U.S. patent application number 14/561541 was filed with the patent office on 2015-06-11 for system and method of expedited credit and loan processing.
The applicant listed for this patent is David Lohoefer, Paul Pawlusiak. Invention is credited to David Lohoefer, Paul Pawlusiak.
Application Number | 20150161726 14/561541 |
Document ID | / |
Family ID | 48983043 |
Filed Date | 2015-06-11 |
United States Patent
Application |
20150161726 |
Kind Code |
A1 |
Pawlusiak; Paul ; et
al. |
June 11, 2015 |
SYSTEM AND METHOD OF EXPEDITED CREDIT AND LOAN PROCESSING
Abstract
A system and method of expedited credit approval and lending for
an applicant initially pre-qualifies the applicant using an input
device to obtain predetermined applicant identification information
and transmits the applicant identification information to the
credit and loan processor computer which verifies the applicant
identification without pulling credit. If verified, applicant
answers predetermined prescreen question to initially pre-qualify
the applicant and the applicant's answer is compared to a
predetermined lender/dealer criteria for the prescreen question to
determine whether to continue with the loan application if the
applicant's answer meets the predetermined lender/dealer criteria
or end the loan application if the predetermined lender/dealer
criteria is not met, before pulling credit. The source or
transaction originator is notified of the decision. The credit and
loan processor software program continues to pre-qualify the
applicant using stated debt to income ratio for a selected loan
type and if pre-qualified, then processes full credit.
Inventors: |
Pawlusiak; Paul; (Wixom,
MI) ; Lohoefer; David; (Wixom, MI) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Pawlusiak; Paul
Lohoefer; David |
Wixom
Wixom |
MI
MI |
US
US |
|
|
Family ID: |
48983043 |
Appl. No.: |
14/561541 |
Filed: |
December 5, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13839901 |
Mar 15, 2013 |
8909551 |
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14561541 |
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PCT/US12/56949 |
Sep 24, 2012 |
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13839901 |
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13625796 |
Sep 24, 2012 |
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PCT/US12/56949 |
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61537757 |
Sep 22, 2011 |
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61537757 |
Sep 22, 2011 |
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Current U.S.
Class: |
705/38 |
Current CPC
Class: |
G06Q 40/02 20130101;
G06Q 40/025 20130101 |
International
Class: |
G06Q 40/02 20120101
G06Q040/02 |
Claims
1. A method of expedited direct or indirect application approval
and processing related to purchase of goods, services or programs,
the method comprising the steps of: (a) providing at least one
processing software program resident on a credit sale and loan
processor computer having a server and a data storage device, the
processing software program having or accessing at least one
seller-selected consideration criterion wherein the seller has
possession of at least one collateralizable article; (b) populating
predetermined identification information fields resident in the
software with application-relevant information associated with a
prospective individual purchaser of the collateralizable article
under the control of a seller using an input device and
transmitting the application-relevant information to the credit
sale and loan processor computer; (c) verifying the
application-relevant information by the credit sale and loan
processing software and generating at least one verification result
command, the verification result command being one of either a
computer-generated verification signal or a computer generated
non-verification signal; (d) upon receipt of a computer-generated
verification indication, analyzing the application-relevant
information against qualification parameters resident in the at
least one software program and generating at least one output
solution, wherein the output solution is one associated with a
concluded credit sale transaction that is assignable by the seller
to a financial institution and wherein the credit sale and loan
processing program includes an automated loan structuring tool that
is used to generate the output solution wherein the structuring
tool: (a) prompts input of predetermined information associated
with the credit sale; (b) automatically calculates the credit sale
structure and notifies the seller of the collateralizable article
of adjustment to comply with predetermined rules associated with
the credit sale to comply with assignment to at least one financial
institution; and (c) generates a funding package for the credit
sale to the seller of the collaterizable article from the credit
sale and loan processor via the communications network.
2. The method of claim 1 further comprising the step of:
classifying the inputted transaction data as either a direct or
indirect transaction, wherein the classification step includes at
least one user input action, the user input action executed by the
seller of the collaterizable article.
3. The method of claim 2 wherein classification as a direct
transaction results in creation of a direct credit application
between the prospective individual purchaser and the seller of at
least one collateralizable article.
4. The method of claim 2 wherein classification as an indirect
transaction results in at least one command step characterizing
seller as creditor and wherein the method further comprises the
step of: processing application-relevant information against one or
more seller-selected consideration criteria resident in or
accessible to the processing software program and generating at
least one output solution; and based on the at least one output
solution, generating at least one item of applicant-related
documentation.
5. The method of claim 1 wherein the verifying step further
comprises the following steps: if the verifying step generates a
positive verification indication, issuing a computer-generated
continuation command operable to initiate at least one sequentially
subsequent process step; if the verifying step generates a negative
verification indication (or), issuing at least one correction
request command.
6. The method of claim 4 wherein the verifying step further
comprises the step of re-verifying input resulting from the
correction request command(s), wherein if the re-verifying step
generates a positive verification command, issuing a
computer-generated continuation command operable to initiate at
least one sequentially subsequent process step.
7. The method of claim 1 further comprising the steps of: (a)
providing a source computer that is in communication with the
credit sale and loan processor computer; (b) obtaining income and
debt information from application-relevant information using the
processing software program; (c) determining a debt-to-income ratio
based on application-relevant information using the processing
software program; (d) performing at least one program driven
analysis of the determined debt-to-income ratio against at least
one consideration criterion selected the seller, wherein the
seller-selected consideration criterion is relevant to
debt-to-income ratio such that favorable comparison prompts
continuation of the program and unfavorable comparison triggers at
least one notification signal to be transmitted to the seller,
wherein the seller-selected criterion includes data originating
from at least one third-party financial institution, and wherein
the at least one third-party financial institution seeks assignment
of the resulting credit sale transaction; (e) generating a list of
tier categories and communicating the generated list to the seller,
wherein selection of one listed tier category triggers continuation
of the processing program and at least one computer-generated
command to obtain the prospective individual purchaser's credit
report from a credit reporting agency in communication with the
credit sale and loan processor computer; (f) analyzing the obtained
credit report against the at least one consideration criterion for
the selected credit sale and loan tier category generated by the
processing software program and generating at least one
communication message to the seller; and (g) prompting the seller
for at least one approval input upon indication of acceptable
credit report criteria and denying the credit sale or loan to the
prospective individual purchaser if the predetermined criteria for
the selected credit sale or loan tier is not met and communicating
whether the credit sale or loan is pre-approved or denied to the
prospective purchaser via the communications network.
8. The method of claim 1 further comprising the steps of: using the
consideration criteria to initially pre-qualify a co-applicant
using the credit sale and loan processing software program.
9. The method of claim 8 further comprising the steps of: selecting
another credit sale or loan category if the credit sale or loan to
the potential purchaser for the initial selected assignable credit
sale or loan category is denied using the processing software
program.
10. The method of claim 8 further comprising the steps of: using an
automated credit sale or loan structuring tool associated with the
processing software program to evaluate feasibility and complete
the assignable credit sale transaction, wherein the automated
credit sale or loan structuring tool: (a) prompts the seller to
input predetermined information for the credit sale or loan type;
(b) automatically structures the credit sale transaction and
notifies the source seller of adjustments to comply with applicable
rules associated with the selected credit sale transaction; and (c)
sends a funding package for the credit sale to the seller from the
credit sale and processor via the communications network, the
funding package including at least one executable document.
11. The method of claim 10 further comprising the step of providing
the seller with access to a status of the credit sale or loan
application using the credit sale and loan transaction processing
software program.
12. The method of claim 1 wherein the seller is a vehicle dealer
and collateralizable article a vehicle.
13. The method of claim 1 wherein the potential purchaser
identification information is obtained using electronic means and
transmitted to the processor computer.
14. The method of claim 1 wherein the seller-selected consideration
criterion is derived from qualification criterion of the seller
and/or one or more lending institutions and the qualification
criterion is queried to identify at least one transaction category
for which the prospective individual purchaser pre-qualifies
without consideration of the prospective individual buyer's credit
score and credit history.
15. The method of claim 14 wherein the application-relevant
information includes at least one of: debt-to-income ratio,
customer statement, co-applicant information, wherein the
application-relevant information is determined without
consideration of the prospective purchaser's credit score and
credit history.
16. A system of expedited credit sale approval and lending, the
system comprising: a processing software program resident on at
least one credit sale and loan processor computer, the credit sale
and loan processor computer having a server and a data storage
device, wherein the credit sale and loan processing software
program obtains predetermined application-relevant identification
information using an input device, wherein the application-relevant
information is associated with a prospective individual purchaser
of a collateralizable article under the control of a seller, and
wherein the input device verifies the application-relevant
information and, if verified, continues to process the credit
sale-application; a display device in communication with the credit
sale and loan processor computer for communicating at least one
query to the seller; an input device for transmitting the
application-relevant information to the credit sale and loan
processing computer, wherein the processing software program
compares the application-relevant information against at least one
seller-selected consideration criteria to produce at least one
output solution, wherein the seller-selected information includes
value of at least one collaterizable article.
17. The system as set forth in claim 16 further comprising: a
lender computer in communication with the credit sale and loan
processor computer via a communications network, wherein the lender
provides the credit sale and loan processor software program with
consideration criteria, independent of transaction between the
seller and the prospective purchaser.
18. The system as set forth in claim 17 further comprising: a
seller computer in communication with the credit sale and loan
processor computer via a communications network to obtain income
and debt information from the prospective purchaser of the
collateralizable article under the control of the seller using the
processing software program, and wherein the processing software
program determines a debt-to-income ratio for the prospective buyer
by comparing the prospective buyer's debt-to-income ratio to a
debt-to-income ratio rule for the associated transaction, wherein
the debt-to-income ratio rule is derived from consideration
criteria provided by at least one of the following: the seller
and/or the lender, and wherein the software processing program
continues the process if the derived debt-to-income ratio is met
and ends the process if the derived debt-to-income ratio is not
met; and wherein the lender computer provides the credit sale and
loan computer with at least one additional consideration criterion,
the additional consideration criterion including at least one of
credit sale or loan categories available to the seller, deal
structure, collateral requirement wherein upon receiving indication
that the consideration criterion are met, the processing software
program obtains the prospective purchaser's credit report from a
credit reporting agency in communication with the processor
software computer and ascertains whether the prospective
purchaser's credit report is consistent with the previously
employed consideration criteria and identifies one or more
qualifying transaction categories to the seller, wherein the
ascertainment process and identification process proceeds
independent of lender interaction.
19. The system of claim 18 wherein the seller is a vehicle dealer
and the collateralizable article is a vehicle.
20. The process of claim 1 wherein the software program is present
in a computer readable medium.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. Ser. No.
13/839,901 filed Mar. 15, 2013 which is currently co-pending and is
a continuation-in-part of U.S. Ser. No. 13/625,796 filed Sep. 24,
2012, which is currently co-pending, the entire disclosures of
which are incorporated herein by reference, both of which claim the
benefit of U.S. Provisional Application No. 61/537,757 filed Sep.
22, 2011, the entire disclosure of which is incorporated herein by
reference.
BACKGROUND
[0002] The present disclosure relates generally to credit
application evaluation and loan processing, and more particularly,
to an integrated method and system for expeditiously determining
the credit worthiness of a borrower and processing a loan using an
electronic lending platform format.
[0003] When a consumer is interested in financing a prospective
purchase of a good or service based on credit, the consumer
typically completes a credit application for review by a potential
lender. This type of application can be referred to as a direct
transaction and is as follows. In a direct loan transaction, a
credit application usually requires the applicant to provide
certain sensitive personal information, such as the applicant's
social security number, date of birth, or the like. This
information is submitted by the consumer or on the consumer's
behalf by a third party who does not participate in the credit
decision process for the given application and in consideration for
the consumer to receive the lender(s) response directly and that
the consumer will chose to apply contract with one such lender as
applicable directly.
[0004] This contrasts with an indirect loan transaction in which
the consumer is approved through the sales entity at which they are
purchasing the goods, product or service(s) and that sales entity
functions as the source indicator for financial institution(s) who
will ultimately purchase the completed loan application and
exchange the collateral with the selling entity subsequent to this
transaction. In reality, the selling entity is the only creditor
and is the decision making entity that determines whether the newly
acquired asset will be resold or retained.
[0005] In an indirect sales situation, the seller may transmit the
completed application to one or more lenders for evaluation. Each
of the lenders, in turn, submits required credit request
information to a credit-reporting agency based on the information
in the completed credit application. For a fee, the
credit-reporting agency generates a credit report and associated
credit score and provides it to the prospective lender. The
information is then transmitted from each of the potential lenders
to the seller. The seller then identifies the financing options
available to the applicant based on a comparison between the credit
report and associated credit score and the lending criteria of
various lending institutions. This process as described may or may
not subscribe to industry best practices and/or comply with current
and future lending requirements and regulations. Furthermore, the
process as just described is cumbersome and generates unnecessary
actions that can have undesired effects on the consumer and/or
financing source. It would be desirable to provide a platform that
would identify whether the transaction was to be a direct
transaction or an indirect transaction and would allow all
participants involved in the transaction process to conduct the
transaction efficiently, economically and in compliance with
current and/or future lending rules, regulations and requirements.
It is understood that indirect transactions as that term is used
herein include transactions referred to as credit sales or Retail
Installment Sales that are governed by retail installment sales
contracts (RSIC) It would also be desirable to provide a system and
methodology that allows the participants to the transaction to
increase the likelihood of successful and compliant application
transaction consummation by a variety of prequalification
indicators including, but not limited to, information vetting
through a series of checks and balances prior to submission of a
completed or near-completed application.
[0006] Conventional credit approval processes can be slow, very
time consuming and often results in a significant amount of wasted
effort on the part of those involved, especially if the applicant
has a poor credit history. Moreover, the process can be costly for
the potential lenders, and can adversely affect a consumer's credit
score, such as if a credit application is denied or due to multiple
"pulls" of the consumer's credit score by different potential
lenders. Once the applicant is approved for the loan transaction,
then other unrelated parties may be involved in structuring and
finally closing the loan. In instances where the transaction
involves an RSIC, unrelated parties are not involved in structuring
or closing the sale and are not to be permitted access to the
consumer credit information.
[0007] Thus, there is a need in the art for a faster, more
efficient, more cost-effective credit application process that
uniformly makes credit determinations earlier in the loan
application process. Further, there is the need for an integrated
system for executing the approved loan.
SUMMARY
[0008] Accordingly, a system and method of expedited direct and/or
indirect application(s) is disclosed herein. The process includes
the steps of: input of application-relevant information using any
suitable input device. The application-relevant information can
include, but is not limited to, personal and non-personal
information as required. The inputted application-relevant
information can now be transmitted through suitable input device(s)
to the platform credit sales and loan processor computer which in
turn analyzes the application-relevant information against
qualification parameters that are resident within the platform and
may generate a minimum of one output solution based upon this
parameter analysis that can be transferred in computer readable
medium. This process can be implemented for both direct and
indirect loan transactions.
[0009] The process also includes at least one step in which the
characterization of the transaction is classified as either and
indirect or direct loan transaction. This information can be
inputted as part of the process. Preferably, this input/decision
occurs in the initial phases of the application process. It is to
be understood that, in a direct transaction as that term is
employed herein, the transaction which progresses can also be
characterized as a direct credit application between the
applicant/consumer directly to the financial institution
lender.
[0010] In an indirect transaction, the applicant's application is
submitted to the seller of the goods, product or services that the
applicant chooses to purchase. At this time, the seller is
considered the creditor as he is the owner of the goods products or
services that the applicant seeks to purchase. Therefore the seller
is entity that is taking the applicant's complete application. The
transaction may mature into an RSIC or a lease credit sale which
the seller of the goods may choose to assign to an entity unrelated
to the buyer/seller transaction distinct from the buy/sell
transaction has been completed. The applicant's information is
submitted to the platform disclosed herein to generate a solution
that may include at least one or more consideration criteria
contained within that seller's profile. The consideration criteria
can be derived from a variety of sources which include but are not
limited to transaction attributes provided from one or more of the
various financial sources/lenders (for example consumer
debt-to-income ratio, the ratio of the cost of the purchased
article to the amount financed, etc.) Consideration criteria can
also include information derived from and identified within the
seller's underwriting profile. The generation step can include a
query or queries that results in the vetting of the complete
application against the identified financial source/lender(s)
criteria associated within the specific seller's profile to
determine the applicant's qualification.
[0011] If verified, the process continues with the applicant
answering predetermined prescreen question(s) to initially
pre-qualify the applicant and the applicant's answer is compared to
predetermined lender/financing source criteria for the prescreen
question to determine whether to continue with the application if
the applicant's answer meets the predetermined lender/financing
source criteria or end the loan application if the predetermined
lender/financing source criteria is not met, before pulling credit.
The entity that is doing the submission is notified of the
decision. The credit and loan transaction processor software
program disclosed herein continues to pre-qualify the applicant
using stated debt-to-income ratio for a selected loan transaction
type and, if qualified, then processes the full application.
[0012] The method also includes the steps of using an automated
loan transaction structuring tool associated with the platform to
complete the application for either direct, indirect, lease or
Buy-here pay-here (BHPH) transactions. The automated loan
transaction structuring tool prompts the entity, i.e. the seller of
the goods, to input predetermined information for the loan
transaction type and automatically calculates loan transaction
structure and notifies the entity such as seller of the goods of
adjustments to comply with application predetermined rules
associated with the selected loan transaction type. The software
program platform sends the resulting funding package that can
include all of the required forms for the loan transaction to the
entity such as the seller of the goods.
[0013] The method also includes the steps of using an automated
loan transaction structuring tool associated with the credit and
loan processing software program to complete the application by the
seller (also referred to as the source or selling entity). The
automated loan structuring tool prompts the source/selling entity
to input predetermined information for the loan transaction type,
generates the proper application forms automatically, places or
associated a disclosure specifically created for that loan
transaction type with the query and automatically calculates the
loan transaction structure and notifies the source/selling entity
of adjustments necessary to comply with predetermined rules
associated with the selected loan transaction type. The software
program sends the funding package for the loan transaction to the
Assignee or Potential Assignee (e.g. lender) were permitted or the
assignable RISC were applicable.
[0014] A system of expedited loan transaction approval and lending
is provided that includes a credit and loan transaction processing
software program that is resident on a credit and loan processor
computer having a server and a data storage device. The credit and
loan transaction processing software obtains predetermined
identification information regarding an applicant using an input
device, verifies the applicant identification information and, if
verified, continues to process the application. The system includes
a display device in communication with the credit and loan
transaction processor computer for communicating a predetermined
prescreen question(s) to the applicant i.e. potential buyer to
initially pre-qualify the buyer/applicant for a loan transaction.
The system also includes an input device for transmitting the
buyer/applicant's answer to the predetermined prescreen question(s)
to the credit and loan transaction processing computer, and the
credit and loan transaction processor software program compares the
buyer/applicant's answer(s) to the prescreen question(s) to a
predetermined lender/dealer criteria for the prescreen question(s)
and communicates via the communications network whether to continue
with the loan application if the buyer/applicant's answer(s) meets
the predetermined lender/dealer criteria for the prescreen
questions and/or end the loan transaction application if the
buyer/applicant's answer does not meet the predetermined
lender/dealer criteria. The predetermined prescreen question is
selectively determined to initially pre-qualify the applicant for
the loan transaction without consideration of the buyer/applicant's
credit score and credit history. The system also includes a device
in communication with the credit and loan transaction processor
computer or device in a communications network, and the
lender/dealer/financial source provides the credit and loan
processor software program the predetermined prescreen questions.
The system also includes a source device such as a computer in
communication with the credit and loan processor computer via a
communications network to obtain income and debt information from
the buyer/applicant using the credit and loan processing software
program. The credit and loan processing software program determines
a debt-to-income ratio for the buyer/applicant by comparing the
buyer/applicant's debt-to-income ratio to a
lender's/dealer/financial source's predetermined debt-to-income
ratio rule for the loan and continues the application if the
lender's/dealer/financial source's predetermined debt-to-income
ratio is met and ends the application if the
lender's/dealer/financial source's predetermined debt-to-income
ratio is not met.
[0015] An advantage of the present disclosure is that the system
platform and method of expedited credit and loan transaction
processing provides a faster, more time efficient, more
cost-effective loan transaction application process resulting in a
faster decision regarding the desired transaction. Another
advantage is that the system and method of credit and loan
transaction processing protects the privacy and interests of all of
the parties involved. Still another advantage is that the system
and platform and method of credit and loan transaction processing
determines the loan transaction amount for which the
buyer/applicant can pre-qualify early in the process. Still yet
another advantage is that the system and method of credit and loan
transaction processing automatically structures the deal to comply
with lender/dealer/financial source's requirements. A further
advantage is that the system and method of credit and loan
transaction processing limits any potential adverse effects upon a
buyer/borrower's credit report if the buyer's application is
denied. Still a further advantage is that the system and method of
credit and loan processing creates an electronic
lender/dealer/financial source that is always available and can
selectively handle all facets of the lending process. Yet still a
further advantage is that the system and method of credit and loan
processing prescreens the potential loan candidate and makes a
credit decision without having to pull a credit report from a
credit agency. Yet a further advantage is that the system and
method of credit and loan processing can simultaneously contract
and close the deal upon lender/dealer approval.
[0016] Other features and advantages of the present disclosure will
be readily appreciated, as the same becomes better understood in
view of the subsequent description taken in conjunction with the
accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0017] The present invention will become more fully understood from
the detailed description and the accompanying drawings,
wherein:
[0018] FIG. 1 is a diagram illustrating a system for expedited
credit approval and lending.
[0019] FIGS. 2a-2d are directed to a flow chart illustrating a
method of credit approval and lending, using the system of FIG. 1;
according to an embodiment as disclosed herein;
[0020] FIGS. 3a-3m are a series of screen shots illustrating
implementation of the method of expedited credit approval and
lending of FIGS. 2a-2d in conjunction with the system of FIG. 1;
and
[0021] FIGS. 4a-4d are directed to a flow chart illustrating a
method of credit approval and lending, using the system of FIG. 1;
according to an alternate embodiment as disclosed herein.
DESCRIPTION
[0022] The following description of the preferred embodiment(s) is
merely exemplary in nature and is in no way intended to limit the
invention, its application, or uses. Referring to FIG. 1, a system
for use in credit approval and lending is provided. The system 200
includes a buyer/applicant 202, such as a consumer, customer, or
other entity desirous of obtaining financing or a loan transaction
for some use or purpose, the reason for the loan being
non-limiting. An example of a reason is the purchase of a product.
The product could be a vehicle, or real property, or consumer good
or the like. Another example of a reason is to pay for educational,
medical or other types of expenses. The buyer/applicant 202 may
have a computer. The applicant's computer has a processor,
controller, a database or memory associated with the controller, an
input device, output device and display device. The
buyer/applicant's computer may be any type of computer device, such
as a desktop, laptop, net book, smart phone, personal computer or
the like. The applicant's computer may be in communication with a
credit and loan transaction processing computer 212 via a
communications network 208 in a manner to be described.
[0023] The system also includes a seller 204 of a good or service.
In an example, the seller 204 is a seller or retail establishment,
such as an auto dealer, furniture store, appliance store, or the
like. In another example, the seller 204 offers a service, such as
medical care, insurance, or education or the like. In a further
example, the seller 204 offers a financial service, such as a bank,
credit union or the like. It should be appreciated that the source
seller 204 and a credit and loan transaction processor 210 could be
one in the same.
[0024] The system includes a seller computer 206 having a
processor, controller, a database or memory associated with the
controller, an input device, output device and display device. Data
relevant to the transaction may be stored on the source database.
The seller computer 206 may be a single computer or a series of
networked computers in communication with one another. The seller
computer 206 is in communication with a credit and loan processing
computer 212 and other computers in the system via a communications
network 208.
[0025] The input device 216 may be any type of data input device
such as a keyboard, mouse, voice recognition device, optical device
or the like. An example of an optical device is a scanner that
optically reads an image and converts the image into digital or
electrical content. Similarly, the input device may a bar code
reader that reads a magnetic strip and converts the information
into electrical content.
[0026] The communications network 208 may be wired or wireless, or
a combination thereof. Examples of a communications network
includes, a telecommunication network, a line-connected network, a
wireless communication network, such as an intranet or the
Internet, a local area network (LAN), wide area network (WAN),
virtual private network (VPN), a digital communication network or
system, a personal communication services (PCS) network or system,
a satellite communication network, a broad band communication
network, a radio communication network, any other communication
network or system or combination thereof, and the type of
communication network is non-limiting.
[0027] The credit and loan transaction processing computer 212 may
be a server having a processor, controller, a database or memory
associated with the server, an input device, output device and
display device. Data relevant to the transaction may be stored in
the database. The credit and loan transaction processing computer
212 may be one or a series of networked computers in communication
with one another. The credit and loan processing transaction
computer 212 can provide control over the system and may perform
any of the various processing services and/or functions to be
described herein. Further, the credit and loan processing
transaction computer 212 can provide services for any of the other
system computers, and may facilitate communications between such
computers. In this manner, data and/or information transfer between
any of such computers may be in a bidirectional manner.
[0028] An expedited credit and loan transaction processing software
program 214 is resident on the credit and loan transaction
processing computer 212. The credit and loan transaction processor
210 provides lending services to the seller 204 via a completely
automated turnkey lender management platform (LMP) providing user
customizable credit decision making and loan processing.
Advantageously, the LMP may move a potential loan from application
to maturity all within one system.
[0029] The system 200 further includes a lender/dealer/financing
source 220 having the ability to loan the buyer/applicant capital,
or otherwise provide funding via a loan transaction such as an
RISC. The credit and loan transaction processor 210 may interact
with multiple lender/financing sources 220 in structuring the loan
transaction. The lender/financing source 220 likewise has a
lender/financing source computer 222 associated therewith. The
lender/financing source computer 222 may have a processor,
controller, a database or memory associated with the controller, an
input device, lender/dealer output device and display device. Data
relevant to the transaction may be stored on the financing source
lender/dealer database. The lender/financing source computer 222
may be a single computer or a series of networked computers in
communication with one another. The lender/financing source
computer 222 is in communication with the credit and loan
transaction processing computer 212 and other computers in the
system via a communications network, as previously described.
[0030] The credit and loan transaction processor 210 may be in
communication with others entities 224 involved in the lending
process via an entity computer 226, such as a credit reporting
agency and associated credit reporting agency computer that
compiles and reports credit scores for an individual. The entity
computer 226 is similarly in communication with the other computers
and such communication can be across the previously described
communications network 208. The credit and loan processor 210 is
flexible and can accommodate various aspects of the credit
application process and parties involved, such as lenders/financing
source 220, new programs and changes to existing programs and/or
tiers, vendors, dealers, loan servicing, investors, or the like.
The loan transaction itself can be associated with any type of
retail, leasing, LHPH or BHPH transaction, and the nature of the
transaction is non-limiting. Advantageously, features may be built
into the platform to assist with saving the lender/dealer money
from filtering the applicant with pre-screen questions to analyzing
criteria such as debt to loan ratio (DTI) prior to pulling credit.
New loan programs can be added and changes to existing programs
and/or tiers, can be made at any time by the lender/dealer 220 or
seller 204. The credit and loan processor 210 facilitates these
additions and changes so they are completed within days rather than
months as typical in conventional credit application process and
systems.
[0031] Other features associated with the process disclosed herein
may be utilized by the credit and loan transaction processor 210.
These include, but are not limited to: Extended Service Contracts,
Credit Life, Accident and Health, Maintenance, GAP, VSI, etc. In an
example of a seller 204 that is an auto dealer, the credit and loan
transaction processor 210 has the capability of importing providers
that are currently signed with an organization. Alternatively, the
credit and loan transaction processor 210 can facilitate in
generating new sellers, i.e. dealers, for a program.
[0032] The credit and loan transaction processor 210 can provide
loan servicing, i.e. back up or primary loan servicing. For
example, the credit and loan transaction processor 210 can
incorporate features such as taking the loan after funding,
boarding the loan, facilitating consumer payments, collecting
receivables, assuming compliance responsibilities, handling any
claims, handling repossessions, collateral disposition,
bankruptcies, consumers calls, including payoff information, or the
like. The credit and loan transaction processor 210 may also
maintain real access to portfolios with the ability to auto
evaluate loan to value in real time.
[0033] The credit and loan transaction processor 210 may interact
with other entities 224. An example of another entity is a
government database such as Office of Foreign Currency Exchange
(OFAC), or the post office, or a license bureau and the selection
is non-limiting. An example of another entity is an investor. For
example, real time portfolio valuations can be pulled if the loan
is underwritten by the credit and loan processor and stored in a
database associated with the credit and loan processing computer.
Should a seller desire to sell all or a portion of his existing
portfolio, the seller need only to choose the date range of the
portfolio and click "offer for sale". The deals may be offered for
bid by an investor/assignee pool with the seller's consent. The
seller can have the opportunity to choose the best bid.
Advantageously, the sales process is reduced as the due diligence
is already done. Once the new investor purchases the portfolio and
the seller has been funded, titles to the new entity are
automatically transferred, where applicable. This could be done
with product servicing released or retained.
[0034] In another example, the credit and loan transaction
processor 210 may selectively accommodate portfolio transactions in
real time, break them down into segments of credit tiers and
scores, re-evaluate values on the fly and provide spreadsheets to
potential buyers of the portfolio. Additionally, the credit and
loan transaction processor 210 can accommodate a pool of potential
investors where bids for the originator can be obtained if desired.
Thus, the use of multiple platforms for originating, booking,
servicing, and selling (where applicable) loan portfolios is
avoided.
[0035] The credit and loan transaction processing software program
214 may include user selectable features that are implemented in a
manner to be described. The user selectable features may be
incorporated in modules, to enhance the flexibility of the program
214. Examples of user selectable features include: prescreen
applications, debt-to-income (DTI) calculation occurring before
credit report is pulled, valuation of collateral, deal structure to
fit compliance with all programs and tiers, electronic funding
packages (contract forms, warranty, etc.), electronic and mirrored
funding process, document storage, auto update statuses, view
contract in transit, full servicing or back up servicing, portfolio
sales, compliance with OFAC, Red Flag, and consumer notification
letters, adverse credit action letters, text messaging and email,
note section (all communication automatically stored within the
deal), lender/financial source override capabilities, VIN decoder,
forms Library, custom forms, reports (Look to book, dealer
activity, marketing activity, loan processor performance, expired
deals (auto expire in 30 days), outstanding approvals not
contracted, penetration by program and tier, complete deal status
and recap., etc. The credit and loan transaction processing
software program 214 may also include a reports module which can
provide the stored data in a user configurable format, i.e. range,
back end product, etc.
[0036] Referring to FIGS. 2A through 2D, a flowchart illustrating a
method of expedited credit approval and lending is shown using the
system of FIG. 1. The method is implemented using a custom designed
lender/dealer software program that incorporates
lender/dealer-specific modules for the seller 204 or
lender/financial source 220 or other entity 224. Advantageously,
the modules may be programmed for complete automation. Examples of
seller 204 selectable modules includes custom templates for
prescreen, debt-to-income calculations, credit underwriting, or the
like. Another example of a module is a security module, such as for
assigning user IDs and passwords. The modules can be implemented in
a user selectable manner.
[0037] Examples of customized lender/dealer/financial
source-specific modules or components may pertain to the following:
originations, credit, automatic decisions, automatic structure,
electronic ID and signature, automatic contracting, electronic
funding verifications, item valuations, full servicing or back up,
portfolio sales, electronic search features to locate applicants,
automatic status updates, reports including real-time reports,
built-in email, text, and messaging, or the like.
[0038] The method may be utilized with any type of transaction. In
a non-limiting example to be described, the transaction is a loan
for the sale and purchase of a vehicle. In such an example, the
applicant 202 is a vehicle buyer and the seller 204 is an
automotive dealer. However, the method is applicable to any
transaction for value.
[0039] The method begins in block 300 with the step of the
providing the applicant 202 access to the credit and loan
transaction processing software 214. The order of steps shown is by
way of example, and the steps may be varied for a particular
example. Such access may be provided by the seller 204 using the
seller computer device 206 as previously described. Alternatively,
access may be provided directly to the applicant 202 using an
applicant computer device (not shown), so that the applicant 202 is
prescreened and preapproved prior to contacting the seller 204. For
example, the applicant 202 or seller 204 is presented with a home
page for access or log in purposes as shown in FIG. 3a. The user
may be prompted to enter a User Name and password. Different users
may be assigned a predetermined level of access, i.e. administrator
or loan. As shown in FIG. 3b, the seller may select a Loan/Credit
App tab and will be provided with a page summarizing the status of
transactions. The status may change as updates are made by the
credit and loan transaction processing software program 214.
Advantageously, the system platform is always available and is
searchable. Customized reporting may also be available. As
demonstrated in FIG. 3b, different users may be assigned different
levels of access, for example administrator loan applicant.
[0040] The method advances to block 302 and the prescreen of the
applicant 202 is initiated. An agent of the seller 204 or the
applicant 202 may initially access the credit and loan transaction
processing software 214 in order to perform the prescreen. The
method advances to block 304 and the applicant 202 is prescreened.
As shown in FIG. 3c, the user may selectively be provided with a
page and identification information pertaining to the applicant 202
and such information is provided as an input to the credit and loan
transaction processing software 214. The identification information
may be input automatically or manually via an input device
associated with either the applicant computer device or seller
computer device 206. For example, the identification information
can include the applicant's name, address, date of birth, driver's
license number, or other such identification number, phone number
or the like. The identification information may be automatically
entered such as by scanning a driver's license or identification
card using an electronic data reader 216.
[0041] The method advances to block 306 and the credit and loan
transaction processor may optionally perform a "soft" credit pull
that is based on the provided identification information. The soft
credit pull merely verifies that the identification information
provided is accurate using publicly available information. It
should be appreciated that the soft credit pull does not involve
accessing a credit reporting agency that maintains credit reports
and compiles a credit score for an individual based on their
particular credit history. If the identification information is
verified, the method advances to block 308 and the applicant is
provided with loan types from lenders/dealers 220 relevant to the
transaction and the loan application is initiated.
[0042] The methodology advances to block 310 and includes the step
of selecting the loan type for the particular applicant 202. The
applicant 202 may be provided with predetermined prescreen
questions relevant to the loan transaction type. Referring to FIG.
3d, an example of a page such as might appear on a display screen
associated with the applicant computer device or seller computer
device is illustrated with prescreen questions. Examples of
prescreen questions include whether the applicant 202 is employed,
how long the applicant has lived at the given address, or the like.
The prescreen questions may be maintained within a database
associated with the credit and loan transaction processing software
program 214, and the particular prescreen questions may be selected
based on a particular circumstance or circumstances. By evaluating
the prescreen questions early in the process, costs associated with
the loan transaction process are avoided. Such filtering is done
prior to pulling a credit report, for the benefit of the applicant
202 and lender/seller 204 to avoid duplicative credit
inquiries.
[0043] The method advances to block 312 and includes the step of
evaluating the response to the prescreen questions by the credit
and loan transaction processor 210. The prescreen questions are
monitored and performance tracked in real time by the credit and
loan transaction processor 210. It should be appreciated that the
prescreen questions may be lender/dealer specific and may be
updateable. The response to the prescreen question may be sent to
the lender/dealer/financing source 220 for evaluation, or evaluated
by the credit and loan transaction processor 210 based on
lender/dealer/financing source specific criteria. For example, the
lender/dealer/financial source specific prescreen questions may
have to be answered correctly in order to proceed.
[0044] The method advances to block 314 where it is determined
whether the applicant 202 has passed the prescreen question(s). If
the applicant 202 passed the prescreen questions, the loan
application process continues. If the applicant 202 does not pass
the prescreen step of block 314, then the loan application is
denied based on the prescreen phase. Advantageously, the applicant
202 has been evaluated without the need to check the applicant's
credit score. At this point, the applicant 202 has the option to
secure a co-applicant and begin the prescreen process again. The
co-applicant is prescreened in a similar manner as the applicant
202.
[0045] If the applicant 202 passes the prescreen step outlined at
block 314, the method advances to block 320 and continues with the
steps of providing additional applicant information and determining
a debt to income ratio for the applicant 202. The method advances
to block 322 and includes the step of the seller accessing a short
form loan application that obtains information from the applicant
202 regarding the applicant's income and debt. For example, after
passing the initial prescreen questions, applicant 202 or seller
204 may be provided with an applicant information screen as shown
in FIG. 3e. The applicant information screen represents a
customized short form application which includes entry of applicant
information, such as stated gross income, monthly payments, or the
like. This screen can also be configured to allow information to be
entered directly from a paystub and calculated then matched against
the criterion of the lender/dealer available considerations
[0046] The method advances to block 324 and includes the step of
the credit and loan processor 210 reviewing the applicant's stated
income against the applicant's stated debt and establishing a debt
to income ratio for the applicant 202. The credit and loan
processor 210 than compares the applicants debt to income ratio
against a particular lender's 220 predetermined debt-to-income
criteria to initially determine the credit worthiness of the
applicant 202. If should be appreciated credit worthiness is
initially evaluated based on debt to income ratio, and that the
credit report for the applicant has not yet been pulled. Since most
declined transactions are due to income, the credit application is
denied early and reduces cost to the lender.
[0047] If the applicant's debt to income ratio does not meet the
predetermined debt to income criteria, the method advances to block
326 and the loan is denied. At this point, the applicant 202 may
locate a co-applicant, and the method begins again in block 302
with the step of prescreening the applicant 202 and the
co-applicant. Co-applicants may be pre-qualified using the
prescreen to insure that the co-applicant is likewise
pre-qualified. Alternatively, if the applicant passed the
prescreen, a different loan transaction type or tier or
lender/financial source may be selected and the method continues to
pre-qualify the applicant.
[0048] If the applicant's debt to income ratio meets the
lenders/dealer's criteria, the method advances to block 328. In
block 328 the loan application continues and the seller is provided
with predetermined loan information. Referring to FIG. 3f, the user
may be provided with a page describing loan information, such as a
Cascading Tier Sheet. The Cascading Tier Sheet includes details
regarding each tier such as rate, term, fees, discounts, advances,
stipulations, advance amounts, down payment requirements or the
like, for a particular product. Advantageously, the seller may
review the details of potential approvals to make sure that the
transaction will be feasible versus just sending the file to group
of lenders at one time or in a "shot gun" approach. This eliminates
the need to unnecessarily pull credit reports, which is costly for
the lender and could impact the applicant's credit rating. Thus,
the seller 204 can establish its own underwriting guidelines if the
situation warrants.
[0049] The method advances to block 330 and includes the step of
the seller 204 selecting the loan structure and tier. Referring the
FIG. 3f, an example of a page for selecting the tier is
illustrated. If the loan is declines, the seller may select the
next tier and continues.
[0050] In the example of a loan for an automotive vehicle, the
seller may enter the potential Vehicle Identification Number, and
the credit and loan processor may look up additional information
regarding the potential vehicle from another entity and include
that information in the loan application. Such information may
include vehicle year, make, model, mileage or the like. The ability
to auto fill information may eliminate errors due to manual data
entry.
[0051] The methodology advances to block 332 and the applicant's
loan transaction application is formally processed by the credit
and loan transaction processor 210. Referring to FIG. 3g, an
example of a page for structuring the transaction is illustrated.
To process the loan, the credit and loan processor pulls the credit
for the applicant. The credit history of the applicant, including
credit score, may be obtained from one of the recognized credit
reporting agencies, such as Transunion or Equifax or the like. The
credit and loan processor 210 may evaluate the credit worthiness of
the applicant 202 by matching the applicant's credit data, such as
credit history, credit score, debt to income ratio or the like
against a particular lenders/dealer's buying and underwriting
criteria.
[0052] If determined that the applicant 202 does not qualify for
the loan, the method advances to block 334 and the application is
denied. The credit and loan transaction software program may
automatically generate an adverse action letter for use as
applicable by the seller 204. Alternatively, the seller 204 may
select another loan tier for consideration. Advantageously,
potentially adverse transactions are not presented to the lender,
which improves the lender's "look to book".
[0053] If it is determined that the applicant 202 does qualify for
the loan, the method advances to block 336 and the application is
pre-approved. For example, the lender/dealer/financing source 220
may assign a payment call and/or structure along with a loan
program and tier assignment. Advantageously, the credit and loan
transaction processor 210 has made an initial credit decision
without pulling credit from a credit reporting agency and actual
credit is pulled only at the time if and when the debt-to-income
passes the predetermined rules and the transaction has been
accepted and purchase decision finalized. The method advances to
block 338 and the seller 204 continues with preparing the
pre-approved loan documentation for the particular
lender/dealer/financing source 220.
[0054] The method advances to block 350 and an automated loan
transaction structuring tool is implemented for structuring the
transaction. The method advances to block 352 and the seller 204
enters predetermined information to complete the loan application.
For example, the seller 204 may be presented with a screen on the
display device for entering information. Examples of predetermined
information include collateral information along with selling price
of the associated article, down payment amount, tax rate (sales and
use tax up front or included in monthly payments if a lease is
being purchased), other related fees, or the like.
[0055] The method advances to block 354 and the credit and loan
transaction processing software program automatically structures
the deal. The credit and loan transaction processor may notify the
seller 204 of any adjustments that may need to be made to the
transaction to comply with any predetermined
lender/dealer/financial source guidelines. The method may advance
to block 356 and the seller may be provided with a display screen
illustrating available additions to the loan transaction
representing ancillary products. Examples of ancillary products
include, but are not limited to, extended service agreements,
insurance, warranties or the like. Any pricing, terms or other
information associated with the ancillary product will be provided
to the seller and applicant. If selected, such ancillary products
are included with the transaction. Ancillary products and related
contract forms for products may be stored and accessible through
the credit and loan transaction processing software program and not
called through a series of API's as is presently done.
[0056] The method advances to block 358 and includes the step of
finalizing the loan transaction structure and verifying compliances
with the predetermined lender/dealer guidelines and other rules
such as Annual Percentage Rate and Taxes. The seller, credit and
loan transaction processor or lender/dealer may perform such
verification.
[0057] The method advances to block 360 after compliance is
confirmed, and the step of generating the loan funding package is
performed. For example, the seller 204 may select a generate
contract module. At this point the applicant/buyer 202 completes a
detailed credit application and other information specific to a
given lender/dealer and transaction. Alternatively, the loan forms
associated with the funding package can be executed in a
conventional manner with the lender for funding purposes.
[0058] If the generate contracts module is selected, the-method
advances to block 362 and the loan transaction package is stored
under a "Documents" tab in the credit and loan transaction
processing software program 214. Access to the funding package may
be password protected to offer security to the applicant, seller or
lender/financing source. The seller 204 continues to process the
loan transaction. The seller 204 may electronically provide
additional information to the lender/financing source as necessary,
and the additional information is automatically associated with the
appropriate financing package for the transaction. The method
advances to block 364 and includes the step of the seller 204
monitoring the process of funding the loan by accessing an
electronics funding verification page maintained by the credit and
loan processor 210. An example of a page illustrating electronic
funding verification is illustrated in FIG. 3h. The lender may
update the status of due diligence of the funding package and may
provide the seller any status. The method advances to block 366 and
the seller 204 is funded. If there is a problem, such as with the
provided information, the seller may not be funded, but may send
the transaction to another lender/financial source. The method may
advance to block 368 and include the step of uploading the
funding/credit sale package to a loan servicing entity or financing
source. The method advances to block 370 and the transaction is
complete.
[0059] The credit and loan transaction processing software program
may provide additional features, such as an electronic signature
for all documents. The loan transaction paperwork may be maintained
in an electronic file associated with the transaction. Reports may
be available at any time. It is contemplated that the particular
steps described with respect to the method may be implemented in
another order. Referring to FIG. 3i, a page illustrating a notes
section is provided. The notes section allows for two-way
communication between the seller, credit and loan processor and
lender/financing source. The notes are maintained with the
electronic file associated with the transaction. Referring to FIG.
3j, a page illustrating an example of administrative functions is
illustrated. The seller 204 may control who has access to the
credit and loan transaction software program. Referring to FIG. 3k,
a page illustrating an example of adding products or tiers is
illustrated. The financial source/potential assignee may have
several products or tiers that they are willing to consider for
possible purchase. The credit and loan transaction processor may
change products according to a particular need, such as customize
for a particular state. Referring to FIG. 3l, a page is illustrated
demonstrating how the credit and loan transaction processor may add
lenders, adjust tiers, insert pre-screen questions or documents
that are specific to a type of transaction. Further, ancillary
products and advance amounts for each may be added. Referring to
FIG. 3m, a page illustrating a database for credit decision rules
resides within the credit and loan software program. Credit
decision rules are maintained for a particular lender/dealer and
are applied in analyzing a particular transaction.
[0060] The system and method of the present innovation can be
utilized in numerous preferred embodiments in order to provide a
vast array of financial and financial-related services for any one
or more of the various parties or entities described herein. While
the embodiments may be described with regards to utilization by a
particular party or entity, it is important to note that any of the
parties and/or entities described herein may utilize the present
innovation in the same, similar and/or analogous manner.
[0061] In an alternate embodiment, referring to FIGS. 3A through
3D, there is disclosed a flowchart illustrating herein an expedited
direct and/or indirect application approval or pre-qualification
and processing related to purchase of goods, services or programs.
The method is implemented using a custom designed lender software
program that incorporates lender/dealer/financing source-specific
modules for the seller 404 or lender 420 or other entity 424.
Advantageously, the modules may be programmed for complete
automation. Examples of seller 404 selectable modules includes
custom templates for prescreen, debt-to-income calculations, credit
underwriting, or the like. Another example of a module is a
security module, such as for assigning user IDs and passwords.
[0062] Examples of customized lender/dealer/financing
source-specific modules or components may pertain to the following:
originations, credit, automatic decisions, automatic structure,
electronic ID and signature, automatic contracting, electronic
funding verifications, item valuations, full servicing or back up,
portfolio sales, electronic search features to locate applicants,
automatic status updates, reports including real-time reports,
built-in email, text, and messaging, or the like.
[0063] The method may be utilized with any type of transaction. In
a non-limiting example to be described, the transaction is a loan
for the sale of a vehicle. In such an example, the applicant 402 is
a vehicle buyer and the seller 404 is an automotive dealer.
However, the method is applicable to any transaction for value.
[0064] The modules can be implemented in a user selectable manner.
The method includes various steps such as providing at least one
processing software program resident on a credit and loan
transaction processor computer having a server and a data storage
device, the processing software program having or accessing at
least one seller-selected consideration criterion. As used herein,
the term "consideration criterion" is defined as at least one
factor a lender/dealer or lending institution identifies as
relevant to ultimate awarding of a consumer loan. Non-limiting
examples of consideration criteria include debt-to-income ratio,
payment-to income, deal structure, loan-to-value and the like.
[0065] The method also includes the step of populating
predetermined applicant identification information fields resident
in the software with application-relevant information using an
input device and transmitting the application-relevant information
to the credit and loan processor computer. The population step can
occur by any suitable manner as by manual input by either the
seller or applicant as described previously.
[0066] Once the applicant identification fields resident in the
processing software program have been properly populated, the
application-relevant information can be verified by the processing
software program. Where desired or required, the processing
software can be configured to provide output identifying improperly
populated identification fields and allowing the program to be
restarted once the input has been correctly entered. The processing
software program can be configured to generate at least one
verification result command. The verification result command can be
one of either a computer-generated verification signal or a
computer generated non-verification signal. Where desired or
required, the non-verification signal can be accompanied by
computer generated diagnostics instructing and/or identifying
population deficiencies so that the input can be corrected.
[0067] Upon receipt of confirmation of computer-generated
verification, the application-relevant information can be analyzed
against pre-qualification parameters that are either resident in
the processing software program or can be accessed by the
aforementioned program. In the embodiment depicted, the
qualification parameters can include at least one of the following
various pre-screen questions as determined by the financing
source/lender or the seller/dealer. The results of the analysis can
be translated into at least one output solution that can be
employed in formulating the transaction solution.
[0068] The method disclosed herein can also include the step of
classifying the inputted transaction data as either a direct or
indirect transaction. The classification step can be accomplished
by any suitable means. In the embodiment depicted in FIG. 4,
classification is accomplished by seller input through the suitable
communication device. In certain embodiments, input can be
accomplished by using a suitable user prompt such as a radio button
on an output screen. It is also within the purview of this
disclosure that the classification step can be accomplished in
whole or in part by interrogation of the inputted material to
determine the nature of the transaction being devised.
[0069] In situations where the classification is a direct
transaction the program triggers a series of steps that result in
the creation of a direct credit application between an application
who wishes to buy given goods, products or services. As used
herein, non-limiting examples of products, goods and services that
can durable goods such as moving vehicles (cars, trucks, off-road
vehicles, maritime vehicles, air craft--both private and
commercial), fixed appliances (household appliances, commercial
apparatus etc. both commercial and private), various products
including but not limited to extended warranties, etc.
[0070] In situations where the transaction is classified as an
indirect transaction such as a credit sale, such classification can
result in at least one command step that characterizes the
seller/dealer as the creditor for purposes of the transaction. The
method or process disclosed herein includes additional steps such
as processing applicant/buyer-relevant information against one or
more seller-selected consideration criteria resident in or
accessible to the processing software program and generating at
least one output solution and based on the generated output
solution, ultimately generating at least one applicant-related
document.
[0071] The applicant/buyer-relevant information can include various
identification data such as name, address etc. In the process
disclosed herein, applicant-relevant information also may include
at least one factor that can impact loan repayment risk assessment.
Non-limiting examples of applicant-relevant information include
data such as applicant income, debt obligations etc. This
information can be applicant/buyer-provided and even
applicant/buyer inputted if desired or required. The
applicant/buyer-relevant information can consist in whole or in
part of material or information that is derived from various
inputted data, directly or algorithmically. The inputted data can
be supplied variously by the applicant or other sources. The
program can include additional steps of input verification as
desired or required. Input verification can be accomplished by
presentation of indicia such as paycheck stubs and the like. The
program can include steps and modules for input and population of
facsimiles of such documents. Alternately, the program can include
suitable commands to prompt the seller to input affirmation to
suitable inspection queries.
[0072] "Consideration criteria" as that term is used can be defined
as one or more factors relevant to the ultimate successful
consummation of a transaction between the seller/dealer and the
lender/potential assignees. These consideration criteria can
include, but are not limited to, at least one of debt-to-income
ratio for the relevant purchaser, loan-to-value ratio for the asset
to be purchased. It is to be understood that consideration criteria
can be one or more of the following: information provided or
derived from specific lender/financing source requirements of
potential assignees, information derived from seller underwriting
requirements, as well as other sources. The consideration criteria
can populate a decision library.
[0073] The processing program and method disclosed herein can be
employed to produce at least one output solution which, at minimum
is based upon a comparison and analysis of the applicant-relevant
information with the consideration criteria. In specific
embodiments of the method and program disclosed herein, the program
can have modules to facilitate seller selection of lender/dealer
consideration criterion. Thus the program is configured to allow
the seller to select considerations to associate with. This can be
accomplished by any suitable means. Seller selection commands
prompt the program to access lender/dealer populated data to
assemble seller-specific consideration criteria to which the
applicant-relevant information can be evaluated to generate the
output solution. The output solution may include one or more lender
packages associated with a given lender or lenders who would
consider the terms of the proposed applicant-seller transaction. It
is to be understood that in certain situations, there will be no
lenders who find the proposed transaction acceptable. In such
situations, the seller/dealer may take one or more of actions at
the seller's discretion including but not limited to: terminating
the sales process, querying lenders outside the initial
seller-selected lender pool, and/or reconfiguring the transaction
to increase likelihood of successful outcome. It is within the
purview of this disclosure that the program and method disclosed
herein can include and access suitable solution outcomes to suggest
modifications to the proposed transaction that might increase
likelihood of successful outcome. It is to be understood that
verification may be accomplished by other pathways in certain
embodiments of the invention disclosed.
[0074] It is contemplated that, in certain embodiments, the program
and process modules employed for dealing with an indirect
transaction may be similar to the process described previously in
conjunction with FIG. 2. Referring now to FIG. 4a, distinctions and
elements relevant to the indirect loan transaction programming and
processing embodiment will be discussed. In the process and program
configured to process indirect loans, the program will include a
step module at reference numeral 301 which permits selection or
determination of the transaction type. In addition to the direct
and indirect transactions that have been described previously,
other transaction types can be designated. Non-limiting examples of
such types are retail transactions, lease transactions, balloon
loans, BHPH type loans etc. The program and process that is
outlined in FIG. 2a steps like those at reference number 312 are
directed to direct loan transactions and can be bypassed in
indirect loan transactions. It is contemplated that the privacy and
other pertinent notices may still be delivered to applicants
through the system.
[0075] In indirect loan transactions such as credit sales
transactions, the process and program can be configured to
populate, issue and maintain privacy and appropriate privacy
notices directly from the platform once the information about the
applicant is obtained as at reference numeral 303. Where desired or
required, the privacy notice can also include the necessary
consents to pull the applicant's credit history. The program can
trigger generation of an initial applicant credit report on behalf
of the seller. The credit report can be used together with any
applicant-relevant information that has been gathered by the seller
to characterize the risks associated with the potential transaction
and to identify one or more lenders who would be available and
willing to consider the assumption of this potential debt
obligation proposed between the applicant and the seller upon
completion of due diligence and internal underwriting. At any time
that the inputted information produces an adverse risk conclusion,
the process and program can generate informational document(s) that
can include communications such as risk/based pricing/adverse
action letters as at reference numeral 307. The platform and
process can be configured to assess for compliance procedures as
necessary or required as at reference numeral 309.
[0076] The platform and process as described and disclosed herein
provides a method and process that allows consumer applications and
potential transactions to be verified and evaluated by
lenders/assignees who may be interested in obtaining the debt
obligation in a manner that eliminates the need for the those
lenders/assignees having to go to the expense and effort of pulling
credit reports for multiple low-value potential buyer/applicants
and underwriting transactions they may not receive from a seller
due to shot gunning application process. It is also contemplated
that the program and method disclosed herein can be configured so
as to provide the seller/dealer and financial source/lender with a
degree of confidence that a transaction or transactions can be
underwritten or transferred at a rates and risk levels suitable to
the parties involved. Furthermore, where desired or required, the
program and platform can be configured to provide communication
channels between the lender and the seller/dealer to provide
clarification on classes of transactions or on individual
transactions themselves and can update the basic program to
implement the additional learnings derived from the
clarifications.
[0077] Many modifications and variations of the present disclosure
are possible in light of the above teachings. Therefore, within the
scope of the appended claim, the present disclosure may be
practiced other than as described. The description of the invention
is merely exemplary in nature and, thus, variations that do not
depart from the gist of the invention are intended to be within the
scope of the invention. Such variations are not to be regarded as a
departure from the spirit and scope of the invention.
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