Information section 802 contains basic information
to identify the underlying loan, identify the date and time that
the EQC request was run (e.g., to distinguish the report from other
EQC reports for the same loan and/or EMDs), and whether any issues
were found in the particular EQC run.
[0047] The EMD summary section 804 identifies the EMDs to which the
EQC request and report apply. Preferably, each EMD submitted to the
EQC system is associated with a uniquely identified so that the
data can later be correlated to EQC results. An example for such an
identifier is a date/time stamp for the EMD. The date/time stamp
can variously originate. Where the EMD is a data set coming from an
LOS or other party system, the date/time can correlate to a time
when a corresponding file is entered into the system. Where the EMD
is XML data, a time stamp correlating to the file containing the
XML data can have the date/time stamp. Alternatively, an element or
attribute in the XML data can define a value (such as date/time)
that is used to identify such an EMD. Where the EMD is a formal
electronic document, a field in the electronic document (which
itself may be an XML element or attribute) can contain the
date/time stamp value. Still further, an EMD (formal or informal)
can be a file containing a time/date stamp, to which a
tamper-evident seal is applied. A "seal" wrapping an electronic
document that is created by a digital signature. The seal can be
verified to ensure that no changes have been made to the EMD since
the seal was put in place.
[0048] The Loan Characteristics section 806 contains information
that provides further information about the loan, preferably a
basic overview of characteristics that are believed to be of value
to the reader of the report. Finally, the Findings section 808
contains details about issues that are found by application of the
relevant rules to the subject EMD. If no issues are found, this may
merely indicate "no issues", or "EQC pass", or "no findings" or any
other indication of those type of results.
[0049] As indicated, the EQC results in this example pertain to the
following EMDs: LOS data, Closing Agent (CA) Data, and an
electronic closing document. Accordingly, the illustrated Findings
section 808 includes Lender Data Set Issues, Lender Data Set
Comparison Issues, Closing Agent Data Set Issues and Lender/Closing
Agent Data Set Comparison Issues. The "comparison" issues pertain
to consistency of data among various sources (e.g., closing
document to EMD, or EMD to EMD). The remaining issues pertain to
rules that examine EMDs for the presence of certain information.
More examples of rules are described further in the tables
below.
[0050] FIGS. 9A-B are display diagrams illustrating another example
of an EQC results report 900a-b that includes a document manifest.
This example of an EQC results report 900a-b may be used in
connection with the document publication process of the present
invention. The report 900a-b includes an Analysis Summary
Information section 902, an EMD Summary section 904, a Loan
Characteristics section 906, a Findings section 908a-b, an Issues
Summary section 910, and a Document Manifest Section 912.
[0051] The Analysis Summary Information section 902, EMD Summary
section 904, Loan Characteristics section 906 and Findings section
908a-b respectively include the same information as was described
for the commonly named sections (802-808) in the example of FIG.
8.
[0052] This EQC results report 900a-b adds the Issues Summary
section 910 and the Document Manifest section 912. The Issues
Summary section 910 includes a general description of the issues
that were discovered in connection with the processing of an EQC
request corresponding to an electronic mortgage dataset. In
addition to corresponding to the particular entries found in the
Findings section, 908a-b, this particular example of the Issues
Summary section 910 includes entries relevant to the information in
the Document Manifest section 912, as well as the document
publication process that is described further below. Generally, the
EQC process that implements the document publication in accordance
with the present invention ensures that the closing documents that
are published in connection with a closing are based upon a dataset
that is current, consistent with other relevant datasets, and
reviewed for error.
[0053] The Issues Summary section 910 allows the user to quickly
review the categories of issues found without requiring review of
the detailed information found in the Findings section 908a-b. The
Issues Summary section 910 is generally organized according to the
categorization of the underlying rule sets that are used to check
submissions and generate EQC results as described further
below.
[0054] The five categories that are preferably implemented in
embodiments using the document publication feature are as
follows.
[0055] The first category of issues is comparison of lender and
closing agent data. When these issues exist, the following text
will appear in the Issues Summary section 910: "1. Data used to
populate the Lender's printed documents differs from the data used
to populate the Closing Agent's printed documents."
[0056] The second category of issues is errors in the lender's data
set. When these issues exist, the following text will appear in the
Issues Summary section 910: "2. Data contained in the Lender's Loan
Origination System contained errors."
[0057] The third category of issues is differences between a
lender's system and printed documents data sets. When these issues
exist, the following text will appear in the Issues Summary section
910: "3. Data used to populate Lender's printed documents differs
from the most current data in the Lender's Loan Origination
System.
[0058] The forth category of issues is errors in the closing
agent's data set. When these issues exist, the following text will
appear in the Issues Summary section 910: "4. Data used to populate
the Closing Agent's printed documents contained errors."
[0059] Finally, the fifth category of issues is differences between
a closing agent's system and printed documents data sets. When
these issues exist, the following text will appear in the Issues
Summary section 910: "5. Data used to populate Closing Agent's
printed documents differs from the most current data in the Closing
Agent's System."
[0060] The Document Manifest section 912 includes a listing of
those documents that should be included as part of the final
closing package used by the Closing Agent. The listing may be used
by the Closing Agent to ensure that all of the correct documents
are published pursuant to a closing.
[0061] The Document Manifest section 912 may also be used by any
party engaging in a post-closing activity that relates to the
closing, to either confirm that all of the correct documents were
published for the closing, or to ensure that the correct documents
are being used for the relevant post-closing activity. The related
transaction may, for example, be taking custody of, recording,
reviewing, or engaging in any process related to one or more of the
documents in the closing package. In any event, the connection to
the EQC results allows confirmation of the adequacy and accuracy of
the data contained in the documents.
[0062] Preferably, the Document Manifest section 912 provides a
listing of the documents corresponding to the closing package, such
as the rows in the table in EQC results report 900b. Columns
corresponding to the document name, document version, date/time, #
of pages, borrower signature required, file name, and comments may
also be provided. The document version field is described further
in connection with the document publication aspect of the present
invention below. Preferably, the "document version" in this field
corresponds to a version number that is tied to publication of the
documents in the closing package. In that instance the column could
also be called "publication version" if desired. The version number
is also preferably represented in the indicator that is provided on
displayable (e.g., printed) versions of the published documents,
which helps users to ensure that printed documents correspond to
the document manifest and thereby the applied quality control
processes.
[0063] The document manifest may be provided as desired by the
parties in a transaction. Alternative examples of the document
manifest may contain more, fewer, or different entries from those
in the illustrated example.
[0064] The remaining information in the Document Manifest section
912 is useful for ensuring that all of the pages of a document are
present, that the proper number of copies are provided, and other
information useful for locating and identifying corresponding
files, as well as the date/time stamp corresponding to the
published version.
[0065] Regardless of the mode and content, the report can be put in
various formats. However, one preferred report uses a formal
electronic document format. As described further below, this type
of document includes main data and view sections, with the main
data section containing results information, and the view section
containing presentation formatting for rendering the printed or
viewed report (e.g., FIG. 8). A header section containing fields
identifying the document as an EQC results document, and other
criteria, is also included.
[0066] With the provision of the EQC results, the lender (or other
party) has immediately verifiable indication of compliance with the
rule set(s) corresponding to the EQC request, or indication of what
needs to be done to gain compliance. This, for example, allows a
particular lender to revise an EMD so that it complies with the
expectations of a particular investor, prior to closing the loan.
The lender can remedy the faults identified in the report and then
resubmit the modified package to again seek an indication that the
loan will be transferable. These features afford a level of
business predictability that is completely absent from conventional
systems.
[0067] Once the lender has submitted an EQC request and is
satisfied with the report (and has verified completion of any other
necessary preconditions, such as appraisal and title search), the
lender sends 116 the closing package to the closing agent in
preparation for the closing. The closing package can be sent using
conventional mechanisms, including but not limited to regular
postal service, express mail services, electronic mail, electronic
data transfer, or other any other form of communication.
[0068] The closing 118 is also a conventional paper or electronic
closing. In the paper closing, the closing agent obtains closing
documents by receiving them in paper form from the lender, or by
printing them based on a formal electronic document or other data
set, or through other means. In the electronic version, the
relevant parties electronically sign the corresponding electronic
mortgage documents. The closing is completed by having the
documents reviewed and executed by relevant parties, such as the
borrowers. The executed documents include, among others, the
mortgage note. At this (or some prior) time, the closing agent may
wish to check the closing agent data set for the closing to ensure
that it is consistent with the actual closing data in the closing
package, and to apply any additional closing agent specific rules
to the same.
[0069] Once all of the loan documents are executed, they are sent
120 to lender and/or the investor, again using conventional means
for sending paper or electronic documents. The electronic closing
package may be variously embodied. For example, a single
"electronic document" containing views corresponding to the
different paper documents could be provided, or an archive file
format, such as a conventional Java.TM. JAR file, or a ZIP file
could contain multiple electronic documents respectively
corresponding to the different required documents can be
provided.
[0070] As indicated in FIG. 1B, at some point the lender offers 122
the loan to the investor. Although this process is shown to occur
after the closing, it may also occur before the closing. Various
conventional formats and protocols for offering to sell the loan to
the investor may be used, such as Funding Express.RTM. and/or
MORENET as provided by Fannie Mae. The lender and the loan have
pertinent data that are used to connect the sending of funds to a
lender pursuant to a particular purchase.
[0071] Although sending 124 the EQC results is shown to occur after
the closing, the investor may be variously made aware of the EQC
results. As described, the EQC results can be posted to the
investor when the EQC request is made by the lender prior to the
closing. Alternatively, a report retained by the lender can be sent
to the investor, or the investor may independently make an EQC
request and thereby receive the results. Still further, the report
may actually be sent to other parties, such as a third party
reviewer of the results.
[0072] After conventional review processes (or the certification
process described in connection with FIGS. 2A-B), the purchase
proceeds are sent 126 to the lender. Sending purchase proceeds,
also referred to as the release of funds to the lender for the loan
purchase, can use established funding protocols. Funding options
include processes that provide the lender with early payment for a
loan to be sold to an investor. Funds are typically sent to the
lender in advance of pooling or pool settlement date (and a fee
charged to the lender), subject to established credit limits. Once
the lender determines the final disposition of the loan (e.g., to
be sold as Cash or MBS--tied to a specific commitment/forward sale)
the loan is delivered 128 to the investor--at which point the
investor will "settle up"--any additional monies due from the
lender based on the early funding plus the fee component.
Alternatively, with a direct sale, documents are typically received
and validated by either investor's custodial function or a 3rd
party custodian. There is no "settle up" period because the price
and delivery has already been established.
[0073] FIGS. 2A-B are event diagrams illustrating an embodiment of
quality control procedures in support of the expedited sale of
mortgage loans. Here, the features of predictability, data
integrity verification, and efficiency described above in
connection with the EQC System are integrated with a conventional
closing involving pen and ink signing of paper closing documents,
for expedited funding pursuant to the purchase of loans by an
investor. This is accomplished by running an EQC request on a
formal electronic document, and providing EQC results that are
evident both in relation to the electronic document and the printed
versions of documents created from the electronic document. In one
embodiment, the electronic document is updated to reflect the EQC
results, and this update will include information that causes the
corresponding printed documents to contain a unique mark that
corresponds to the EQC results. This allows parties to later rely
upon the EQC results for integrity and completeness of the data in
the electronic document, as described above, and to rely upon the
unique mark on the executed, printed document actually used in the
closing to verifiably associate the document to the EQC results.
For example, an investor may receive the EQC results and the
electronic document for a loan, identify the executed paper
documents from the closing as associated with those EQC results and
electronic document, and rely on the same in releasing funds
pursuant to a purchase of the loan.
[0074] Referring to FIG. 2A, after the front-end procedures of
creating electronic loan documents, an EQC request is made. Here,
in addition to providing an EQC results report, the electronic
documents are updated to reflect the same. Preferably, part of this
update is modifying the electronic document to cause the electronic
document to produce a printed document having a unique mark
corresponding to the EQC result. One preferred marking is the
previously described date/time stamp. Alternative markings, such as
a uniquely created identifier that is generated by the EQC system
and applied to the EMD that is later used to create prints, can
also be used. Again, this may be an iterative process wherein the
lender remedies any errors found during each EQC request, with the
electronic document being modified upon receipt of a satisfactory
result. Under those conditions, each iteration would include a new
date/time stamp.
[0075] An electronic closing package that has been reviewed and
updated according to this process may be referred to as an EQC
compliant electronic closing package. The lender sends 202 the
closing package to the closing agent prior to the closing, and
after any other necessary conditions (e.g., title search,
appraisal, etc.) are completed.
[0076] The closing agent then prints 204 the necessary documents
for the closing using the information in the electronic closing
package. Alternatively, the lender may have done the same, and thus
will have sent the materials to the closing agent already in paper
form. Regardless, all necessary documents, such as the note, will
contain a mark connecting the printed document to the EQC compliant
electronic closing package. The mark may be evidenced anywhere on
the documents, such as in the footer.
[0077] The closing agent then conducts a conventional closing 206,
wherein the documents are reviewed and executed by relevant
parties, such as the borrowers. As indicated, the executed
documents include the note.
[0078] The executed closing documents and the electronic closing
package are sent 208 to a certifying agent. The certifying agent
then verifies that the executed documents correspond to the
electronic closing package, and performs additional certifications,
as follows. First, the certifying agent checks 210 the EQC status
of the electronic closing package. Preferably, this includes
referring to the EQC results already associated with the electronic
closing package. The certifying agent also determines whether the
executed paper corresponds to the electronic closing package and
the EQC results by verifying that the paper contains the unique
mark. Checking 210 the EQC status may also include making another
post closing EQC request, although others such as the investor may
alternatively perform this task.
[0079] Once it has been verified that the electronic closing
package, the signed paper document, and the EQC results are all
commonly connected, that certifying agent checks 212 the executed
closing package in order to make additional certifications. The
certifying agent then issues 214 a certificate that represents that
the executed note corresponds to the EQC results, in addition to
one or more of the following representations: that the printed
documents were signed properly pursuant to the closing; that funds
were properly disbursed (typically to the borrower); and that a
particular note format was used (e.g., for the State or product).
The certificate may also be issued in relation to a contract among
the lender, investor and certifying agent, or, alternatively, an
electronic surety policy covering the above-described
representations and warranties, with the investor being designated
as a beneficiary the policy along with the lender. The certificate
may be variously sent to the investor (and the lender) such as by
e-mailing an Adobe Acrobat.RTM. PDF file.
[0080] The electronic closing package is also sent to the investor.
This allows the investor to run a post closing EQC check, if
desired. The investor can also review the certificate and perform
any additional in-house data comparisons prior to sending 218 funds
to the lender pursuant to its purchase of the loan. The sequences
for offering 216, funding 218, and receiving 220 the loan are
described above in connection with FIGS. 1A-B. The investor relies
on the certificate to provide funds to the lender without
traditional delays involved in selling mortgages in the secondary
market. Normally, the investor would not immediately send funds to
a lender pursuant to the purchase of a loan, without additional
steps such as the review of the executed closing documents by a
title company or other third party, and provision of corresponding
representations and warranties by the lender. By contrast, EQC
system participation allows the lender and investor to proceed with
the sale without such representations and warranties, and allows
them to do so without requiring traditional document review to
ensure the completeness and correctness of the loan data in the
closing documents.
[0081] Before moving to further description of the operations of
the EQC system, it is helpful to review an example of an electronic
document format. FIG. 3 is a block diagram illustrating components
of an electronic document usable in conjunction with embodiments of
quality control in accordance with the present invention, although
various other electronic document types and formats may also be
used. The electronic document 300 includes a header section 310, a
data section 320, and a view section 330. The electronic document
300 may also include a signature section 340 as part of its format;
however, the signature section might not be used where paper
closing documents are used, or the signature section 340 may merely
indicate that paper documents were used and signed, in lieu of
maintaining an electronic signature.
[0082] The electronic document 300 is preferably defined using a
mark-up language. The electronic document 300 may be structurally
altered depending upon the processing environment. For example, it
may become desirable to strip one or more of header 310, data 320,
view 330 and signature 340 sections from the electronic document
300 to facilitate processing, display, transmission, or for
intended use. Particularly, an electronic document that is only
intended for machine processing may at times only include the
header and data sections 310, 320, or an electronic document that
is only intended for viewing may not contain a data section 320
(e.g., a billing statement emailed to a client).
[0083] The header section 310 contains information about the
document itself, such as its version, the type of document (e.g.,
that the document is a mortgage note, trial transcript, etc.) and
whether or not all parties have signed. The data section 320
contains the information corresponding to that originating from an
equivalent paper document, such as data from a mortgage note. The
view section 330 contains tags that describe how to format and
present the data contained in the document. For example, the view
section 330 contains tags that describe how to format and present a
printed mortgage note.
[0084] The header and data sections 310, 320 are preferably written
in extensible markup language (XML) and the view section 330 is
preferably written in extensible hypertext markup language (XHTML),
which are conventional languages for creating electronic documents,
although various alternative languages may be utilized. The names
of the tags and the structure of XML documents are defined by a
document type definition (DTD). The DTD associated with a
particular electronic document describes the tags or markup and the
structure of the document, and specifies which tags contain other
tags. Conventional XML and XHTML programming techniques can be used
to create the tags particular to content and format required by
industry standards or the like.
[0085] The data section 320 can be organized using elements as
well. For example, it may be generally demarcated by a "DATA"
element that is subdivided into MAIN and MAP elements, with the
MAIN element containing the XML structural description of the data
model for the particular electronic mortgage document. For example,
the MAIN element might incorporate LOAN (the terms and features of
the loan, e.g., the interest rate and loan amount), BORROWER
(information about the borrower), LENDER (information about the
lender), PROPERTY (information about the property which is the
subject of the mortgage), and EXECUTION (information about the date
and location of the execution of the note) elements.
[0086] The MAP element generally links fields in the data section
320 to presentation fields in the view section 330. An electronic
document may include more than one "view," so there may be a MAP
element for each view that a DATA element is linked to. For
example, if an electronic document contained three different view
sections representing the data from a single data section, there
would be three corresponding MAP elements within the DATA
element.
[0087] The linking provided by the MAP element is preferably
provided by elements that link values in the view section 330 to
corresponding ones in the data section 320. There are various ways
that a linking element can reference the necessary values, such as
by including a pointer to a field in the data section 320 (e.g., in
an attribute) and a pointer to a field in the view section 330
(e.g., in another attribute). Conversion elements may be associated
with or contained by linking elements, to accommodate differences
in format between the data and view sections.
[0088] FIGS. 6A-B illustrate an example of a listing 600 for an
electronic document structurally configured according to the
architecture of FIG. 3. This listing is not exhaustive, but is
merely provided to illustrate where various data would be found
within a so-configured electronic document. The listing 600
includes a header section 620, a data section 630 containing a main
data section 660 and map section 670, a view section 640, and a
signature section 650. The function of each of these sections is
described in connection with the corresponding elements of FIG. 3.
As is evident from the example MAIN section 660, fields and
corresponding values are found therein, such as the illustrated
MORTGAGE_TERMS InterestRatePercent which is shown to have the value
"6". The electronic data set can be found in whole or in part in
this MAIN section of the electronic document. That is, the fields
and corresponding values that comprise the electronic data set to
be examined by the EQC system are defined in this section. The view
section 640 is used to produce printed and displayed versions of
documents. Additionally, confirmation that fields and corresponding
values in the main data section 660 match those in the view section
640 can be provided by using the ARC elements found in the MAP
section 670. Each ARC element contains references to the fields and
corresponding values. For example, as described, the main data
section 660 identifies the InterestRatePercent to have the value
"6". Similarly, the view section 640 provides a value "6" for the
InterestRate field. The first ARC element found in the map section
670 associates these fields and values. During a validation of the
electronic document, this ARC element is used to verify that the
main data matches the view data for the interest rate field. As
indicated, the listing provided in FIGS. 6A-B is not exhaustive,
nor is this the only type of data set to which the EQC system
functionality is applied.
[0089] Sometimes, the content of an electronic document will be
influenced by industry standards and customs. Elements in the EQC
rules can be made to comply with the elements defined by these
standards and customs, so that the EQC system readily works with
the data typically used by industry participants. An example of a
format for an electronic document is provided by specifications
published by the Mortgage Industry Standards Maintenance
Organization (MISMO).
[0090] FIGS. 4A-B are schematic diagrams illustrating examples of
computer systems 400a, 400b in which an EQC system operates in
accordance with the present invention. In one system 400a, the
lender 402, closing agent 404, title company 406, and investor 408
are shown. Each of these parties 402-408 can be interconnected by a
public network such as the Internet, and they can variously
communicate using conventional architectures and protocols, such as
according to a client server model implementing the TCP/IP
communication protocol suite, and any necessary protocols for
transmitting, accessing, displaying, printing, and otherwise using
the above described electronic documents. Alternatively, a private
network, a combination or public and private networks, or any
conventional arrangement for conducting communications appropriate
for the described subject matter can interconnect the parties.
[0091] The parties also have access to a mortgage services ASP 410,
which variously registers the different parties and allows
appropriate activities for mortgage transactions. For example, the
mortgage services ASP 410 may communicate with the lender 402 to
create electronic documents for a closing package. This activity
may be complemented by communications with the investor 408, who
may provide assistance and information for loan origination and
underwriting purposes. The closing agent 404 and title company 406,
which may serve as the certifying agent, also can access the
electronic documents, such as through receipt of the electronic
closing package, etc.
[0092] As indicated in FIG. 4B, in some systems 400b a mortgage
services platform 414 may be provided by one of the parties
402-408. Particularly, the investor may provide the mortgage
services platform 414, which would provide services similar to the
mortgage services ASP (410). In either case, the mortgage services
preferably include an EQC system 412, 416. Additionally, each of
the parties 402-408 includes an EQC module having functionality
that allows EQC requests to be submitted, and EQC results to be
received and displayed. Although certain systems are shown, other
systems including but not limited to those for the appraiser,
mortgage insurance, hazard, flood certification, and loan servicing
agent can similarly connect to the EQC system.
[0093] FIG. 5 is a block diagram illustrating an embodiment of an
EQC system 500 that includes a registration module 502, an EQC
request receiving module 504, an EQC rules engine 506, an EQC
results module 508, and an EQC rules repository 510.
[0094] The registration module 502 accommodates conventional
procedures for determining whether access to the EQC system 500 is
appropriate, and authenticates the party connected to the system.
Various conventional models may be implemented, but one preferred
approach uses a username and password combination. The registration
information and the corresponding functionality will also likely be
part of the mortgage services platform registration. Accordingly,
the username and password used on the mortgage services platform
will carry over to the EQC system 500. Registration is optional as
there may be users who are not formal registrants.
[0095] The EQC request receiving module 506 receives EQC requests.
Although requests from lenders and closing agents are mainly
described, it is understood that various other types of EQC System
participants may also make EQC requests. Examples of these
participants include title companies, the county recorder,
custodial services, loan servicing agents, and others who would use
data in the electronic mortgage document or rely upon the same for
their participation in a transaction related to the loan.
Additionally, a request may require connection to the data sets
used by multiple parties, such as both the lender LOS and the
closing agent system. For embodiments implementing the document
publication functionality, the EQC request receiving module 506
receives requests for publication of documents usable in a real
estate transaction in conjunction with requests to check electronic
mortgage datasets.
[0096] As indicated, participant systems are configured to include
EQC modules configured to generate EQC requests and receive EQC
results. The EQC request may be prepared according to the
previously described electronic document format. For example,
relating to a closing, a lender LOS EQC module extracts LOS data
related to a closing, and packages it according to the electronic
document format. Since the EQC request will not necessarily entail
a viewable document, this EQC request includes header information
identifying the data as LOS data, and the main data section
includes the underlying fields and corresponding values. As with
the electronic closing package, the EQC request can be embodied as
a single "electronic document." Alternatively, the EQC request can
be included as part of a file format with multiple electronic
documents respectively corresponding to the different documents
(Note, HUD-1, Appraisal, etc.) to be processed by the EQC system,
along with a header identifying the package as an EQC request.
Regardless, the header could include a request identifier, username
and password information, and instructions for handling the
results.
[0097] Table 1 below illustrates information that is useful for an
EQC Request, and certain corresponding utility functions.
TABLE-US-00001 TABLE 1 EQC Request/Functions CATEGORY/ATTRIBUTE
FORMAT DESCRIPTION REQUEST_GROUP Standards Format Identification
String Version ID corresponding to electronic document standard, if
applicable (null if other EMD) REQUEST RequestIdentifier Integer
Number used to identify the EQC Request RequestDateTime Datetime
Date time stamp of request. LoginAccountIdentifier String User ID.
LoginAccountPassword String Password. Function_Name String
Identifies the requested EQC service. REQUEST DATA
_GloballyUniqueIdentifier String Globally Unique Identifier (GUID)
that is returned by the system and used to retrieve the results.
Used for asynchronous integrations. CONNECTION _ModeIdentifier
String Identifies the communication model used to submit the
request (e.g., asynchronous, synchronous, postback)
_PostBackURLIdentifier String The URL of the web server where the
response will be posted. Required if ModelIdentifier = Postback.
MORTGAGE_PLATFORM_REQUEST SoftwareProviderAccountNumber String
Identifies the account number (e.g., for the Loan Origination
System or Closing Agent System). Casefileldentifier Integer
Identifies the casefile ID of the loan that the function is being
requested for. An ID will be created if one does
LenderInstitutionIdentifier Integer Institution ID that identifies
the lender or branch. ClosingCompanyIdentifier String Identifies
the closing company participating in the DATA_FILE Name String
Attached eMortgage Platform data file name VersionNumber String
Identifies the version of the EQC request. Type String The type of
attached file (e.g., "EMD", "XML only"). FormatType String Used to
determine if the attached data set contains current
_PopulatingSystemDocumentIdentifier String Used to identify the
system that has populated the data _DateTime Datetime The date/time
stamp corresponding to the submitted
[0098] This information is shown by way of example, and many of the
fields may be omitted. The request group category of information
identifies the type of document that is being analyzed pursuant to
the EQC request. Although as indicated one preferred embodiment
works with regular data sets, if the EMD happens to be defined
according to a particular specification, it can be so noted. The
Request and Request Data categories contain information that is
used to validate and identify the EQC request, and to similarly
call up corresponding EQC results. This information includes the
described user name and password. The EQC request receiving module
504 automatically communicates with the registration module 502
upon receipt of an EQC request package containing the username and
password, without requiring user intervention to provide the
information. An identifier for the EQC request, and a GUID used to
retrieve the EQC results in particular (e.g., asynchronous) modes
of operation, are also provided in this category of
information.
[0099] The Mortgage Platform Request category is optional and
includes information that is used for identifying participants who
are registered with the platform, to accommodate integration with
their facilities and appropriate reporting. An identifier with
previously entered loan information (CaseFileIdentifier) can be
used to correlate the request to such data.
[0100] The Data_File category contains information identifying and
describing the data against which the request is processed.
Optionally, where the request is integrated with the mortgage
services platform, a corresponding file name used by the platform
may be provided. The version number for the request is used to
distinguish results from various requests (i.e., a data file may be
subjected to several EQC requests before and after the closing, or
may have initial errors that are corrected--the version number is
used to keep track of those results). The type attribute indicates
the type of data that is being processed. As described, the
document may be a formal electronic mortgage document (EMD),
regular XML data, LOS data, etc. The FormatType attribute indicates
the actual format of the transactional document, paper or
electronic. Other attributes include those that identify the system
that populated the data file to be processed (e.g., LOS
identifier). Finally, the date/time stamp information corresponding
to the EMD is provided. In lieu of requiring a request format to
include this information, it can be automatically recognized or
extracted from submitted data.
[0101] The request receiving module 504 thus receives and
recognizes the EQC requests, and passes corresponding requests to
the EQC rules engine 506, which in turn accesses appropriate rule
sets from the EQC rules repository 510 and applies the rules
therein to the subject data.
[0102] As indicated, there are various types of rules. Some are
comparative, and ensure data consistency. Others check for the
presence of required information, or perform more complicated
analyses based upon existing information. Some rules include
conditions and corresponding rule mappings. The conditions can be
determined by Boolean phrases referred to as dependencies. The rule
mappings typically identify fields whose values are examined in
order to determine whether the mapping is satisfied. Error messages
specific to the conditional rules describe the problem where the
mapping is not satisfied. These messages are included in the EQC
results report (e.g., FIG. 8, FIGS. 9A-B). Example rules are set
forth in Table 2 below. The ordinarily skilled artisan will
recognize the alternatives, which will be dictated by the type of
transaction, corresponding industry custom and usage, and the
individual needs and desires of parties using the EQC system.
[0103] Still referring to the rules described in Table 2, examples
of various types of rules are evident. As is evident from the
table, columns Rule ID, Rule Type, Rule Name, Error Message,
Dependency and Rule Mapping are provided. The Rule ID allows an
indexed organization of all rules and as shown may simply be a
number. The Rule Type allows categorization of rules (and
corresponding definitions of rule sets) according to the
participants corresponding to the EQC request. Examples of these
include "Lender Intra" rules, which may be used where a lender
specific EQC request is made, "Closing Agent Intra" rules, which
may be used where a closing agent specific EQC request is made, and
"Lender/Closing Agent Inter" rules, which may be used where an EQC
request corresponding to both lender and closing agent data is
made. The error message column defines the error message to be
presented in the event that a rule is not satisfied or passed.
These pieces of information are used to populate the EQC reports.
The dependency column lists conditions that are used to provide
conditional dependencies that trigger application of rule mappings.
They can be thought of as part of the rule themselves, or as
prerequisites for the actual rule (which would be the rule
mapping). For example, with reference to Rule ID #1, where a face
to face interview is made, a government monitoring section must be
completed, even if the applicant indicates a refusal to provide the
information. Thus, if the field
Loan_Application_mterviewer_Information_ApplicationTakenMethodType
has the value "Face to Face," then the following rule mapping
applies: the field
Loan_Application_Borrower_Government_Monitoring_RaceNationalOri-
ginType cannot have a null value OR the field
Loan_Application_Borrower_Government_Monitoring_RaceNationalOriginRefusal-
Indicator must equal "Y".
[0104] These and other rules, rule dependencies, and mappings are
evident in the provided table.
TABLE-US-00002 TABLE 2 Sample Rules Rule Rule ID Type Rule Name
Error Message Dependency Rule Mapping Conditional on INTERVIEWER
INFORMATION ApplicationTakenMethodType 1 Lender The Government
Government If LOAN|_APPLICATION| ((LOAN|_APPLICATION|BORROWER|
Intra Monitoring section Monitoring section is
INTERVIEWER_INFORMATION GOVERNMENT_MONITORING must be complete not
complete for loan ApplicationTakeMethodType = GenderType and for
all face-to-face whose application was `FaceToFace`
LOAN|_APPLICATION|BORROWER| interviews. taken face-to-face.
GOVERNMENT_MONITORING RaceNationalOriginType) cannot be null) OR
LOAN|_APPLICATION|BORROWER| GOVERNMENT_MONITORING
RaceNationalOriginRefusalIndicator = "Y". Conditional on
Balloonlndicator 2 Lender If loan is not a Maturity date not If
LOAN|_APPLICATION| LOAN|_APPLICATION| Intra balloon, the correct.
LOAN_PRODUCT_DATA| LOAN_PRODUCT_DATA| maturity date must
LOAN_FEATURES LOAN_FEATURES MaturityDate be equal to the first
Balloonlndicator = `N` MUST EQUAL ((LOAN| payment date plus
_APPLICATION| less one month plus LOAN_PRODUCT_DATA| the loan term.
LOAN_FEATURES ScheduledFirstPaymentDate plus LOAN|_APPLICATION|
LOAN_PRODUCT_DATA| LOAN_FEATURES LoanOriginalMaturityTermMonths)
minus one month). Conditional on LoanAmortizationType 3 Lender Life
Rate Cap Life Rate Cap is If LOAN|_APPLICATION| LOAN|_APPLICATION|
Intra must be present missing MORTGAGE_TERMS LOAN_PRODUCT_DATA|ARM
for ARM loans. LoanAmortizationType =
RateAdjustmentLifetimeCapPercent cannot "AdjustableRate" be null. 4
Lender Margin must be Margin in missing. If LOAN|_APPLICATION|
LOAN|_APPLICATION| Intra present for ARM MORTGAGE_TERMS
LOAN_PRODUCT_DATA| loans. LoanAmortizationType =
ARM_IndexMarginPercent cannot be null. "AdjustableRate" 5 Lender
Margin must be Margin is formatted If LOAN|_APPLICATION|
LOAN|_APPLICATION| Intra formatted as incorrectly. MORTGAGE_TERMS
LOAN_PRODUCT_DATA| xx.xxx for ARM LoanAmortizationType =
ARM_IndexMarginPercent must be in the loans. Margin
"AdjustableRate" format of xx.xxx (must be rounded to three must
also be places to the right of the decimal). Value spelled out.
must also be spelled out. 6 Lender Subsequent Subsequent If
LOAN|_APPLICATION| LOAN|_APPLICATION| Intra adjustment cap
Adjustment Cap is MORTGAGE_TERMS LOAN_PRODUCT_DATA| must be present
missing. LoanAmortizationType = RATE_ADJUSTMENT_Subsequent- for ARM
loans. "AdjustableRate" CapPercent cannot be null. 7 Lender First
payment First Payment If LOAN|_APPLICATION| LOAN|_APPLICATION|
Intra adjustment cap Adjustment Cap is MORTGAGE_TERMS
LOAN_PRODUCT_DATA| must be present for missing.
LoanAmortizationType = RATE_ADJUSTMENT_InitialCapPercent ARM loans.
"AdjustableRate" cannot be null. 8 Lender First payment First
Payment If LOAN|_APPLICATION| LOAN|_APPLICATION| Intra adjustment
floor Adjustment Floor is MORTGAGE_TERMS LOAN_PRODUCT_DATA| must be
present for missing. LoanAmortizationType =
RATE_ADJUSTMENT_FirstChangeFloor ARM loans. "AdjustableRate"
Percent cannot be null. 9 Lender Interest Rate Interest Rate Change
If LOAN|_APPLICATION| LOAN|_APPLICATION| Intra Change Date must
Date is missing. MORTGAGE_TERMS LOAN_PRODUCT_DATA| be present for
all LoanAmortizationType = RATE_ADJUSTMENT ARM loans.
"AdjustableRate" FirstRateAdjustmentDate cannot be null.
Conditional on LoanAmortizationType and
ARM_ConversionOptionIndicator 10 Lender Conversion options
Conversion options If LOAN|_APPLICATION| (LOAN|_APPLICATION| Intra
must be present for are missing. MORTGAGE_TERMS
LOAN_PRODUCT_DATA|ARM| ARM loans that are LoanAmortizationType =
_CONVERSION_OPTION_FeeAmount, convertible. "AdjustableRate" and
LOAN| LOAN|_APPLICATION| APPLICATION| LOAN_PRODUCT_DATA|ARM|
LOAN_PRODUCT_DATA| _CONVERSION_OPTION_FeePercent,
_ARM_ConversionOptionlndicator = LOAN|_APPLICATION| "Y"
LOAN_PRODUCT_DATA_ARM| _CONVERSION_OPTION_PeriodEnd- Payment
Number, LOAN|_APPLICATION| LOAN_PRODUCT_DATA|ARM|
_CONVERSION_OPTION_PeriodStart- Payment Number) cannot be null
Conditional on LOAN_PURPOSE Type 11 Lender/ Assumption Fee
Assumption Fee If LOAN|_APPLICATION LOAN|_APPLICATION|RESPA_FEE|
Closing payee in Lender Payee does not match LOAN_PURPOSE_Type =
_PAYMENT_Paid ByTypeThirdPartyName Agent system must match in
Lender and Closing "Purchase" where LOAN|_APPLICATION| Inter
Assumption Fee Agent system. RESPA_FEE_SpecifiedHUDLineNumber =
payee in Closing `807` Data point from Lender data file Agent
system. and data point from Closing Agent data file must be the
same. 12 Lender/ Assumption Fee Assumption Fee If LOAN|_APPLICATION
LOAN|_APPLICATION|RESPA_FEE| Closing amount in Lender Amount does
not LOAN_PURPOSE_Type = _PAYMENT_Amount where LOAN| Agent system
must match match in Lender and "Purchase" _APPLICATION| Inter
Assumption Fee Closing Agent RESPA_FEE_SpecifiedHUDLineNumber =
amount in Closing system. `807` Data point from Lender data file
Agent system. and data point from Closing Agent data file must be
the same. 13 Lender/ Does Line 101 = Sales Price on HUD-1 If
LOAN|_APPLICATION ((LOAN|_CLOSING_DOCUMENTS| Closing Line 401 = LOS
(line 101 and 401) LOAN_PURPOSE_Type =
RESPA_HUD_DETAIL_LineItemAmount Agent Sales Price? does not match
value "Purchase" where LOAN| Inter in Lender system.
_CLOSING_DOCUMENTS| RESPA_HUD_DETAIL SpecifiedHUDLineNumber = `101`
MUST EQUAL LOAN| _CLOSING_DOCUMENTS|
RESPA_HUD_DETAIL_LineItemAmount where LOAN| _CLOSING_DOCUMENTS|
RESPA_HUD_DETAIL_SpecifiedHUDLine Number = `401`) in Closing Agent
file). These values must both equal Lender Field:
LOAN|_APPLICATION| TRANSACTION_DETAIL PurchasePriceAmount 14
Lender/ Deposit or Earnest Earnest Money on If LOAN|_APPLICATION
(LOAN|_CLOSING_DOCUMENTS| Closing Money on line 201 HUD-1 (line
201) LOAN_PURPOSE_Type = RESPA_HUD_DETAIL_LineItemAmount Agent of
HUD-1 must does not match value "Purchase" where LOAN| Inter equal
amount in in Lender system. _CLOSING_DOCUMENTS| Loan Origination
RESPA_HUD_DETAIL_SpecifiedHUDLine System. Number = `201`) from
Closing Agent file MUST EQUAL (LOAN|_APPLICATION|
TRANSACTION_DETAIL| PURCHASE_CREDIT_Amount where LOAN|_APPLICATION|
TRANSACTION_DETAIL| PURCHASE_CREDIT_Type = "EarnestMoney") 15
Closing Total Settlement Line 1400 on HUD-1 If LOAN|_APPLICATION
LOAN|_CLOSING_DOCUMENTS| Agent Charges to seller does not match
line LOAN_PURPOSE_Type = RESPA_HUD_DETAIL_LineItemAmount Intra
HUD-1 line 1400 502. "Purchase" where LOAN| must match
_CLOSING_DOCUMENTS| Settlement Charges
RESPA_HUD_DETAIL_SpecifiedHUDLine to seller on HUD-1 Number =
`1400` and LOAN| line 502. _CLOSING_DOCUMENTS|
RESPA_HUD_DETAIL_Line ItemPaidByType = "Seller" MUST EQUAL
LOAN|_CLOSING_DOCUMENTS| RESPA_HUD_DETAIL_LineItemAmount where
LOAN| _CLOSING_DOCUMENTS| RESPA_HUD_DETAIL_SpecifiedHUDLine Number
= `502` 16 Closing Contract Sales Price Contract Sales Price If
LOAN|_APPLICATION LOAN|_CLOSING_DOCUMENTS| Agent on line 101 and
401 on HUD-1 (line 401) LOAN_PURPOSE_Type =
RESPA_HUD_DETAIL_LineItemAmount Intra of HUD-1 must be is not
greater than "Purchase" where LOAN| greater than 0.00. 0.00.
_CLOSING DOCUMENT| RESPA_HUD_DETAIL_SpecifiedHUDLine Number IN
(`101`, `401`) must be >0.00. 17 Closing Contract Sales Price
Contract Sales Price If LOAN|_APPLICATION LOAN|_CLOSING_DOCUMENTS|
Agent on line 101 and 401 on HUD-1 (line 401) LOAN_PURPOSE Type =
RESPA_HUD_DETAIL_LineItemAmount Intra of HUD-1 must be should not
be present "Refinance" where LOAN| equal to 0.00 or for refinances.
_CLOSING_DOCUMENTS| null. RESPA_HUD_DETAIL_SpecifiedHUDLine Number
IN (`101`, `401`) MUST BE (= 0.00 or NULL). Conditional on
LOAN_PURPOSE_Type, LOAN_FEATURES_ConformingIndicator and
CONSTRUCTION_REFINANCE_DATA GSERefinancePurposeType 18 Closing HUD
line 303 must Cash back to borrower If LOAN|_APPLICATION
LOAN|_CLOSING_DOCUMENTS| Agent not exceed the exceeds the lesser of
LOAN_PURPOSE_Type = RESPA_HUD_DETAIL_LineItemAmount Intra lesser of
2% of the 2% of principal "Refinance" (where LOAN| principal amount
or amount or $2000. AND LOAN| _CLOSING DOCUMENTS| $2000 for
_APPLICATION| RESPA_HUD_DETAILSpecifiedHUDLine conforming loans
LOAN PRODUCT DATA| Number = that are not cash- _LOAN_FEATURES
`303`) out refinances. ConformingIndicator = MUST BE "Y" AND
LOAN|_APPLICATION| <= (the lesser of (.02 * LOAN| LOAN_PURPOSE|
APPLICATION| CONSTRUCTION.sub.--- MORTGAGE_TERMS LoanAmount OR
REFINANCE_DATA $2000)) GSERefinancePurposeType in
("NoCashOutFHAStreamlined Refinance", "NoCashOutFREOwnedRefinance",
"NoCashOutOther", "NoCashOutStreamlinedRefinance",
"ChangeInRateTerm") Conditional on MORTGAGE_TERMS MortgageType 19
Lender First payment date First Payment Date is If
LOAN|_APPLICATION| ((LOAN|_APPLICATION|LOAN Intra must be the first
not first of month. MORTGAGE_TERMS PRODUCT DATA|LOAN_FEATURES day
of the month MortgageType IN ("VA", "FHA")
ScheduledFirstPaymentDate (DD)) for VA and FHA MUST = "1" insured
loans. 20 Lender VA insured loans Loan amount exceeds If
LOAN|_APPLICATION! LOAN|_APPLICATION! Intra must not exceed VA
limit of $240,000. MORTGAGE_TERMS MORTGAGE_TERMS LoanAmount
$240,000. MortgageType = "VA" MUST BE <= 240,000. Conditional on
MERS MERSRegistrationIndicator 21 Lender Loans registered MERS is
not the If LOAN|_APPLICATION|MERS LOAN|_APPLICATION|MERS Intra with
MERS must loan's Mortgagee. MERSRegistrationIndicator = "Y"
MERSOriginalMortgageeOfRecordIndicator have MERS as the MUST = `Y`
Mortgagee. 22 Lender Loans registered MERS MIN number If
LOAN|APPLICATION! MERS LOAN|_APPLICATION|MERS|MERS Intra with MERS
must is missing. MERSRegistrationIndicator = "Y" MINIdentifier
cannot be null have a MIN number. Conditional on PROPERTY_State 23
Lender Flood Certification Flood Certification fee If
LOAN|APPLICATION| LOAN|_APPLICATION|RESPA_FEE| Intra fees cannot be
cannot be charged for PROPERTY_State = "Connecticut" _PAYMENT
Amount where LOAN|. charged for loan. _APPLICATION|RESPA_FEE_Type =
properties in "FloodCertification" must be 0.00 or null.
Connecticut. 24 Lender Document Document Preparation If
LOAN|APPLICATION| LOAN|_APPLICATION|RESPA_FEE|
Intra Preparation fees fee cannot be charged PROPERTY State =
"Texas" _PAYMENT_Amount where LOAN| cannot be charged for loan.
APPLICATION|RESPA_FEE_Type = for properties in
"DocumentPreparationFee" must be 0.00 Texas. or null. 25 Lender
Processing fees Processing fee cannot If LOAN|_APPLICATION|
LOAN|_APPLICATION|RESPA_FEE| Intra cannot be charged be charged for
loan. PROPERTY_State = _PAYMENT Amount where LOAN| for properties
in "Massachusetts" _APPLICATION|RESPA_FEE_Type = Massachusetts.
"ProcessingFee" must be 0.00 or null. 26 Lender Loans located in
the Trustee name is If LOAN|APPLICATION| LOAN|CLOSING DOCUMENTS|
Intra following states missing. PROPERTY_State IN (Alaska,
RECORDABLE DOCUMENT| must have a trustee Arizona, California,
Maryland, Texas, TRUSTEE_UnparsedName must not be name: Alaska,
Virginia, Washington, Arkansas, null. Arizona, Arkansas, Colorado,
District of Columbia, Idaho, California, Mississippi, Missouri,
Montana, Maryland, Texas, Nebraska, Nevada, North Carolina,
Virginia, Oregon, Tennessee) Washington, Colorado, District of
Columbia, Idaho, Mississippi, Missouri, Montana, Nebraska, Nevada,
North Carolina, Oregon, Tennessee 27 Lender/ For loans not
Settlement Date on If LOAN|_APPLICATION| LOAN|_CLOSING_DOCUMENTS|
Closing located in HUD-1 does not PROPERTY State NOT IN
LOAN_DETAILS ClosingDate Agent California, Nevada, match value in
Lender ("California", "Nevada", "Arizona", Data point from Lender
data file and data Inter Arizona, Hawaii, system. "Hawaii", "New
Mexico", point from Closing Agent data file must be New Mexico or
"Washington") the same. Washington, settlement date (Box 1) must
match LOS closing date. Conditional on LOAN FEATURES
ConformingIndicator, PROPERTY_FinancedNumberOfUnits and
PROPERTY_State 28 Lender Conforming loans Loan amount exceeds If
LOAN|_APPLICATION| LOAN|APPLICATION| Intra for single unit
conforming limit of LOAN_PRODUCT_DATA| MORTGAGE_TERMS LoanAmount
must properties not $322,700. LOAN_FEATURES be <=322,700.
located in Alaska or ConformingIndicator = "Y" and Hawaii must not
LOAN|_APPLICATION| exceed $322,700. PROPERTY_Financed NumberOfUnits
= "1" and LOAN|APPLICATION| PROPERTY_State <> ("Alaska" or
"Hawaii") 29 Lender Conforming loans Loan amount exceeds If
LOAN|_APPLICATION| LOAN|APPLICATION| Intra for single unit
conforming limit of LOAN_PRODUCT_DATA| MORTGAGE_TERMS LoanAmount
must properties located $484,050. _LOAN_FEATURES be <=484,050.
in Alaska or ConformingIndicator = "Y" and Hawaii must not
LOAN|APPLICATION| exceed $484,050. PROPERTYFinancedNumber OfUnits =
"1" and LOAN| _APPLICATION| PROPERTY_State = ("Alaska" or "Hawaii")
Conditional on LOAN_FEATURES EscrowWaiverIndicator 30 Lender/ The
sum of lines Initial escrow deposit If LOAN|_APPLICATION| Sum
(LOAN|_APPLICATION| Closing 1001-1008 on the on HUD-1 (sum of
LOAN_PRODUCT_DATA| RESPA_FEE|_PAYMENT_Amount Agent HUD1 must match
lines 1001-1008) does _LOAN_FEATURES where LOAN|_APPLICATION| Inter
the initial escrow not match value in EscrowWaiverIndicator = "N"
RESPA_FEE_SpecifiedHUDLineNumber = deposit amount in Lender system.
"1001`, 1002`, `1003`, `1004`, `1005`, the Lender system. `1006`,
`1007`, `1008`) Sum from Lender file and Closing Agent file should
be the same. 31 Lender/ Hazard insurance Number of months If
LOAN|_APPLICATION| LOAN|APPLICATION| Closing months escrowed
escrowed for Hazard LOAN_PRODUCT_DATA|
ESCROWCollectedNumberOfMonthsCount Agent on HUD-1 (line Insurance
on HUD-1 _LOAN_FEATURES where LOAN! APPLICATION! Inter 1001) must
match to does not match value EscrowWaiverIndicator = "N"
ESCROWJtemType = `HazardInsurance" Loan Origination in Lender
system. Data point from Lender data file and data System value.
joint from Closing Agent data file must be the same. 32 Lender/
Hazard insurance Hazard insurance If LOAN|_APPLICATION|
LOAN|APPLICATION| Closing amount per month monthly amount on
LOAN_PRODUCT_DATA| ESCROW_MonthlyPaymentAmount where Agent on
HUD-1(line HUD-1 does not _LOAN_FEATURES LOAN|_APPLICATION| Inter
1001) must match to match value in Lender EscrowWaiverIndicator =
"N" ESCROW_ItemType = "HazardInsurance" Loan Origination system.
Data point from Lender data file and data System value. joint from
Closing Agent data file must be the same. 33 Lender/ Total hazard
Total Hazard If LOAN|_APPLICATION|LOAN LOAN|_CLOSING DOCUMENTS|
Closing insurance escrow Insurance escrow PRODUCT DATA|
RESPA_HUD_DETAIL_LineItemAmount Agent amount on HUD-1 amount does
not _LOAN_FEATURES where LOAN|_CLOSING Inter (line 1001) must match
value in Lender EscrowWaiverIndicator = "N" DOCUMENTS| match to
Loan system. RESPA_HUD_DETAIL_SpecifiedHUDLine Origination System
Number = "1001" value. Data point from Lender data file and data
point from Closing Agent data file must be the same. 34 Lender/
Mortgage Number of months If LOAN|_APPLICATION|LOAN
LOAN|_APPLICATION|MI_DATA Closing insurance months escrowed for
PRODUCT DATA| MICollectedNumberOfMonthsCount Agent escrowed on
Mortgage Insurance on _LOAN_FEATURES Data point from Lender data
file and data Inter HUD-1 (line 1002) HUD-1 does not
EscrowWaiverIndicator = "N" point from Closing Agent data file must
be must match to Loan match value in Lender the same. Origination
System system. value. 35 Lender/ Mortgage Mortgage insurance If
LOAN|_APPLICATION|LOAN LOAN|APPLICATION|MI DATA| Closing insurance
amount monthly amount on PRODUCT DATA| MI_RENEWAL_PREMIUM_Monthly-
Agent per month on HUD-1 does not _LOAN_FEATURES Payment Amount
Inter HUD-1 (line 1002) match value in Lender EscrowWaiverIndicator
= "N" Data point from Lender data file and data must match to
system. point from Closing Agent data file must be Loan Origination
the same. System value. 36 Lender/ Total mortgage Total Mortgage If
LOAN|_APPLICATION|LOAN LOAN|_CLOSING_DOCUMENTS| Closing insurance
escrow Insurance escrow PRODUCT DATA|
RESPA_HUD_DETAIL_LineItemAmount Agent amount on HUD-1 amount does
not _LOAN_FEATURES where LOAN|CLOSING DOCUMENTS| Inter (line 1002)
must match value in Lender EscrowWaiverIndicator = "N"
RESPA_HUD_DETAIL_SpecifiedHUDLine match to Loan system. Number =
"1002" Origination System Data point from Lender data file and data
value. point from Closing Agent data file must be the same. 37
Lender/ City property taxes Number of months If
LOAN|_APPLICATION|LOAN LOAN|_APPLICATION| Closing months escrowed
escrowed for City PRODUCT DATA| ESCROWCollectedNumberOfMonthsCount
Agent on HUD-1 (line Property Taxes on _LOAN_FEATURES where
LOAN|_APPLICAT10N| Inter 1003) must match HUD-1 does not
EscrowWaiverIndicator = "N" ESCROW_temType = "CityPropertyTax" to
Loan match value in Lender Data point from Lender data file and
data Origination System system. point from Closing Agent data file
must be value. the same. 38 Lender/ City property taxes City
Property Tax If LOAN|_APPLICATION|LOAN LOAN|_APPLICATION|ESCROW
Closing amount per month monthly amount on PRODUCT DATA|
MonthlyPaymentAmount where LOAN| Agent on HUD-1 (line HUD-1 does
not _LOAN_FEATURES _APPLICATION|ESCROW_ItemType = Inter 1003) must
match match value in Lender EscrowWaiverIndicator = "N"
"CityPropertyTax" to Loan system. Data point from Lender data file
and data Origination System point from Closing Agent data file must
be value. the same. 39 Lender/ Total city property Total City
Property If LOAN|_APPLICATION|LOAN LOAN|_CLOSING_DOCUMENTS| Closing
taxes escrow Taxes escrow amount PRODUCT DATA|
RESPA_HUD_DETAIL_LineItemAmount Agent amount on HUD-1 does not
match value _LOAN_FEATURES where LOAN|_CLOSING Inter (line 1003)
must in Lender system. EscrowWaiverIndicator = "N" DOCUMENTS| match
to Loan RESPA_HUD_DETAIL_SpecifiedHUDLine Origination System Number
= "1003" value. Data point from Lender data file and data point
from Closing Agent data file must be the same. 40 Lender/ County
property Number of months If LOAN|_APPLICATION|LOAN
LOAN|_APPLICATION| Closing taxes months escrowed for County PRODUCT
DATA| ESCROW_CollectedNumberOfMonthsCount Agent escrowed on HUD-
Property Taxes on _LOAN_FEATURES where LOAN|APPLICATION| Inter 1
(line 1004) must HUD-1 does not match EscrowWaiverIndicator = "N"
ESCROW_ItemType = match to Loan value in Lender "CountyPropertyTax"
Origination System system. Data point from Lender data file and
data value. point from Closing Agent data file must be the same. 41
Lender/ County property County Property Tax If
LOAN|_APPLICATION|LOAN LOAN|_APPLICATION|ESCROW Closing taxes
amount per monthly amount on PRODUCT DATA| MonthlyPaymentAmount
where LOAN| Agent month on HUD-1 HUD-1 does not match
_LOAN_FEATURES APPLICATION|ESCROW_ItemType = Inter (line 1004) must
value in Lender EscrowWaiverIndicator = "N" "CountyPropertyTax"
match to Loan system. Data point from Lender data file and data
Origination System point from Closing Agent data file must be
value. the same. 42 Lender/ Total county Total County Property If
LOAN|_APPLICATION|LOAN LOAN|_CLOSING_DOCUMENTS| Closing property
taxes Taxes escrow amount PRODUCT DATA|
RESPA_HUD_DETAIL_LineItemAmount Agent escrow amount on does not
match value _LOAN_FEATURES where LOAN|CLOSING DOCUMENTS| Inter
HUD-1 (line 1004) in Lender system. EscrowWaiverIndicator = "N"
RESPA_HUD_DETAIL_SpecifiedHUDLine must match to Number = "1004"
Loan Origination Data point from Lender data file and data System
value. point from Closing Agent data file must be the same. 43
Lender/ Annual Number of months If LOAN|_APPLICATION|LOAN
LOAN|APPLICATION| Closing assessments escrowed for Annual PRODUCT
DATA| _ESCROW_CollectedNumberOfMonthsCount Agent months escrowed
Assessments on HUD- _LOAN_FEATURES where LOAN|_APPLICATION| Inter
on HUD-1 (line 1 does not match value EscrowWaiverIndicator = "N"
ESCROW_ItemType = "Assessment" 1005) must match in Lender system.
Data point from Lender data file and data to Loan point from
Closing Agent data file must be Origination System the same. value.
44 Lender/ Annual Annual Assessments If LOAN|_APPLICATION|LOAN
LOAN|_APPLICATION|_ESCROW Closing assessments monthly amount on
PRODUCT DATA| MonthlyPaymentAmount where LOAN| Agent months
escrowed HUD-1 does not match _LOAN_FEATURES
_APPLICATION|ESCROW_ItemType = Inter on HUD-1 (line value in Lender
EscrowWaiverIndicator = "N" "Assessment" 1005) must match system.
Data point from Lender data file and data to Loan point from
Closing Agent data file must be Origination System the same. value.
45 Lender/ Annual assessments Total Annual If
LOAN|_APPLICATION|LOAN LOAN|_CLOSING_DOCUMENTS|
Closing months escrowed on Assessment escrow PRODUCT DATA|LOAN
RESPA_HUD_DETAIL LineItemAmount Agent HUD-1 (line 1005) amount does
not match FEATURES where LOAN|_CLOSING DOCUMENTS| Inter must match
to Loan value in Lender EscrowWaiverIndicator = "N" RESPA_HUD
DETAIL Origination System system. SpecifiedHUDLineNumber = "1005"
value. Data point from Lender data file and data point from Closing
Agent data file must be the same. 46 Closing For loans where
Aggregate Escrow If LOAN|_APPLICATION|LOAN LOAN|_CLOSING DOCUMENTS|
Agent escrows are waived, adjusment is not blank. PRODUCT DATA|LOAN
RESPA_HUD_DETAIL LineItemAmount Intra the aggregate FEATURES
EscrowWaiverIndicator = where (where LOAN|CLOSING escrow adjustment
"Y" DOCUMENTS|RESPA_HUD_DETAIL on lines 1007 and
SpecifiedHUDLineNumber = "1007" or 1008 of the HUD-1 "1008") MUST
BE null or 0.00 must be blank. 47 Closing If escrows are not Escrow
waiver fee If LOAN|_APPLICATION|LOAN LOAN|_APPLICATION| Agent being
waived, an cannot be charged for PRODUCT DATA|LOAN
_RESPA_FEE_PAYMENT Amount where Intra "Escrow Waiver" loans where
escrows FEATURES EscrowWaiverIndicator = (LOAN|_APPLICATION| fee
cannot be are not waived. "N" RESPA_FEE_Type = "EscrowWaiverFee")
charged. MUST BE = 0.00 or null
[0105] Although Table 2 offers a sample listing of rules and
corresponding rule sets for various scenarios, as indicated the
rules can be variously organized. Table 3 offers another example of
a rules organization. Here, the rules are organized according to
the document type and the closing status. The values of these two
parameters dictates the identification of the rules in the rule
sets. For example, a pre-closing HUD-1 form examination entails
different rules than the post-closing review of the same form.
Similarly, other types of forms entail different rules even if the
closing status is the same. Again, these rules are offered by way
of example. The ordinarily skilled artisan will recognize the
alternatives.
TABLE-US-00003 TABLE 3 Rules by Closing Status and Document Type
Pre- Post- Closing Closing Ref. No. Check? Check? Subject Document
Review Task N-1 X X Note Verify Document/Closing Date (Except in
Dry Funding States) N-2 X X Note Verify Loan Amount N-3 X X Note
Verify Principal & Interest Payment N-4 X Note Verify Borrower
Names (on first page & signature lines) N-6 X X Note Determine
whether the loan will be FHA-Insured N-6a X X Note If N-6 = "Yes",
Verify FHA Case Number N-6b X Note If N-6 = "Yes", Verify FHA
Allonge Signed/Complete N-7 X X Note Verify First Payment Date N-8
X Note Determine whether a Power of Attorney applies N-8a X Note If
N-8 = "Yes", Verify signatures against POA N-9 X X Note Verify
Maturity Date N-10 X Note Verify all white-out/strikethrough areas
are initialed N-ll X X Note Verify Loan Number N-12 X X Note
Determine whether the loan is an ARM N-12a X X Note Verify Change
Date N-12b X X Note Verify Margin N-12c X X Note Verify Index N-12d
X Note Verify Conversion Options are correct N-12e X Note Verify
Payment Change Caps/Ceiling/Floor N-12f X Note Verify "ARM
Confirmation" in file N-12g X Note Verify ARM docs are appropriate
for the program N-13 X Note Verify Note is Valid in Property State
N-14 X X Note Verify Interest Rate N-15 X Note Verify Property
Address N-16 X Note Verify Late Charge Terms by product and state
N-17 X Note Verify that Signed Original Document is Present N-18 X
Note Verify All Pages Are Present N-19 X Note Verify Lender Name
N-20 X Note Verify Endorsement Accuracy N-21 X Note Verify Balloon
Addendum Present/Accurate (if applicable) SI-1 X X Security
Instrument Verify Document Date (Except in Dry Funding States) SI-2
X X Security Instrument Verify Loan Amount SI-3 X Security
Instrument Verify Borrower Names Signed as Typed SI-4 X X Security
Instrument Verify Loan Number SI-5 X X Security Instrument Verify
Legal Description SI-6 X X Security Instrument Verify Property
Address SI-7 X X Security Instrument Verify Maturity Date SI-8 X X
Security Instrument Verify all appropriate riders are attached SI-9
X Security Instrument Verify Borrower Name(s) & Signature Lines
against Vesting SI-10 X Security Instrument If N-6 = "Yes", Verify
FHA Case Number SI-11 X Security Instrument Verify County SI-12 X
Security Instrument Verify All Pages Are Present SI-13 X Security
Instrument Verify Lender Name SI-13 X X Security Instrument Verify
MERS Number ARM-1 X ARM Rider Verify Change Date ARM-2 X ARM Rider
Verify Margin ARM-3 X ARM Rider Verify Index ARM-4 X ARM Rider
Verify Conversion Options are correct ARM-5 X ARM Rider Verify
Documents are appropriate for the program HUD-1 X HUD-1 Verify no
State Unallowable Charges HUD-2 X HUD-1 Verify no FHA/VA
Unallowable Charges HUD-3 X HUD-1 Verify no Other Unallowable
Charges HUD-4 X HUD-1 Compare Deposit Amount to Purchase Agreement
HUD-5 X HUD-1 Verify Interim (Prepaid) Interest HUD-6 X HUD-1
Verify Buyer/Seller Signatures are present HUD-7 X X HUD-1 Verify
Underwriting Fee HUD-8 X X HUD-1 Verify Document Preparation Fee
HUD-9 X HUD-1 Verify Origination Fee (Line 801) HUD-10 X HUD-1
Verify Discount Fee (Line 802) HUD-11 X HUD-1 Verify Credit Report
Fee (Line 804) HUD-12 X HUD-1 Verify Appraisal Fee (Line 803)
HUD-13 X HUD-1 Verify Lender's Inspection Fee (Line 805) HUD-14 X
HUD-1 Verify Mortgage Insurance Application Fee (Line 806) HUD-15 X
HUD-1 Verify Assumption Fee (Line 807) HUD-16 X HUD-1 Verify CLO
Access Fee (Section 800) HUD-17 X HUD-1 Verify Tax Service Fee
("Tax Related Service Fee" per DTD-Section 800) HUD-18 X HUD-1
Verify Buydown Fee (Section 800-Text String Search) HUD-19 X HUD-1
Verify Construction Fee (Section 800~Text String Search) HUD-20 X
HUD-1 Verify Yield Spread Differential (Section 800~Text String
Search) HUD-21 X HUD-1 Verify Loan Processing Fee ("Processing Fee"
per DTD-Section 800) HUD-22 X HUD-1 Verify Application Fee (Section
800) HUD-23 X HUD-1 Verify State Bond/Agency Fee (Section 800)
HUD-24 X HUD-1 Verify Commitment Fee (Section 800) HUD-25 X HUD-1
Verify Supplemental Orig Fee (Section 800) HUD-26 X HUD-1 Verify
Flood Determination Fee (DTD = "Flood Certification" ~ Section 800)
HUD-27 X HUD-1 Verify Flood Zone Fee (Section 800-Text String
Search) HUD-28 X HUD-1 Verify MCC Fee (Section 800-Text String
Search) HUD-29 X HUD-1 Verify Bond Participation Fee (Section
800-Text String Search) HUD-30 X HUD-1 Verify "Reservation Fee"
(Section 800-Text String Search) HUD-31 X HUD-1 Verify TEX/VET
Origination Fee (Section 800- Text String Search) HUD-32 X HUD-1
Verify PERS Review Fee (Section 800-Text String Search) HUD-33 X
HUD-1 Verify CHFA Max Fee (Section 800-Text String Search) HUD-34 X
HUD-1 Verify CALRA Mortgage Loan Review Fee (Section 800-Text
String Search) HUD-35 X HUD-1 Verify CALRA Compliance Review Fee
(Section 800-Text String Search HUD-36 X HUD-1 Verify Compliance
Inspection Fee (Section 800- Text String Search) HUD-37 X HUD-1
Verify Deposit Verification Fee (Section 800- Text String Search)
HUD-38 X HUD-1 Verify Housing Second Mortgage Fee (Section 800-Text
String Search) HUD-39 X HUD-1 Verify Insurance Tracking Fee
(Section 800-Text String Search) HUD-40 X HUD-1 Verify MERS
Registration Fee (Section 800-Text String Search) HUD-41 X HUD-1
Verify Const-Perm Administration Fee (Section 800-Text String
Search) HUD-42 X HUD-1 Verify Quality File Fee-Wholesale Only
(Section 800-Text String Search) HUD-43 X HUD-1 Verify Construction
Interst (Section 900-Text String Search) HUD-44 X HUD-1 Verify Per
Diem Interest Differential (Section 900- Text String Search) HUD-45
X HUD-1 Verify Contingency Reserve (Section 1300-Text String
Search) HUD-46 X HUD-1 Verify PITI Reserves (Section 1300-Text
String Search) HUD-47 X HUD-1 Verify Administration Fee (Section
1300-Text String Search) HUD-48 X HUD-1 Verify Amortization
Schedule Fee (DTD: "Amortization Fee"-Section 1300) HUD-49 X HUD-1
Verify Loan Assignment Fee (Section 1300) HUD-50 X HUD-1 Verify
Loan Disbursement Fee (Section 1300- Text String Search) HUD-51 X
HUD-1 Verify Wire Fee (Section 1300-Text String Search) HUD-52 X
HUD-1 Verify Escrow Waiver Fee (Section 1300) HUD-53 X HUD-1 Verify
Miscellaneous Fee in APR (Section 1300- Text String Search) HUD-54
X HUD-1 Verify MCC Application Extension Fee (Section 1300-Text
String Search) HUD-55 X HUD-1 Verify MCC Closing Extension Fee
(Section 1300- Text String Search) HUD-56 X HUD-1 Verify MCC Late
Fee (Section 1300-Text String Search) HUD-57 X HUD-1 Verify Escrow
Holdback Inspection Fee (Section 1300-Text String Search) HUD-58 X
HUD-1 Verify Document Review Fee (Section 1300-Text String Search)
HUD-59 X HUD-1 Verify Const Perm Future Funds to Dis (Section
1300-Text String Search) HUD-60 X HUD-1 Verify Constr/Perm Initial
Draw (Section 1300- Text String Search) HUD-61 X HUD-1 Verify
Constr/Perm Second Draw (Section 1300- Text String Search) HUD-62 X
HUD-1 Verify Constr/Perm Third Draw (Section 1300- Text String
Search) HUD-63 X HUD-1 Verify Constr/Perm Four Draw (Section 1300-
Text String Search) HUD-64 X HUD-1 Verify Constr/Perm Escrow
Holdback (Section 1300-Text String Search) HUD-65 X HUD-1 Verify
All Title-Related Charges HUD-66 X HUD-1 Verify Presence of HUD-1
Addendum & Signatures HUD-67 X HUD-1 Verify all
white-out/strikethrough areas are initialed HUD-68 X X HUD-1 Verify
net funding amount: calculated according to the formula [LOAN AMT
less the Sum of Fees verified in Rules HUD-6 thru HUD-69] TIL-1 X
Truth-in-Lending Verify that all appropriate Statements are
Completed TIL-2 X Truth-in-Lending Verify that borrowers have
signed TIL-3 X Truth-in-Lending Verify Date TIL-4 X
Truth-in-Lending Verify Borrower Name(s) TIL-5 X Truth-in-Lending
Verify that APR is reasonable TIL-6 X Truth-in-Lending Verify
P&I Payment Amount TIL-7 X Truth-in-Lending Verify Prepayment
Penalty Status TIL-8 X Truth-in-Lending Verify Loan Amount TIL-9 X
Truth-in-Lending Verify Signature Lines TIL-10 X Truth-in-Lending
Verify Late Charge Terms PL-1 X Payment Letter Verify Signatures
PL-2 X Payment Letter Verify Totals are Accurate PL-3 X Payment
Letter Verify Loan Number TC-1 X X Title Commitment Verify Presence
of Title Commitment TC-2 X X Title Commitment Verify Legal
Description TC-3 X X Title Commitment Verify No Unallowable
Exceptions TC-4 X X Title Commitment Verify Correct Mortgagee TC-5
X X Title Commitment Verify Correct Mortgagor TC-6 X X Title
Commitment Verify Date Issued (earlier than closing date) TC-7 X
Title Commitment Verify Policy Jacket Present HAZ-1 X X Hazard
Insurance Verify Presence of Original Policy or Binder HAZ-2 X X
Hazard Insurance Verify Adequate Coverage HAZ-3 X X Hazard
Insurance Verify Adequate Term (1 Year Min) HAZ-4 X X Hazard
Insurance Verify Borrower Names HAZ-5 X X Hazard Insurance Verify
Property Address HAZ-6 X X Hazard Insurance Verify Correct
Mortgagee Clause HAZ-7 X X Hazard Insurance Verify Flood Policy
Present (if Required) CI-1 X Closing Instructions Verify
Settlement/Escrow Agent Information CI-2 X Closing Instructions
Verify FHA/VA Case Number CI-3 X Closing Instructions Verify Loan
Number CI-4 X Closing Instructions Verify Term CI-5 X Closing
Instructions Verify Borrower Name(s) & Vesting CI-6 X Closing
Instructions Verify 1st Payment Date CI-7 X Closing Instructions
Verify Impounds/Taxes CI-8 X Closing Instructions Verify Loan
Amount CI-9 X Closing Instructions Verify P&I Payment Amount
CI-10 X Closing Instructions Verify Property Address CI-11 X
Closing Instructions Verify Endorsements CI-12 X Closing
Instructions Verify Preliminary Exceptions CI-13 X Closing
Instructions Verify Maturity Date CI-14 X Closing Instructions
Verify Sales Price CI-15 X Closing Instructions Verify County A-1 X
Assignment Verify Date A-2 X Assignment Verify Loan Number A-3 X
Assignment Verify Borrower Name (agree to Vesting) A-4 X Assignment
Verify County A-5 X Assignment Verify Legal Description A-6 X
Assignment Verify Notary Section Complete A-7 X Assignment Verify
Signed by Notary A-8 X Assignment Verify Assistant Secretary
Signature A-9 X Assignment Verify Notary Stamp Clear A-10 X
Assignment Verify Present MISC-1 X Loan Application Verify Present
and Signed MISC-2 X HUD 92900 Add. Verify Present and Signed MISC-3
X VA1802AAdd. Verify Present and Signed MISC-4 X FHA Source of
Verify Present and Signed Funds MISC-5 X Closing Affidavit Verify
Present and Signed MISC-6 X Tax Information Verify Present Sheet
MISC-7 X Notice to Borrower Verify Present MISC-8 X FHA/VA Verify
Present Escrow Agreement MISC-9 X Survey & Affidavit Verify
Present MISC-10 X Initial Escrow Disc. Verify Present and Signed
MISC-11 X X Right to Cancel Verify Present MISC-12 X Right to
Cancel Verify Signed MISC-13 X Occupancy Verify Present and Signed
Agreement
[0106] The EQC rules, such as are represented in these tables, are
stored in the EQC rules repository 510 using conventional
techniques for storing and organizing data. The EQC rules
repository 510 can be a separate database of the rules, as
described, or could equally by embedded in code that provides the
EQC system functionality. The EQC rules repository will be
periodically updated to reflect additions to the rules and changes
to existing rules. Facilities for submitting new rules, such as
where a lender would like to include an additional condition on an
EQC request process particularly pertaining to their documents, are
also preferably provided. Additionally, parties can create and
provide their own particular rules, as described above.
[0107] Where the document publication feature is implemented, the
EQC rules repository may be further organized to include categories
that are useful for that feature. Particularly where the analyzed
datasets and corresponding EQC results file are organized as an XML
based electronic documents, the rules may be organized as follows.
The five categories correspond to those introduced in the
description of the Issues Summary section of the EQC results report
described above. Namely, the first category of issues is comparison
of lender and closing agent data. These rules may be identified by
a type attribute value of "Lender/ClosingAgentInter" and appear in
the Lender/Closing Agent Data Set Differences section. An example
of the format for such rules is provided in Table 4 as follows:
TABLE-US-00004 TABLE 4 LENDER CLOSING CLOSING AGENT DOCUMENT
DATASET DOCUMENT DATASET RULE ID FAILED RULE VALUE VALUE
RULE_Identifier RULE_Name CHECKED_DATA_Display CHECKED_DATA Name
"=" DisplayName "=" CHECKED DATA_Value CHECKED DATA_Value Where
CHECKED_DATA Where CHECKED_DATA_Data DataSourceldentifier =
Sourceldentifier = "Lender" and "ClosingAgent" and
CHECKED_DATA_Data CHECKED_DATA_Data Setldentifer = SetIdentifer =
"Printed" "Printed"
[0108] The second category is errors in the lender's data set,
which may be identified by the type attribute value of
"LenderIntra" and appear in the Lender Issues For Available Data
Sets section. An example of the format for such rules is provided
in Table 5:
TABLE-US-00005 TABLE 5 LENDER LENDER CLOSING ORIGINATION DOCUMENT
DATASET SYSTEM DATASET RULE ID FAILED RULE VALUE VALUE
RULE_Identifier RULE_Name CHECKED_DATA CHECKED_DATA DisplayName "="
DisplayName "=" CHECKED_DATA_Value CHECKED_DATA_Value Where
CHECKED_DATA Where CHECKED_DATA
[0109] The third category is differences between a lender's system
and printed documents data sets. These rules are identified by a
type attribute value of "LenderDiff" and appear in the Lender Data
Set Differences section. Table 6 illustrates an example of the
format for these rules.
TABLE-US-00006 TABLE 6 LENDER CLOSING DOCUMENT DATASET LENDER
ORIGINATION DATA NAME VALUE SYSTEM DATASET VALUE CHECKED_DATA
CHECKED_DATA_Value CHECKED_DATA_Value DisplayName Where
CHECKED_DATA Where CHECKED_DATA DataSourceIdentifier = "Lender"
DataSourceIdentifier = "Lender" and CHECKED_DATA_Date and
CHECKED_DATA_Date SetIdentifer = "Printed" SetIdentifer =
"System"
[0110] The forth category is errors in the closing agent's data
set, which may be identified by a type attribute value of
"ClosingAgentIntra" and appear in the Closing Agent Data Set Issues
section. An example format for these rules is in Table 7.
TABLE-US-00007 TABLE 7 CLOSING AGENT DOCUMENT DATASET CLOSING AGENT
SYSTEM RULE ID FAILED RULE VALUE DATASET VALUE RULE_Identifier
RULE_Name CHECKED_DATA_Display CHECKED_DATA_Display Name "=" Name
"=" CHECKED_DATA_Value CHECKED_DATA_Value Where CHECKED_DATA_Data
Where CHECKED_DATA_Data SourceIdentifier = SourceIdentifier =
"ClosingAgent" and "ClosingAgent" and _DataSetIdentifer = "Printed"
_DataSetIdentifer = "System"
[0111] Lastly, the fifth category of issues is differences between
a closing agent's system and printed documents data sets. These
rules may be identified by a type attribute value of
"ClosingAgentDiff" and appear in the Closing Agent Data Set
Differences section, with a format as shown in Table 8.
TABLE-US-00008 TABLE 8 CLOSING AGENT CLOSING CLOSING AGENT DOCUMENT
ORIGINATION SYSTEM DATA NAME DATASET VALUE DATASET VALUE
CHECKED_DATA CHECKED_DATA_Value CHECKED_DATA_Value DisplayName
Where CHECKED_DATA Where CHECKED_DATA DataSourceIdentifier =
DataSourceIdentifier = "ClosingAgent" and "ClosingAgent" and
CHECKED_DATA CHECKED_DATA DataSetIdentifer = "Printed"
DataSetIdentifer = "System"
[0112] As can be seen in the values corresponding to various
datasets, the terms "System" and "Printed" are used. When used in
conjunction with the publication feature of the present invention,
the value "Printed" is an indicia that documents corresponding to
the dataset have been published, such as for usage in a closing.
Datasets retaining the value "System" are not yet published.
Notably, a user may print documents from this dataset without
causing them to be considered as published. For example, a Closing
Agent (or other user, be it a Lender, Borrower, etc.) might want to
print a copy for proofreading, to allow a client (e.g. Borrower) to
review the documents, or for any number of reasons. In this
instance, the system retains the "system" value in association with
the relevant dataset even though the documents have been printed.
Only when the documents are formally printed for usage, which is
also referred to as publishing them, is the value for the dataset
changed from "system" to "printed". Additionally, as will be seen
with regard to the publication process discussed further in
connection with FIG. 10 below, when a closing package is officially
printed (aka published) for a closing, each of the documents in the
package are versioned accordingly.
[0113] In the example provided above, there are thus four types of
datasets on the EQC system. They are "Lender System", "Lender
Printed" (aka Lender Published), "Closing Agent System", and
"Closing Agent Printed" (aka Closing Agent Published). Each of
those datasets are labeled accordingly.
[0114] The EQC rules engine 506 includes conventional facilities
for examining the database of rules and extracting the appropriate
rule set depending upon the EQC request. For example, with
reference to the rules in Table 2, certain EQC requests will
require accessing rules having a given "Rule Type"; alternatively,
with reference to Table 3, certain EQC requests will require
accessing rules pertaining to a given closing status and given
document type.
[0115] The EQC rules engine 506 thus communicates with the EQC
rules repository 510 to acquire the necessary rule sets and member
rules, for application to the data. An initial validation
preferably precedes application of the EQC specific rules to the
data, particularly where the EMD is a formal electronic document.
This initial validation will comprise a conventional (e.g., XML)
validation against a DTD for the formal electronic document,
followed by additional custom document validation to check for the
integrity of the EMD, such as whether view data matches
corresponding main data found in the EMD. Commonly owned
application Ser. No. 10/339,775 entitled "Electronic Document
Validation" provides more information about these preliminary
validation processes.
[0116] The EQC rules are then applied to the document. Whether the
EMD is an XML-only data set or a formal electronic document
containing an XML data section, the EMD will have known fields
(e.g., defined by XML elements), having corresponding values.
Conventional processing techniques are then used to identify the
presence of the elements and obtain the corresponding values where
required. Once the values are retrieved, the logical mappings are
then applied, again using conventional processing techniques. For
example, Rule ID #14 in Table 2 indicates that the deposit or
earnest money on line 201 of HUD-1 must equal the amount in the
LOS. There, the values for the relevant fields in the HUD-1 and the
LOS data are retrieved, and compared to determine that they match.
If they do not match, an instance of an error for Rule ID #14 is
maintained, so that the subsequently produced report can reflect
the mismatch. The EQC rules engine 506 preferably processes all of
the rules in the identified rule set until they have been
exhausted. Upon completion, the EQC rules engine 506 reports the
same to the EQC Results Module 508.
[0117] The EQC Results Module 508 communicates with the EQC rules
engine 506 and thus receives the list of failed rules. If no rules
have failed, then the EQC Results Module 508 prepares a report
indicating no findings, or a "pass" result pertaining to the EQC
request. If there are failed rules, then the corresponding error
messages are retrieved from the rule sets (e.g., from the
repository or the rules engine) and are compiled to provide a
report. One preferred EQC report format uses the same format as was
used for the EQC request. A viewable and/or printable report is
provided in the EQC report. The EQC report can also use the formal
electronic document standard.
[0118] Particularly where the document publication aspect of the
present invention is practiced, the results file and corresponding
report may be provided by initially checking for the appropriate
datasets, which can be accommodated by examining fields in the
datasets indicating the type and version of the dataset being
examined. In XML embodiments, this may be accommodated by examining
relevant elements, which may alone provide the dataset type and/or
version information or collectively provide such information (e.g.,
the type information may be a concatenation of values corresponding
to the source (e.g., Lender, or Closing Agent) and type (e.g.,
Origination System, Closing Document) information). This
information is used as the initial basis for determining whether
the (e.g., lender, closing agent) datasets are present for
examination, and also for populating the above described EMD
summary section (e.g., FIG. 9A, 904). The remaining functionality
is provided by applying the appropriate rules to the datasets and
issuing EQC results as described. The EQC rules and results modules
are also configured to provide the document publication
functionality that is described further below, and in connection
with providing reports with the document manifest.
[0119] The EQC system 500 can be variously embodied. The EQC system
500 can entirely comprise software that is stored in conventional
media and executed by a conventional processor to provide the above
described functionality. The EQC system 500 can also be embodied in
the form of a computer system having such as processor and storing
such software for execution. These and other alternatives will be
recognized by the artisan.
[0120] The EQC System can be invoked pursuant to various
transactions. The schematic diagram of FIG. 7 provides an overview
of various examples of transactions in the life cycle of an
electronic mortgage document. Participants in the illustrated
process include the lender 702, closing agent 704, recorder 706,
servicing agent 708, investor 710, and custodial services 712.
Where electronic documents are being handled, these parties 702-712
can variously communicate over a computer network to effect a
mortgage transaction utilizing the certified electronic mortgage
document, such as those previously described between the lender,
certifying agent, and investor. Additionally, before or after these
mortgage transactions, the EQC system provides EQC results
corresponding to EQC requests as described above. This includes
"downstream" transactions that occur after the closing.
[0121] As described above, loan documents are prepared 720, such as
via a lender's loan origination system (LOS), and the electronic
mortgage document can reside on the LOS or can be uploaded from a
document preparer located at a remote location via the computer
network. The closing agent 704 receives closing instructions from
the lender and the closing documents. Closing package creation 722
can be centralized so that the lender 702 and closing agent 704 can
provide the necessary closing data and electronic documents to
complete a closing package. Additionally, the closing agent 704 can
invoke information provided by the lender 702, and vice versa.
[0122] Upon completion of the closing package, a closing 724
involving a traditional ink and pen signing, or digital signing, of
relevant documents including the paper mortgage note follows, with
the borrower signing the necessary documents. Recording 706 of the
executed documents can then proceed, with the recordable documents
being sent for recordation, and corresponding indicia of what is
recorded.
[0123] Also indicated is post closing quality assurance 726, which
is provided by the EQC system. Example participants include the
servicing agent 708, investor 710 and custodial services 712. Use
of the EQC system ensures and confirms that data is consistently
implemented for all of the different documents pertaining to the
loan, and provides additional quality control aspects as dictated
by the rule set. According to this aspect, in addition to applying
a first rule set (e.g., for the lender pursuant to a closing) to an
EMD corresponding to a closing package, the EQC system receives a
second electronic data set for a related function. One example of a
related function is that provided by the closing agent, as
described above. Other examples of related functions are those
provided by the servicing agent, appraiser, and other entities. The
EQC system receives the second EMD and applies a second set of
quality control rules to the second EMD. Results of this process
can be iterative, depending upon satisfaction of the rules, and
ultimately will result in an EQC pass result after corrections are
made. Here, positive EQC results indicate the second EMD is
consistent with the first EMD and appropriate for the function,
which again is dictated by rules that can be submitted by the
service provider, or combinations of parties. For example, the
servicing package that is implemented by the servicing agent 708 is
subject to an EQC check following the closing and prior to the
exchange. Here, the data in the servicing agent system is submitted
to the EQC system to ensure that it is consistent with data that
was previously used for the loan pursuant to the closing, and to
ensure compliance with any other rules, including those defined by
the servicing agent. The servicing agent data for the closing note,
deed of trust, assignment, first payment letter, hazard insurance
and tax information sheets is among that which is compared to the
existing data by the EQC system. This process uses the same type of
comparison of field values as described above.
[0124] Similarly, as described above in more detail, the investor
710 implements the EQC system in connection with receipt of the
delivery package for the loan. Additionally, in connection with the
loan being held by the document custodian, wherein the signed
closing package and paper documents are provided, the content of
the documents can be verified using the EQC system.
[0125] FIG. 10 is a flow diagram illustrating an embodiment of a
process 1000 for publishing documents. The above-described document
manifest and related features are useful for transactions such as
the publication of documents pursuant to a closing, as the manifest
allows the opportunity for users to check the list of documents and
corresponding version to ensure inclusion of the appropriate
documents, as well as the correct versions of those documents. The
above-described usage of an indicator on paper mortgage documents
that ties the paper document to an electronic dataset as well as
the corresponding EQC result for that dataset is also useful for
implementing this process 1000. The indicator may be variously
provided, such as in the form of a string field created by document
providers. Preferably, representation of the document package
version number will be supported by this field. In one embodiment,
all of the documents in the Document Manifest will have the version
number associated with the last valid published version of the
document package. Specifically, the version number is associated
with the package of documents rather than individual documents
within the listing. Thus, "Closing Package Version 1" will be
initially published. If there is a later change to any single
document within that package for which a new versioning is sought,
then all of the documents in the package will be associated with
"Closing Package Version 2". When all of the documents are printed
for publication, they will thus include the same version number for
the closing package, rather than having separate version numbers
belonging to each individual document. This allows easy
determination that the elements of the closing package are
up-to-date.
[0126] Of course, although it is not necessarily recommended, there
may be instances where users elect not to print to the entire
package for closing package version 2. In that case, it is up to
the user to determine which documents did not change between the
two versions.
[0127] For context, the illustrated process 1000 shows origination
and closing phases. As described, origination is variously provided
by conventional systems that are used to populate documents (1002).
This may be accommodated through an Automated Underwriting System
(AUS) as indicated or other conventional systems used for
origination that need not be described in detail herein.
[0128] Pursuant to a closing, at various times and for various
purposes, parties may wish to view documents before the formal
closing takes place. For example a Lender, Closing Agent or
Borrower might wish to review data that is included on the
documents to ensure accuracy, to make changes that occur between
the original population of the document and the closing, etc. The
"closing" process 1010 is divided into publish 1020 and view 1060
components.
[0129] Notably, documents may be printed for review as part of the
view 1060 component. This is in contrast to publishing the
documents, such as in anticipation of the formal closing. Printing
1062 the documents can be accommodated from a selection list that
is displayed in connection with a displayed document, or within the
document if desired. Preferably, when the documents are printed
1062 during the view component 1060, they will include indicia such
as "DRAFT" in lieu of a version number, to clearly indicate that
they are not a published version of the documents.
[0130] As described above, datasets that are used to produce
documents are accorded values useful in connection with receiving
EQC requests and producing corresponding EQC results and reports.
Document publication is also provided in conjunction with the EQC
system functionality. To accommodate that, datasets (or even
individual elements within datasets) may be accorded the values
"System" and "Printed". When drafts of the documents are printed
for review, rather than published, the corresponding dataset will
remain denoted as "System". The EQC system functionality described
above may thus be applied 1064 to a dataset marked as System during
the view 1060 phase of the closing process. This allows users to
check data integrity and accuracy on the underlying (e.g., Closing
Agent) dataset prior to requesting a publication of the
documents.
[0131] Publication 1020 of the documents is accommodated in
conjunction with the other EQC system features. According to one
aspect, the EQC system distinguishes datasets corresponding to
published document sets from those that have not yet been
published, by associating a "Printed" value with the former. As
indicated, when publication 1020 is sought, the documents in a
closing package are printed 1024. If necessary, the dataset
corresponding to the printed documents is also uploaded to the EQC
system, if it does not already reside therein Uploading may or may
not be necessary at this stage. This is because some users may use
a system that includes the EQC system functionality throughout the
process of managing a transaction (e.g., from origination forward).
In that instance the datasets will already reside on the EQC
system. Other users will invoke the EQC system at this stage,
wherein the dataset may be uploaded in conjunction with
publication. In either case, the EQC system is used to check the
accuracy and completeness of the data used to produce the documents
published for the closing package. As indicated, the EQC system
functionality is applied 1026 to the corresponding dataset marked
as "Printed". Although the described embodiment uses the term
"Printed" in association with datasets corresponding to published
documents, the artisan may substitute whatever terms are desired
for this indication, including but not limited to "Published",
etc.
[0132] As conceptually indicated in FIG. 10, versioning 1022 is
associated with the publication 1020 of documents. According to
another aspect of the present invention, versioning is correlated
with a set of documents used for a transaction, such as a closing
package. The first publication of the closing package may be
referred to as "Closing Package Version 1". Preferably, each of the
documents that is published as part of the closing package is
marked accordingly with this version number. For example, a footer
for each document may state "CP v. 1" or the like. Accordingly,
whenever a new publication 1020 request is made, the system reviews
the version counter 1022, and prompts an increment in the version
count to be associated with the set of documents being published in
connection with the publication request. In embodiments that store
a version number as an element value, this may merely be
incrementing this value in association with publication.
[0133] If, following a publication, there is a realization that
change is desired in one or more of the documents, then values in
the datasets may be changed. In this instance, the user will
presumably want to run another EQC system check to ensure the
accuracy and consistency of and among datasets. This is done in
conjunction with publication and versioning according to this
embodiment of the present invention. First, the user makes the
changes to the datasets. When these changes are made, the
corresponding dataset and/or individual values are denoted as
System, as they lose publication status as being different from the
published version. At some point the user will again be satisfied
with the data, and will prompt publication. In this instance,
"Closing Package Version 2" is established as the next version
number for the closing package. The previously described printing
1024 of the closing package documents, marking of the datasets as
published, and application 1026 of the EQC functionality to the
datasets marked as published take place. Versioning is associated
with the entire closing package. Thus, even if some of the
documents remain exactly the same from version-to-version, they
will be marked according to the most recent closing package version
in association with publication of the closing package. In other
words, if version 2 of the closing package is printed, each
document in the package is marked "CP v. 2" or the like.
[0134] In some embodiments, a formal electronic document, such as
an XML or XHTML based document, may be used in conjunction with the
document manifest and/or publication aspects of the present
invention. In that case, a particular element for managing document
publication may be established. The element is used to provide the
listing of published (formally printed) documents prepared for use
in a transaction such as a closing. Preferably, this listing is
accessed and used in conjunction with the above-described
validation processes as part of managing the list of documents to
be provided for a closing package and ensuring that those documents
are checked for accuracy and completeness. The element for managing
document publication may be variously provided but preferably
includes attributes such as "name" for indicating the name of each
document and "version number" for managing the versioning of
documents. Other useful attributes may include a "filename"
attribute for identifying a location of a file corresponding to a
particular document, "date/time" for indicating a date/time stamp
corresponding to a document version, "type" for indicating the
document type, "pages_number" for indicating the number of pages in
the document, "signature requirements" for indicating whether and
how documents are to be signed, and "comments" for indicating
various associated comments or instructions. The values of these
attributes are useful for assembling the above described listing of
documents for a package, along with the related information, for
the document manifest.
[0135] Although the present invention has been described in
considerable detail with reference to certain embodiments thereof,
the invention may be variously embodied without departing from the
spirit or scope of the invention. Therefore, the following claims
should not be limited to the description of the embodiments
contained herein in any way.
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