U.S. patent application number 14/313021 was filed with the patent office on 2014-10-30 for mortgage matching system and method.
The applicant listed for this patent is JPMorgan Chase Bank, N.A.. Invention is credited to George Black, David A. Clifton, Lesley R. Corydon, Panickos Palettas, Jay Roth, Pat Sheehy, Julie Shuttlesworth, Elaine Wistar.
Application Number | 20140324559 14/313021 |
Document ID | / |
Family ID | 46513140 |
Filed Date | 2014-10-30 |
United States Patent
Application |
20140324559 |
Kind Code |
A1 |
Sheehy; Pat ; et
al. |
October 30, 2014 |
Mortgage Matching System and Method
Abstract
A computer-implemented method is disclosed for rewarding
mortgage customers of a financial institution with a reward payment
amount. The method includes providing enrollment in a mortgage
matching system to eligible mortgage customers, wherein eligibility
requirements include the requirement that eligible mortgage
customers hold both a mortgage account and a checking account with
the financial institution. The method additionally includes
enabling the customer to make periodic mortgage payments from the
checking account to the mortgage account and monitoring continued
compliance with the eligibility requirements and submission of the
periodic payments using a monitoring engine implemented by at least
one computer processor. The method further includes determining a
reward payment amount to be made by the financial institution to
each complying mortgage customer using a fulfillment engine
implemented by the at least one computer processor, wherein the
reward payment amount is a predetermined percentage of principal
and interest paid by each complying mortgage customer during a
predetermined time period. The method further includes transferring
the calculated reward payment amount to a pre-selected location for
each complying mortgage customer, wherein the pre-selected location
is accessible to the corresponding complying mortgage customer.
Inventors: |
Sheehy; Pat; (Alexandria,
VA) ; Corydon; Lesley R.; (Fair Haven, NJ) ;
Clifton; David A.; (Westerville, OH) ; Black;
George; (Powell, OH) ; Roth; Jay; (Scottsdale,
AZ) ; Palettas; Panickos; (Dublin, OH) ;
Wistar; Elaine; (Ambler, PA) ; Shuttlesworth;
Julie; (Jacksonville, FL) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
JPMorgan Chase Bank, N.A. |
New York |
NY |
US |
|
|
Family ID: |
46513140 |
Appl. No.: |
14/313021 |
Filed: |
June 24, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13740331 |
Jan 14, 2013 |
8799155 |
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14313021 |
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13537636 |
Jun 29, 2012 |
8392327 |
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13740331 |
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12503609 |
Jul 15, 2009 |
8229846 |
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13537636 |
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61222178 |
Jul 1, 2009 |
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Current U.S.
Class: |
705/14.17 |
Current CPC
Class: |
G06Q 30/0233 20130101;
G06Q 40/02 20130101; G06Q 20/10 20130101; G06Q 40/00 20130101; G06Q
50/16 20130101; G06Q 30/0215 20130101; G06Q 30/02 20130101 |
Class at
Publication: |
705/14.17 |
International
Class: |
G06Q 30/02 20060101
G06Q030/02 |
Claims
1-32. (canceled)
33. A computer-implemented method for implementing a mortgage
matching program for rewarding mortgage customers of a financial
institution with a reward payment amount, the method comprising:
providing access to a mortgage matching computing system linked to
financial institution account processing systems, the mortgage
matching computing system including at least one computer processor
and at least one computer memory storing eligibility rules,
compliance rules, and rewards calculation rules; providing an
interface enabling customer computing systems to communicate over a
network with the mortgage matching computing system and the
financial institution account processing systems; implementing the
computer processor of the mortgage matching computing system to
execute instructions in order to perform steps responsive to
customer inquiries over the network, the steps including:
determining customer eligibility for the mortgage matching program
by applying the stored eligibility rules to retrieved customer
records from the financial institution account processing systems,
wherein the eligibility rules include a requirement that eligible
mortgage customers hold at least one mortgage account and at least
one additional account with the financial institution and that each
monthly mortgage payment be paid from the additional account;
enrolling eligible mortgage customers in the mortgage matching
program; monitoring continued compliance with eligibility
requirements by applying the stored compliance rules to the
customer record and terminating enrollment of non-compliant
mortgage customers in the rewards program; determining the reward
payment amount to be made by the financial institution to each
complying mortgage customer enrolled in the mortgage matching
program using a fulfillment engine implemented by the at least one
computer processor, wherein determining the reward payment amount
includes calculating the reward payment amount by applying the
stored reward calculation rules to each complying customer account,
wherein the reward calculation rules specify calculation based on a
percentage of mortgage principal and interest paid by the complying
mortgage customer during a predetermined time period; transferring
the calculated reward payment amount to a pre-selected location for
each complying mortgage customer, wherein the pre-selected location
is accessible to the corresponding complying mortgage customer.
34. The method of claim 33, wherein calculating the reward payment
amount includes determining a number of mortgage accounts held by a
compliant mortgage customer and adjusting the percentage based on
the number of mortgage accounts.
35. The method of claim 33, wherein calculating the reward payment
amount includes determining a number or type of additional
accounts, and adjusting the reward payment amount based on the
number or type of additional accounts.
36. The method of claim 33, wherein calculating the reward payment
amount includes determining a balance of the additional account and
adjusting the percentage based on the balance.
37. The method of claim 33, further comprising providing the
customer with multiple selectable locations for depositing the
calculated reward payment amount to allow the customer to
pre-select a location.
38. The method of claim 37, wherein the multiple selectable
locations comprise at least two of the mortgage account, a home
equity account, a credit account, an investment account and a
checking account, and a savings account
39. The method of claim 33, further comprising enrolling the
customer in an auto-payment system for making regular periodic
mortgage payments.
40. The method of claim 33, wherein the pre-selected location is
the customer mortgage account.
41. The method of claim 33, wherein the pre-selected location is
the additional account.
42. The method of claim 33, wherein the predetermined percentage is
one percent and is calculated over a twelve month period.
43. The method of claim 33, wherein the additional account includes
one of a checking account, a savings account, an investment
account, a premier account, and a platinum account.
44. The method of claim 33, further comprising imposing an annual
cap on rewards and adjusting annual cap based on the types of
accounts linked to the system.
45. The method of claim 33, wherein the mortgage customer has a
home equity account in addition to the mortgage account and the
eligible mortgage customer makes periodic payments from the
additional account to the home equity account, wherein the reward
payment amount is based on the payments to the home equity
account.
46. The method of claim 33, wherein the eligible mortgage customer
has at least one additional account with the financial institution
and calculating the reward payment amount includes increasing the
percentage because of the existence of the additional account.
47. The method of claim 33, further comprising transferring the
rewards to a credit card rewards program.
48. A computer-implemented system for implementing a mortgage
matching program for rewarding mortgage customers of a financial
institution with a reward payment amount, the system comprising: a
mortgage matching computing system linked to financial institution
account processing systems, the mortgage matching computing system
including at least one computer processor and at least one computer
memory storing eligibility rules, compliance rules, and rewards
calculation rules; and an interface enabling customer computing
systems to communicate over a network with the mortgage matching
computing system and the financial institution account processing
systems, wherein the computer processor of the mortgage matching
computing system executes instructions in order to perform steps
responsive to customer inquiries over the network, the steps
including: determining customer eligibility for the mortgage
matching program by applying the stored eligibility rules to
retrieved customer records from the financial institution account
processing systems, wherein the eligibility rules include a
requirement that eligible mortgage customers hold at least one
mortgage account and at least one additional account with the
financial institution and that each monthly mortgage payment be
paid from the additional account; enrolling eligible mortgage
customers in the mortgage matching program; monitoring continued
compliance with eligibility requirements by applying the stored
compliance rules to the customer record and terminating enrollment
of non-compliant mortgage customers in the rewards program;
determining the reward payment amount to be made by the financial
institution to each complying mortgage customer enrolled in the
mortgage matching program using a fulfillment engine implemented by
the at least one computer processor, wherein determining the reward
payment amount includes calculating the reward payment amount by
applying the stored reward calculation rules to each complying
customer account, wherein the reward calculation rules specify
calculation based on a percentage of mortgage principal and
interest paid by the complying mortgage customer during a
predetermined time period; transferring the calculated reward
payment amount to a pre-selected location for each complying
mortgage customer, wherein the pre-selected location is accessible
to the corresponding complying mortgage customer.
49. The system of claim 48, wherein calculating the reward payment
amount includes determining a number of mortgage accounts held by a
compliant mortgage customer and adjusting the percentage based on
the number of mortgage accounts.
50. The system of claim 48, wherein calculating the reward payment
amount includes determining a number or type of additional
accounts, and adjusting the reward payment amount based on the
number or type of additional accounts.
51. The system of claim 48, wherein calculating the reward payment
amount includes determining a balance of the additional account and
adjusting the percentage based on the balance.
52. The system of claim 48, further comprising an interface
providing the customer with multiple selectable locations for
depositing the calculated reward payment amount to allow the
customer to pre-select a location.
53. The system of claim 52, wherein the multiple selectable
locations comprise at least two of the mortgage account, a home
equity account, a credit account, an investment account and a
checking account, and a savings account
54. The system of claim 48, further comprising enrolling the
customer in an auto-payment system for making regular periodic
mortgage payments.
55. The system of claim 48, wherein the pre-selected location is
the customer mortgage account.
56. The system of claim 48, wherein the pre-selected location is
the additional account.
57. The system of claim 48, wherein the predetermined percentage is
one percent and is calculated over a twelve month period.
58. The system of claim 48, wherein the additional account includes
one of a checking account, a savings account, an investment
account, a premier account, and a platinum account.
59. The system of claim 48, further comprising imposing an annual
cap on rewards and adjusting annual cap based on the types of
accounts linked to the system.
60. The system of claim 48, wherein the mortgage customer has a
home equity account in addition to the mortgage account and the
eligible mortgage customer makes periodic payments from the
additional account to the home equity account, wherein the reward
payment amount is based on the payments to the home equity
account.
61. The method of claim 48, wherein the eligible mortgage customer
has at least one additional account with the financial institution
and calculating the reward payment amount includes increasing the
percentage because of the existence of the additional account.
62. The system of claim 48, further comprising transferring the
rewards to a credit card rewards program.
Description
TECHNICAL FIELD
[0001] Embodiments of the invention are related systems and methods
for increasing mortgage customer loyalty and in particular to
methods for benefiting mortgage customers while simultaneously
cross-marketing financial services products.
BACKGROUND OF THE INVENTION
[0002] Mortgage financing has evolved over recent years to become
increasingly complex and confusing to borrowers with the
proliferation of options for loan configuration. For lenders,
mortgage financing has become increasingly competitive, with
borrowers receiving frequent offers to refinance under ostensibly
more favorable terms. Thus, mortgage refinancing occurs frequently
and customer loyalty to mortgage financers has been minimal.
[0003] In general, financial institutions have devised various
mechanisms for promoting customer loyalty. For example, rewards
programs have become increasingly associated with credit cards and
consumers often favor one credit card over another because of the
associated rewards generated with each purchase.
[0004] Some card issuers have sought to employ rebates in order to
increase use of credit cards. Credit card rebate systems have
evolved that provide a rebate tied to general card usage. The
entire benefit is enjoyed by consumers who receive a check or
credit on their account. However, such credit card rebate systems
provide no particular long-term benefits to the cardholder or the
card issuer--especially benefits that relate to the card issuer's
business. There is limited loyalty-building to encourage
cardholders to maintain their existing accounts or open new ones.
Moreover, because the rebate is sent directly to the consumer, who
can spend it as he/she pleases, there is no mechanism to encourage
the consumer to consider other financial products offered by the
card issuer or associated financial companies. Nor is there a way
to channel funds back to the card issuer to expand business and
cross-sell. This is a lost opportunity and significant
disadvantage.
[0005] Other institutions have suggested credit card systems that
transfer a predetermined amount of money to an investment account
periodically and bill the cardholder through the credit card
account. For example, various systems provide a credit card in
combination with a rebate that is also transferred to the
investment account.
[0006] Often, rewards programs are made more attractive through
joint ventures with partners of the card issuers. For example,
airlines may provide miles for credit card usage or partnering
merchants may provide extra rewards points for purchases
[0007] Currently, a solution is needed for providing benefits to
mortgage customers and potential mortgage customers in order to
enhance customer loyalty.
SUMMARY OF THE INVENTION
[0008] In one aspect of the invention, a computer-implemented
method is provided for rewarding mortgage customers of a financial
institution with a reward payment amount. The method comprises
providing enrollment in a mortgage matching system to eligible
mortgage customers, wherein eligibility requirements include the
requirement that eligible mortgage customers hold both a mortgage
account and a checking account with the financial institution. The
method additionally comprises enabling the customer to make
periodic mortgage payments from the checking account to the
mortgage account and monitoring for continued compliance with the
eligibility requirements and submission of the periodic payments
using a monitoring engine implemented by at least one computer
processor. The method additionally comprises determining a reward
payment amount to be made by the financial institution to each
complying mortgage customer using a fulfillment engine implemented
by the at least one computer processor, wherein the reward payment
amount is a predetermined percentage of principal and interest paid
by each complying mortgage customer during a predetermined time
period. The method additionally comprises transferring the
calculated reward payment amount to a pre-selected location for
each complying mortgage customer, wherein the pre-selected location
is accessible to the corresponding complying mortgage customer.
[0009] In an additional aspect of the invention, a
computer-implemented system is provided for rewarding mortgage
customers of a financial institution with a reward payment amount.
The system comprises an enrollment engine for enrolling eligible
mortgage customers in a mortgage matching system, wherein
eligibility requirements include the requirement that eligible
mortgage customers hold both a mortgage account and a checking
account with the financial institution and make periodic payments
from the checking account to the mortgage account. The system
additionally includes a monitoring engine for monitoring continued
compliance with the eligibility requirements and submission of the
periodic payments, the monitoring engine implemented by at least
one computer processor. The system additionally includes a
fulfillment engine implemented by the at least one computer
processor, the fulfillment engine comprising: calculation
components for determining a reward payment amount to be made by
the financial institution to each complying mortgage customer,
wherein the reward payment amount is a predetermined percentage of
principal and interest paid by each complying mortgage customer
during a predetermined time period. The fulfillment engine
additionally includes reward transfer components for transferring
the calculated reward payment amount to a pre-selected location for
each complying mortgage customer, wherein the pre-selected location
is accessible to the corresponding complying mortgage customer.
[0010] In an additional aspect of the invention, a
computer-implemented method is provided for rewarding mortgage
customers of a financial institution with a reward payment amount.
The method comprises providing enrollment in a mortgage matching
system to eligible mortgage customers, wherein eligibility
requirements include the requirement that eligible mortgage
customers hold both a mortgage account and a checking account with
the financial institution. The method further comprises enabling
the customer to automatically make periodic mortgage payments from
the checking account to the mortgage account and monitoring
continued compliance with the eligibility requirements and
automatic submission of the periodic payments using a monitoring
engine implemented by at least one computer processor. The method
additionally includes determining a reward payment amount to be
made by the financial institution to each complying mortgage
customer using a fulfillment engine implemented by the at least one
computer processor, wherein the reward payment amount is a
predetermined percentage of principal and interest paid by each
complying mortgage customer through the auto-payment system during
a predetermined time period. The method additionally includes
transferring the calculated reward payment amount to the mortgage
account for each complying mortgage customer. Embodiments of the
method additionally include processing a refinance application for
at least one complying mortgage customer to provide a new mortgage
loan for the complying mortgage customer and calculating accrued
rewards using a refinancing engine implementing a refinancing
processor prior to closing on the refinance application. The method
additionally includes reducing a payoff amount by the calculated
accrued rewards or crediting the calculated accrued rewards to an
account held at the financial institution and enrolling the new
mortgage loan in the mortgage matching system.
BRIEF DESCRIPTION OF THE DRAWINGS
[0011] The present invention is described in detail below with
reference to the attached drawings figures, wherein:
[0012] FIG. 1 is a block diagram illustrating an operating
environment for mortgage matching system in accordance with an
embodiment of the invention;
[0013] FIG. 2 is a block diagram illustrating components of a
mortgage matching system in accordance with an embodiment of the
invention;
[0014] FIG. 3 is a block diagram illustrating a computer system
implementing a mortgage matching system in accordance with an
embodiment of the invention;
[0015] FIG. 4 is a flow chart illustrating a mortgage matching
process in accordance with an embodiment of the invention;
[0016] FIG. 5 is a flow chart illustrating an enrollment method of
the mortgage matching system in accordance with an embodiment of
the invention;
[0017] FIG. 6 is a flow chart illustrating a closing method of the
mortgage matching system in accordance with an embodiment of the
invention;
[0018] FIG. 7 is a flow chart illustrating a monitoring method of
the mortgage matching system in accordance with an embodiment of
the invention;
[0019] FIG. 8 is a flow chart illustrating a fulfillment method of
the mortgage matching system in accordance with an embodiment of
the invention;
[0020] FIG. 9 is a flow chart illustrating a method for
implementing selectable options in the mortgage matching system in
accordance with an embodiment of the invention; and
[0021] FIG. 10 is a flow chart illustrating operation of refinance
components in the mortgage matching system in accordance with an
embodiment of the invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
[0022] Embodiments of the present invention are directed to a
method and system for financial institutions to reward mortgage
customers complying with certain predetermined conditions. Regular
payment of a mortgage in combination with maintenance of another
account at the financial institution will result in a reward being
generated for the customer. In embodiments of the invention, the
system enables accelerated payment of the mortgage through
contributions made by the financial institution if customers meet
the predetermined conditions. Thus, customers meeting the
predetermined conditions will be able to more quickly pay off their
mortgages through financial institution contribution.
[0023] FIG. 1 is a block diagram illustrating an operating
environment for mortgage matching system in accordance with an
embodiment of the invention. A financial institution 100 may be
connected over a network 10 with multiple customer systems 20a . .
. 20n.
[0024] The financial institution 100 may have multiple financial
institution computing systems 110. Computing systems 110 may be
interconnected with a mortgage matching system 200, which will be
further described herein, and with databases 102, 104 and with
accounts 120a . . . 120n. The accounts 120a . . . 120n may include
various types of accounts, such as checking accounts, credit
accounts, savings accounts, mortgage accounts, investment accounts,
etc. Embodiments of the invention link the mortgage matching system
200 with a mortgage account and a checking account of the financial
institution. However, additional embodiments may incorporate other
of the aforementioned account types. The above-described components
may be connected over a network.
[0025] The network 10 as well as networks contained within the
financial institution 100 may include a wired or wireless local
area network (LAN) and a wide area network (WAN), wireless personal
area network (PAN) and other types of networks. When used in a LAN
networking environment, computers may be connected to the LAN
through a network interface or adapter. When used in a WAN
networking environment, computers typically include a modem or
other communication mechanism. Modems may be internal or external,
and may be connected to the system bus via the user-input
interface, or other appropriate mechanism. Computers may be
connected over the Internet, an Intranet, Extranet, Ethernet, or
any other system that provides communications. Some suitable
communications protocols may include TCP/IP, UDP, or OSI for
example. For wireless communications, communications protocols may
include Bluetooth, Zigbee, IrDa or other suitable protocol.
Furthermore, components of the system may communicate through a
combination of wired or wireless paths.
[0026] Customer systems 20a . . . 20n may be personal computing
systems or any other type of system capable of connecting over the
network 10 with the financial institution 100.
[0027] FIG. 2 is a block diagram illustrating components of a
mortgage matching system 200 in accordance with an embodiment of
the invention. The mortgage matching system 200 may include an
enrollment engine 210, closing components 220, reporting components
230, monitoring engine 240, fulfillment engine 250, exception
handler 260, refinance components 270, and program selection
components 280. These components may include software and/or
hardware. Software components are implemented by one or more
financial institution processors in order to execute the methods
described herein.
[0028] The mortgage matching system 200 may additionally include
databases such as a mortgage match records database 290 and a
mortgage match rules database 292. As will be further described
below, these databases 290 and 292 are accessible to the other
components of the system so that data and rules may be retrieved
when needed as well as stored and revised when appropriate.
[0029] While the components of FIG. 2 are shown as discrete
components, they may be provided or developed in various
combinations of the illustrated components or alternatively, the
displayed components may be divided into multiple components.
Furthermore, the components of FIG. 2 may all be interconnected for
processing. The components may, for example, be connected over one
or more networks or may exist as software modules executed by one
or more computer processors.
[0030] The enrollment engine 210 may be used to enroll eligible
customers in the mortgage matching system. Enrollment may occur,
for example, at a financial institution branch, over the telephone,
or through a computing device. The enrollment engine 210 determines
eligibility for customers obtaining a new mortgage. Predetermined
eligibility conditions may, for example, require new enrollees in
the mortgage matching system to be new mortgage customers of the
financial institution and to hold or establish a checking account
with the financial institution. The predetermined conditions may
for example require new enrollees in the mortgage matching system
to be new mortgage customers of the financial institution although
in some instances, retroactive enrollment may be enabled. Program
participants may be required to set up the checking account prior
to closing on the mortgage or alternatively at least prior to
making a first mortgage payment. The conditions may additionally
require that the enrollees make mortgage payments directly from the
checking account in order to participate in the mortgage matching
program. Furthermore, in embodiments of the invention, customers
may be required to set up ACH auto-payment from the checking
account to the mortgage account.
[0031] If the enrollment engine 210 determines that customers are
eligible for enrollment and approves the application for
enrollment, the system may generate a unique electronic coupon code
that will be accessible to be utilized through enrollment, closing,
and participation in the program for account identification
purposes. Additionally, the enrollment components may create a file
of enrolled customers for storage, such as in the mortgage match
records database 290.
[0032] The closing components 220 operate to close on the mortgage.
The closing components 220 in the mortgage matching environment may
require that pre-conditions be met prior to closing on the loan. In
embodiments of the invention, the opening of a checking account at
the financial institution by the mortgage customer is required
prior to proceeding on closing the eligible loan.
[0033] The reporting components 230 may operate through various
phases of the mortgage matching system 200. For example, the
closing components 230 may operate to welcome a new customer after
closing of a loan, send informational materials, and forward
periodic statements, such as monthly, quarterly, or yearly
statements. The reporting components 230 may generate the required
communications and may deliver them electronically or schedule them
to be delivered by manual methods. Thus, reporting components 230
of the mortgage matching system 200 keep participants informed
regarding compliance issues, earned rewards that will be paid by
the financial institution, and rewards that have already been paid
by the financial institution. In one preferred embodiment, the
rewards are paid in order to reduce outstanding principal and the
reports indicate the principal reduction.
[0034] After enrollment, the mortgage matching system 200 activates
monitoring engine 240 to ensure continued compliance with the
predetermined conditions prior to allowing a reward to be
distributed. The monitoring engine 240 confirms continued
compliance with eligibility requirements and pre-conditions. For
example, the monitoring engine 240 may validate continued existence
of a checking account and the continued use of the checking account
to make periodic mortgage payments. In embodiments of the invention
in which automatic payment is required, the monitoring engine 240
may periodically confirm the customer's selection of automatic ACH
payments. Upon verifying compliance, the first reward payment may,
for example be made after one full year of payments have been by
the program participant. If non-compliance or partial
non-compliance is detected, the program may be interrupted or
terminated. Thus, any disruption in compliance, such as termination
of automatic mortgage payments, termination of the checking account
or more than one late payment throughout the program, may nullify
the customer's participation in the mortgage matching system and no
reward will then be generated.
[0035] Once compliance has been verified, the fulfillment engine
250 may implement reward determination/calculation components to
calculate an accrued reward. The fulfillment engine 250 may further
be implemented in order to transfer the accrued reward to the
mortgage account or to another pre-selected location, as will be
further explained below. Verification of the active checking
account will occur prior to issuance of the annual reward.
[0036] The fulfillment engine 250 determines the reward payment to
be transferred to complying customers and may include funds
transfer components for transferring the calculated rewards to the
customer mortgage account. In embodiments of the invention, the
fulfillment engine 250 may also transfer the calculated reward to
an alternative location of the customer's choosing. The calculated
reward is due from the financial institution to the customer and
does not merely redistribute the customer's own financial
resources. In embodiments of the invention, operation of the
fulfillment engine 250 is triggered after twelve months of customer
participation in the mortgage matching program. Other time periods
may also be utilized and are considered to be within the scope of
the invention.
[0037] In embodiments of the invention, the fulfillment engine 250
calculates one (1) % of one month's scheduled monthly principal and
interest (P&I) payment of the new mortgage and totals over a
twelve (12) month period. The 1% principal reduction calculation
will typically apply to scheduled principal and interest payments
only. The calculated amount would typically not apply to additional
principal payments made by the borrower or to payments for escrowed
items such as taxes and insurance. In one preferred embodiment in
which the calculated reward is applied to principal reduction, the
principal reduction in the first and last years of the mortgage
period may be based on the number of monthly payments in that year.
All other anniversary principal reductions may be calculated and
totaled over the prior 12 month period. The sum may be applied to
the outstanding principal balance each year on or about the
anniversary date of the loan origination. In embodiments of the
invention, a cap may be placed on the reduction of principal. For
example, an annual cap, such as a $500 annual cap may be placed on
the reduction of principal.
[0038] In other embodiments of the invention, the fulfillment
engine 250 may calculate a reward based on an ARM. Thus, each time
the ARM adjusts, the total monthly P&I payment will also
adjust. The fulfillment engine 250 may calculate this adjustment
based on a new balance that incorporates the earned rewards.
[0039] In additional embodiments of the invention, a customer may
have multiple mortgage accounts or a home equity account in
addition to a mortgage account. In this instance, an embodiment of
the invention allows selection of one account for earning rewards.
However the fulfillment engine 250 may apply a higher percentage of
the P&I payment for the rewards. For example, rewards may be
equal to 1.5% of the P&I payment for the selected mortgage.
[0040] Furthermore, as set forth above, an annual cap may be placed
on reduction of principal. However, this annual cap may vary based
on the type of account linked to the mortgage matching system or
the average monthly or yearly balance maintained in the account.
For example, the system may be linked to a regular checking
account, an investment account, a premier account, or a platinum
account. The type of account may be determinative of the yearly
rewards cap.
[0041] The exception handler 260 may be triggered upon detection of
non-compliance by the monitoring engine 240. The exception handler
260 may also be triggered by other components of the system as
necessary. For example the exception handler 260 may handle
problems resulting from the enrollment process such as lost or
misplaced coupon codes, ACH payment setup problems and delays, etc.
The exception handler 260 may void enrollment if a payment has been
missed or delayed. The exception handler 260 may be configured to
void enrollment based on a single missed payment, multiple missed
payments, or one or more late payments. Alternatively, the
exception handler 260 may take other actions, such as prompting
action from the reporting components 230 to issue warnings or other
communications.
[0042] In embodiments of the invention, if the exception handler
260 detects any disruption in enrollment of automatic mortgage
payments, the checking account or more than one late payment
throughout the program, enrollment will be nullified. Further, the
exception handler 260 may refer the account to servicing to assess
a late payment fee if a payment received thirty (30) days or any
other set number of days after the payment due date.
[0043] Refinance components 270 may operate to determine benefits
in the event that an enrolled customer obtains a mortgage
refinance. The refinance components 270 determine whether the
customer is eligible to continue with the program and the amount of
reward or benefit that will be transferred to the customer.
[0044] The program selection components 280 may be implemented in
embodiments of the invention to provide a user interface with
selectable options for the destination of the calculated reward.
For example, while the reward may be utilized to pre-pay the
customer's mortgage, embodiments of the invention may also allow a
user to select an alternative destination for the reward, such as a
checking account, a savings account, a home equity account, a
credit account, or an investment account. Embodiments of the
invention may also allow the user to transfer the reward to a
credit card rewards program. This option may be implemented, for
instance, when the user holds a credit card from the financial
institution and the credit card implements a rewards feature. The
rewards may also be transferred to an overall rewards program, such
that all rewards from the financial institution are combined, and
may be implemented by the user in any manner allowed by the
financial institution. In addition to selecting payment of debts or
credit card rewards, a plan participant could also donate the
rewards to a charitable or non-profit organization.
[0045] The mortgage match records database 290 may include
information related to enrolled customers and enrolled customer
accounts. Furthermore, during the course of customer enrollment,
payment data, rewards data, and any additional data required for
utilization by the mortgage matching system 200 may be stored in
and retrieved from the records database 290.
[0046] The mortgage match rules database 292 may be provided to
store rules such as eligibility rules accessible to the enrollment
engine 210 and compliance rules accessible to the monitoring engine
240. The rules database 292 may further store rewards calculation
rules accessible to the fulfillment engine 250 and any other rules
required for processing by the remaining components of the mortgage
matching system 200.
[0047] FIG. 3 is a block diagram illustrating a computing system
300 implementing a mortgage matching system in accordance with an
embodiment of the invention. This configuration is merely exemplary
and should not be construed as limiting. It is likely that multiple
computing systems or devices will be utilized to implement the
method and system in accordance with embodiments of the invention.
The computing system 300 may include a processing unit 310, a
peripheral interface 320, a user input interface 330, a system bus
340, a system memory 350, a network interface 390, a connected
modem 392, and a memory interface 394. The system bus 340 may be
provided for coupling the various system components. In embodiments
of the invention, certain components, such as modem 392, need not
be included.
[0048] Computers typically include a variety of computer readable
media that can form part of the system memory and be read by the
processing unit. By way of example, and not limitation, computer
readable media may comprise computer storage media and
communication media. The system memory 350 may include computer
storage media in the form of volatile and/or nonvolatile memory
such as read only memory (ROM) 360 and random access memory (RAM)
370.
[0049] A basic input/output system (BIOS) 362, containing the basic
routines that help to transfer information between elements, such
as during start-up, is typically stored in ROM 360. RAM 370
typically contains data and/or program modules that are immediately
accessible to and/or presently being operated on by processing
unit. The data or program modules may include an operating system
374, mortgage matching system 200, other program modules 376, and
program data 380. The operating system may be or include a variety
of operating systems such as Microsoft Windows.RTM. operating
system, the Unix operating system, the Linux operating system, the
Xenix operating system, the IBM AIX.TM. operating system, the
Hewlett Packard UX.TM. operating system, the Novell Netware.TM.
operating system, the Sun Microsystems Solaris.TM. operating
system, the OS/2.TM. operating system, the BeOS.TM. operating
system, the Macintosh.TM..RTM. operating system, the Apache.TM.
operating system, an OpenStep.TM. operating system or another
operating system of platform.
[0050] At a minimum, the memory 350 includes at least one set of
instructions that is either permanently or temporarily stored. The
processor 310 executes the instructions that are stored in order to
process data. The set of instructions may include various
instructions that perform a particular task or tasks, such as those
shown in the appended flowcharts. Such a set of instructions for
performing a particular task may be characterized as a program,
software program, software, engine, module, component, mechanism,
or tool. The mortgage matching system 200 may include a plurality
of software processing modules stored in a memory as described
above and executed on a processor in the manner described herein.
The program modules may be in the form of any suitable programming
language, which is converted to machine language or object code to
allow the processor or processors to read the instructions. That
is, written lines of programming code or source code, in a
particular programming language, may be converted to machine
language using a compiler, assembler, or interpreter. The machine
language may be binary coded machine instructions specific to a
particular computer. Any suitable programming language may be used
in accordance with the various embodiments of the invention.
Illustratively, the programming language used may include assembly
language, Ada, APL, Basic, C, C++, COBOL, dBase, Forth, FORTRAN,
Java, Modula-2, Pascal, Prolog, REXX, and/or JavaScript for
example. In embodiments of the invention, Ab Initio.TM. software is
implemented and structured query language (SQL) is implemented for
coding.
[0051] Further, it is not necessary that a single type of
instruction or programming language be utilized in conjunction with
the operation of the system and method of the invention. Rather,
any number of different programming languages may be utilized as is
necessary or desirable.
[0052] Also, the instructions and/or data used in the practice of
the invention may utilize any compression or encryption technique
or algorithm, as may be desired. An encryption module might be used
to encrypt data. Further, files or other data may be decrypted
using a suitable decryption module.
[0053] The computing environment may also include other
removable/nonremovable, volatile/nonvolatile computer storage
media. For example, a hard disk drive may read or write to
nonremovable, nonvolatile magnetic media. A magnetic disk drive may
read from or writes to a removable, nonvolatile magnetic disk, and
an optical disk drive may read from or write to a removable,
nonvolatile optical disk such as a CD ROM or other optical media.
Other removable/nonremovable, volatile/nonvolatile computer storage
media that can be used in the exemplary operating environment
include, but are not limited to, magnetic tape cassettes, flash
memory cards, digital versatile disks, digital video tape, solid
state RAM, solid state ROM, and the like. The storage media are
typically connected to the system bus through a removable or
non-removable memory interface.
[0054] The processing unit 310 that executes commands and
instructions may be a general purpose computer, but may utilize any
of a wide variety of other technologies including a special purpose
computer, a microcomputer, mini-computer, mainframe computer,
programmed micro-processor, micro-controller, peripheral integrated
circuit element, a CSIC (Customer Specific Integrated Circuit),
ASIC (Application Specific Integrated Circuit), a logic circuit, a
digital signal processor, a programmable logic device such as an
FPGA (Field Programmable Gate Array), PLD (Programmable Logic
Device), PLA (Programmable Logic Array), RFID processor, smart
chip, or any other device or arrangement of devices that is capable
of implementing the steps of the processes of the invention.
[0055] It should be appreciated that the processors and/or memories
of the computer system need not be physically in the same location.
Each of the processors and each of the memories used by the
computer system may be in geographically distinct locations and be
connected so as to communicate with each other in any suitable
manner. Additionally, it is appreciated that each of the processor
and/or memory may be composed of different physical pieces of
equipment.
[0056] A user may enter commands and information into the computer
through a user interface 330 that includes input devices such as a
keyboard and pointing device, commonly referred to as a mouse,
trackball or touch pad. Other input devices may include a
microphone, joystick, game pad, satellite dish, scanner, voice
recognition device, keyboard, touch screen, toggle switch,
pushbutton, or the like. These and other input devices are often
connected to the processing unit through a user input interface
that is coupled to the system bus, but may be connected by other
interface and bus structures, such as a parallel port, game port or
a universal serial bus (USB).
[0057] One or more monitors or display devices may also be
connected to the system bus via an interface 320. In addition to
display devices, computers may also include other peripheral output
devices, which may be connected through an output peripheral
interface. The computers implementing the invention may operate in
a networked environment using logical connections to one or more
remote computers, the remote computers typically including many or
all of the elements described above.
[0058] Various networks may be implemented in accordance with
embodiments of the invention. These networks may include any of
those described above with reference to FIG. 1. Although many other
internal components of the computer are not shown, those of
ordinary skill in the art will appreciate that such components and
the interconnections are well known. Accordingly, additional
details concerning the internal construction of the computer need
not be disclosed in connection with the present invention.
[0059] Those skilled in the art will appreciate that the invention
may be practiced with various computer system configurations,
including hand-held wireless devices such as mobile phones or PDAs,
multiprocessor systems, microprocessor-based or programmable
consumer electronics, minicomputers, mainframe computers, and the
like. The invention may also be practiced in distributed computing
environments where tasks are performed by remote processing devices
that are linked through a communications network. In a distributed
computing environment, program modules may be located in both local
and remote computer storage media including memory storage
devices.
[0060] Although the aforementioned components are shown as discrete
modules, each of the modules may alternatively be integrated with
one another. If the modules are discrete, multiple modules may
operate cooperatively as will be further explained below.
[0061] FIG. 4 is a flow chart illustrating a computing system
implementing a mortgage matching system in accordance with an
embodiment of the invention. The method begins in S400 and in S410,
the enrollment engine of the mortgage matching system processes
enrollment of a customer in the mortgage matching system. In S420,
the closing components close the mortgage loan for the enrolled
customer. In S430, reporting components may operate to forward
notification of the successful enrollment to the customer. In S440,
the mortgage matching system conducts ongoing monitoring to ensure
compliance with rules and/or pre-conditions of the mortgage
matching system. If all conditions checked are fulfilled in S450,
the mortgage matching system proceeds to S470 for operation of the
fulfillment engine, which calculates and transfers the reward to
the mortgage customer. If the conditions are not fulfilled in S450,
the exception handler operates in S460 to determine appropriate
next steps. In embodiments of the invention, the exception handler
may operate simultaneously with other system components and/or
periodically throughout a customer's enrollment in order to detect
and handle exceptions.
[0062] FIG. 5 is a flow chart illustrating an enrollment method
performed by the mortgage matching system in accordance with an
embodiment of the invention. The method begins in S500 and the
enrollment engine receives the mortgage application in S502. In
S510, the enrollment engine provides program information to the
mortgage customer. If the enrollment engine receives no indication
that the customer wants to opt in at S512, the mortgage proceeds to
closing in the usual manner in S520. However, if the enrollment
engine receives an indication that the customer wants to opt into
the mortgage matching system in S512, the enrollment engine then
proceeds to determine whether the customer holds a checking account
with the financial institution in S522. In embodiments of the
invention, if the customer does not hold a checking account in
S522, the enrollment engine downloads an electronic coupon code in
S530, which may be usable in S540 in order to open a checking
account with the financial institution. If in S522, the enrollment
engine determines that the customer has a checking account, the
enrollment engine may cause downloading of a coupon code in S540
and thereafter proceed with enrollment in S560. The method ends in
S570.
[0063] FIG. 6 is a flow chart illustrating a closing method in
accordance with an embodiment of the invention. The method begins
in S600 and the closing engine receives the completed loan
documents in S610. In S620, the closing engine processes the
completed documents and forwards them for servicing. The closing
engine creates mortgage matching system records for the new loan in
S630 and may store the records in the database 290. The method ends
in S640.
[0064] FIG. 7 is a flow chart illustrating a monitoring method in
accordance with an embodiment of the invention. The method begins
in S700 and the monitoring engine searches for valid checking
accounts for enrolled customers in S710. If a valid checking
account has not been established in S720, the monitoring engine
refers the customer record to the exception handler in S770 for
exception handling. If a valid checking account has been
established in S720, the monitoring engine may check for ACH
enrollment completion in S730 if the mortgage matching system
requires this contingency. If enrollment has not been completed in
S740, the monitoring engine refers the customer record to the
exception handler in S770 for processing. If, however, in S740,
enrollment has been completed, the monitoring engine may check for
ACH payments in S750. If the customer has been ACH compliant in
760, the monitoring engine may refer the customer record to the
fulfillment engine for fulfillment in S780. If the customer had not
been ACH compliant in S760, the monitoring engine may refer the
customer record to the exception handler for processing in
S770.
[0065] FIG. 8 is a flow chart illustrating fulfillment in
accordance with an embodiment of the invention. The method begins
in S800 and the fulfillment engine receives an eligibility
indication in S810. The eligibility indication may be in the form
of an eligibility list for multiple eligible customers. In S820,
the fulfillment engine calculates a payment account in accordance
with stored rules. In S830, the fulfillment engine determines a
destination for the calculated reward and the process ends in S840.
In embodiments of the invention, once fulfillment has occurred, the
system may send the participant a mobile alert or other
notification of fulfillment.
[0066] FIG. 9 is a flow chart illustrating a method for
implementing selectable options in accordance with an embodiment of
the invention. In embodiments of the invention, the mortgage
payments made by the financial institution may constitute merely
one selectable aspect of an overall rewards program managed by the
financial institution. For example, the customer may choose to
apply the rewards arising from the mortgage matching system
participation to principal payment, but may alternatively choose to
apply the calculated rewards to any other benefit offered by the
financial institution, such as to payment of another loan, for
example a home equity loan, or simply to an overall rewards
program. In other embodiments, the mortgage matching system may be
wholly separate from the overall rewards program offered by the
financial institution.
[0067] As set forth above, in embodiments of the invention,
eligible customers may be entitled to select a destination for
mortgage matching funds. An embodiment of the method begins in S900
and the system completes mortgage match enrollment in S910. In
S920, the system offers selectable options to the eligible
customer. These selectable options may be offered for example
through a user interface providing selectable checkboxes. In
response to offering the selectable options, the mortgage matching
system may receive a user selection as set forth in steps S930,
S940, and S950. For example in S930, the system receives a mortgage
pay down selection. In S940, the system receives an investment
account selection. In S950, the system receives a selection to
accrue rewards points. In S960, the selection is stored in a
mortgage matching database for subsequent retrieval by the
fulfillment engine. The method ends in S970.
[0068] The method illustrated in FIG. 9 is merely exemplary, as in
some embodiments, the customer may not be permitted to make a
destination choice. For example, in one embodiment, all funds
accrued during the mortgage matching process will be directed to
mortgage pre-payment. Additionally, the method illustrated in FIG.
9 is not exhaustive, and in some embodiments, the customer may be
permitted to choose destinations not shown on FIG. 9, including,
but not limited to, directing the reward to be transferred to an
overall rewards program, such that all rewards from the financial
institution are combined, selecting payment of debts or credit card
rewards, or donating the rewards to a charitable or non-profit
organization.
[0069] FIG. 10 is a flow chart illustrating operation of refinance
components in accordance with an embodiment of the invention. The
method begins in S100 and a mortgage refinance notice is received
in S110. In S120, the refinance components of the mortgage matching
system determine the lender for the new mortgage loan. If the
lender is not a qualified lender for the mortgage matching system
in S130, the program will be terminated in S140. In embodiments of
the invention, the lender must remain the same as the lender for
the original mortgage in order for the refinance to remain a
qualified mortgage. If the lender is a qualified lender in S130,
the refinancing components calculate the program benefit to the
participating customer at the payoff date of the previous mortgage.
The refinance components then reduce the payoff amount by the
benefit earned in S160 and enroll the new loan number in S170. The
refinance process ends in S180.
[0070] Overall, the reward contribution from the financial
institution enables early payment of the mortgages of enrolled
customers and thus substantial interest savings for the enrolled
customers. Embodiments of the invention may allow for payment of
higher percentages based on the customer's deposited balance with
the financial institution in order to target a premier segment of
customers. Furthermore, customers who prefer other types of rewards
may be able to earn these rewards simply through timely payment of
mortgages.
[0071] While particular embodiments of the invention have been
illustrated and described in detail herein, it should be understood
that various changes and modifications might be made to the
invention without departing from the scope and intent of the
invention.
[0072] From the foregoing it will be seen that this invention is
one well adapted to attain all the ends and objects set forth
above, together with other advantages, which are obvious and
inherent to the system and method. It will be understood that
certain features and sub-combinations are of utility and may be
employed without reference to other features and sub-combinations.
This is contemplated and within the scope of the appended
claims.
* * * * *