AU2007203120A1 - A Method and System for Providing Financial Services - Google Patents

Description

A Method And System For Providing Financial Services Field of the invention [001] The present invention relates generally to methods and systems for providing financial services relating to financial instruments, such as loan contracts, insurance products, mortgages, lines of credit, accounts, credit cards, etc. More particularly, the present invention relates to a method and system for providing customised terms for a mortgage loan based on customer needs, preferences, credit history, and financial circumstances.

Background of the invention [002] Typically, customers borrowing money to purchase a property apply for a loan in one of several ways. For example, a borrower may apply through an individual representing a lender or may submit an application electronically over the Internet. Loans are available from many different sources, such as traditional banks, private and commercial money lenders. In addition, a class of loan brokers, often referred to as "loan originators", has emerged to aid borrowers in finding and obtaining suitable loan product. Loan originators (eg, mortgage brokers) act as intermediaries, assi tng in negotiating contracts between borrowers and lenders.

They take loan applications and forward them to affiliated mortgage lenders for final approval, funding and servicing.

[003] Generally, different borrowers are in different financial situations and have different financial needs. Typically, lenders and loan originators offer a wide range of home loans depending upon the type of loan required, such as residential home loans, investment loans, lines of credit, and so on. Normally, lenders and/or mortgage brokers attempt to select the best loan product for the customer, considering all relevant aspects of the customer's needs and matching them to the various financial products that they have at their disposal. These aspects range from the borrowing capacity of the customer and acceptable income types through to the size and type of property that lenders will accept as security.

[004] There are also many different variables or negotiable terms associated with each loan, such as interest rate, loan period, etc.

[005] In most cases, a profiling method based on the underwriting criteria and policy rules of the lender is used to determine whether the borrower meets the loan acceptance criteria of the lender. A detailed profile of the borrower is required because factors such as age, employment,

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financial history, the borrower's credit rating and so on, can have a significant impact on the cost or even qualification for a loan. Typically, a credit report and related credit score will be S evaluated along with the borrower's debt-to-income ratio to evaluate credit worthiness.

[006] In general, the better the credit rating, the less down payment deposit) will be required and the lower the interest rate will be. For example, some lenders provide professional packages offering substantial discounts and special benefits (eg, redraw facility, offset accounts, internet access, credit cards linked to the loan, etc), but are only available to those who satisfy specific criteria. The key criteria for most professional packages are that the mortgage be in excess of a specified amount (eg, $150,000) and that the borrower earns more than $50,000 per annum. The benefits vary between lenders, but in general such benefits can include interest rate discounts of between 0.50 and 0.75 per cent for the life of the mortgage, lower fees and discounts on other bank products.

[007] In general, customers with a good credit rating have a wider choice of home loan products. Moreover, such a customer may even choose to split his or her borrowings between one or more loan types to get an appropriate balance of certainty and flexibility.

[008] Some lenders have more flexible lending policies and offer a complete range of home loan products to borrowers with all types of financial circumstances, including those who are self-employed, have an irregular employment history or who have a poor credit rating (eg, exbankrupts, etc).

[009] As a result, a borrower with a low credit rating may be able to get a home loan, however the poorer the credit rating, the more down payment will be required and the higher the interest rate will be.

[010] There are ways in which the borrower can improve his or her credit rating and therefore improve his or her financial future. This includes taking out credit and ensuring that the money borrowed are repaid responsibly and on time, continuing to pay other forms of credit and bills on time and for the amounts requested.

[011] Once credit rating starts to improve, the chances of getting future finance will also improve. As a result, the customer may become eligible for a home loan with a lower interest rate. Such a customer may wish to refinance his or her home loan to take advantage of the improved credit rating.

[012] Similarly, a customer who bought his or her home when rates were higher might want to consider re-financing the home loan and/or obtaining different loan terms. Likewise, during the term of a mortgage, many other circumstances may change on a regular basis (eg, income, loanto-value ratio, etc). As a result, the customer may want to take action to get advantage of more favourable financial circumstances.

[013] If the customer decides to refinance, the process of refinancing will be similar to what the customer went through in obtaining the original home loan. The customer is likely to encounter substantially the same procedures and the same types of costs the second time around. The 0 process of refinancing a loan can be complicated, time consuming and expensive because of the great number of variables regarding the loan, the lender, the borrower, and the lenders' mortgage insurer.

[014] In some circumstances refinancing can be worthwhile, in particular when the relatively high costs of refinancing can be balanced against the savings arising from a lower interest rate.

For example, if the current interest rate on the mortgage is at least two percentage points higher than the prevailing market rate, the customer is likely to realize fully the savings from a lower interest rate within two years, given the costs of the refinancing.

[015] In addition to large transactional costs relating to the re-financing of mortgage, the refinancing process is likely to have an adverse effect on the lender since the customer is likely to refinance his or her mortgage with a different lender. As a result, customer loyalty is undermined, and the current lender is forced to spend significant resources (eg, advertising expenses) obtaining a new customer.

[016] Any reference herein to known prior art does not, unless the contrary indication appears, constitute an admission that such prior art is commonly known by those skilled in the art to which the invention relates, at the priority date of this application.

Summary of the invention [017] The present invention provides a method of providing financial services by a lender to a borrower, said financial services relating to a loan secured by a mortgage over a property, the method including the steps of: updating one or more borrower attributes to modify a borrower profile; assessing the modified borrower profile against one or more loan acceptance criteria; when the borrower meets said one or more loan acceptance criteria, modifying one or more loan parameters, said modification being based on said one or more borrower attributes.

[018] Preferably, said one or more loan parameters are modified to provide progressively more favourable loan parameters.

[019] The method can further include the step of charging a service fee for the modification of said one or more loan parameters.

C, [020] The present invention also provides a method for providing financial services by a lender to a borrower, said borrower having one or more borrower attributes, said lender being S associated with a financial product, said financial product being offered to any eligible borrower, regardless of the borrower's borrower attributes, said method including the step of structuring the financial product so that the borrower attributes determine, at least in part, one or more product parameters applicable to said financial product.

[021] The present invention also provides a method for providing financial services by a lender to a borrower, said financial services relating to a loan, said method including the step of entering an agreement with said borrower, said agreement including an obligation by the lender to periodically update at least one borrower attribute and reassess eligibility for modification of one or more loan parameters, said modification being based on said updated borrower attribute.

[022] Further features of the present invention are described in the claims.

Brief description of the drawings [023] An embodiment or embodiments of the present invention will now be described, by way of example only, with reference to the accompanying drawings, in which: [024] Figure 1 is a schematic diagram showing the overall method of the present invention; [025] Figure 2 is a block diagram of a system for providing financial services in the mortgage industry; and [026] Figures 3 and 4 shows a flowchart demonstrating a procedure for generating and modifying loan parameters for a Borrower.

Detailed description of the embodiment or embodiments [027] The method for providing mortgage-related services described in the present invention is primarily intended for use by a borrower wishing to obtain a home loan to finance a purchase of a residential property.

Mc [028] Figure 1 depicts the overall method of the present invention and identifies the S major participants of mortgage-related financial services, namely a borrower 10, a lender 12, and a lenders' mortgage insurer 14.

[029] The borrower 10 has a borrower profile represented by a set of borrower attributes including but not limited to: the borrower level of credit impairment (eg, a borrower's credit rating), loan-to-value ratio, loan size, income, credit history, employment history, and any other factor which would normally require distinct loan products to be offered to different types of borrowers (referred to hereinafter "Borrower Attributes").

[030] The lender 12 is an entity that provides mortgage related services to the borrower The term "lender" as used herein should be interpreted broadly to cover mortgage lenders that actually supply the money to make a mortgage (eg, banks 16); mortgage companies 18 writing mortgages and financing them through a securitisation vehicle; loan originators mortgage brokers 22, etc. Mortgage lenders take applications, process the loan, underwrite the loan, fund the loan, and collect mortgage payments. Loan originators 20 originate residential and commercial mortgages. They do so either on behalf of an affiliated mortgage lender, or in their own right, and sell them to an issuer of the debt or equity instruments.

[031] The lenders' mortgage insurer 14 provides lenders' mortgage insurance (LMI) to the lender 12. This is to protect the lender 12 in the case of a default from the borrower 10, it does not release the liability of the borrower where recourse will be sought from the lenders' mortgage insurer. Typically, when the loan to value ratio is greater than 80%, LMI is usually required by the lender.

[032] The lender 12 provides one or more financial products 24. In a preferred embodiment, the lender 12 offers a single mortgage product 24 (referred to hereinafter as "Allmortgage Product") which may be taken up by any eligible borrower 10 providing the Borrower Attributes meet certain minimum eligibility criteria.

[033] The Allmortgage Product 24 has one or more variable parameters: an interest rate, whether the interest rate is fixed or variable, the term of the loan, fees, credit requirements, loan

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size, loan-to-value ratio, and so on. The parameters of the Allmortgage Product 24 can be discrete or continuous or hybrid with both discrete and continuous variables.

[034] The Allmortgage Product 24 is structured so that the Borrower Attributes determine, at least in part, one or more parameters of the Allmortgage Product. In a preferred embodiment, the Allmortgage Product is structured so that the Borrower Attributes determine, whether in part or in whole, the rate of interest offered to the borrower [035] A method of providing mortgage-related financial services according to the present invention includes the steps of collecting Borrower Attributes and entering the Borrower Attributes into a borrower database to thereby create a borrower profile. The borrower profile is then compared against the loan acceptance criteria of the lender to determine the eligibility of the borrower for the Allmortgage Product 24. If the borrower is eligible for the Allmortgage Product, the Borrower Attributes are used to determine one or more loan parameters (eg, an interest rate) applicable to the home loan.

[036] Other parameters of the loan contract, such as the basic structure of the loan and underlying loan and security documentation are common to all Borrowers regardless of the Borrower Attributes.

[037] During a borrower's term of a mortgage loan, Borrower Attributes may change.

In particular, the borrower's credit rating may rise. Such a change in borrower's circumstances will generate a corresponding change in the borrower profile, which in turn will cause a change in the applicable interest rate. As a result, the borrower will be able to obtain progressively more favourable loan terms resulting in considerable savings without the need to pay the large transaction fees associated with the re-financing of the mortgage.

[038] Where a borrower's Borrower Attributes change during the term of the loan and where the loan is not covered by lenders' mortgage insurance (LMI), the method of the present invention allows the commencement of lenders' mortgage insurance coverage on the loan based on the new Borrower Attributes, without the need for the loan to be refinanced with a new loan contract.

[039] Similarly, during the term of mortgage, mortgage rates may rise or fall, or both.

Such changes in the financial conditions of the market can also be incorporated within the Allmortgage product in the normal way.

[040] It will be appreciated by those skilled in the art that the method of the present invention is not limited to such loan parameters as interest rates or LMI but can cover many other borrower-specific loan parameters and or features (eg, loan-to-value ration, loan size, the availability of a redraw facility, etc).

[041] The above-described steps can be performed on a periodic basis. For example, the S lender 12 can contact the borrower 10 on a periodic basis to monitor the current circumstances of the borrower. Alternatively, the lender can continually or periodically monitor the credit history of the borrower via the Borrower's payment history on the Allmortgage Product loan and or other available information to identify whether the updated Borrower Attributes make the Borrower eligible for more favourable loan parameters. Further or in the alternative, the borrower 10 may initiate an update of his or her Borrower Attributes by contacting the lender 12 (eg, via an internet based application).

[042] In addition, the borrower 10 can modify his or her choice of loan features in a similar manner.

[043] Illustrated in Figure 2 is a database system 100 according to one embodiment of the present invention. The database system 100 includes one or more data input means 102, 104, 106 adapted to collect information from a variety of sources, such as borrowers 10, lenders 12, and lenders' mortgage insurers 14.

[044] The borrowers 10 are presented with their data entry choices at a borrower interface means 108. The borrower interface means can include data entry devices operable by borrowers for creating, modifying, and communicating home loan requirements to the lender 12.

[045] The borrower 10 can use an internet-based application to enter data (eg, Borrower Attributes) into a borrower database 110. Alternatively, the Borrower 10 can provide his or her Borrower Attributes via the Lender, step 112 (an application form) or step 114 (the lender's interface).

[046] The system 100 further includes a lender database 116. The financial data stored in the lender database 116 include the financial product parameters/conditions of the Allmortgage Product (eg, fixed and variable interest rates, loan sizes, loan-to-value ratios, redraw facilities, repayment holidays, penalties, etc).

[047] The borrower 10 can select a set of features associated with the Allmortgage product. To this end, the lender 12 and or the borrower 10 enters onto a form the details of the financial product requirements such as the type of finance (eg, a Home Loan), loan size, deposit, top-ups, redraw facility, repayment holidays, preferred method of repayment (eg, direct debit), limitations on products (eg, ongoing fees, application fee or establishment fee, etc). The data entered by the borrower and or the lender are stored in the borrower database 110 which contains records for each borrower.

[048] Similarly to the borrower database 110, the lender database 116 is connected to lender interface means and entry devices 104 operable by the lender 12 for creating, modifying, and communicating financial product characteristics/conditions (identities of financial products, commissions, interest rates, terms of loans, ongoing fees, valuation fees, application fees, redraw facility, repayment holidays, pay per use features, top-ups, etc) to the database system 100.

[049] The database system 100 may further include a lenders' mortgage insurer database (not shown) for storing financial data relating to lenders' mortgage insurance.

[050] It will be appreciated by those skilled in the art that the databases 110, 116, and the lenders' mortgage insurer database can be integrated into a single database to enable consolidated reporting, if necessary.

[051] The Allmortgage database system 100 further includes a computer processor, a data storage/memory holding the above-mentioned databases in a form readable by the computer processor and a software tool to be used in the system of the present invention.

[052] The software described herein is also stored in the data storage/memory, and is also executed on the database computer system 100.

[053] The computer database system 100 receives the Borrower Attributes and automatically saves the Borrower Attributes in the borrower database 110. The Borrower Attributes can be subsequently used to create a borrower profile.

[054] The information provided by the borrower forms search terms for querying the lender database by using the software tool to automatically select one or more parameters of the Allmortgage Product matching the Borrower Attributes. When the financial product database is queried, it returns a list of loan parameters applicable to the home loan (eg, an interest rate, the availability of lenders' mortgage insurance, etc).

[055] The software used in the database system 100 can be used to calculate a wide range of financial product parameters relating to the Allmortgage product (eg, a loan term, repayments, a "true" interest rate of the Allmortgage product calculated with reference to the fees applicable to the Allmortgage products, etc).

[056] Where a borrower's Borrower Attributes change during the term of the loan, the system of the present invention permits modifications of the customer profile by updating the S Borrower Attributes (eg, a borrower's credit rating). In addition, the system 100 allows changes in customer preferences relating to the Allmortgage Product (eg, redraw facility, repayment holidays, etc). As a result of such modification of the customer profile, the software means used in the database system 100 will assess the modified Borrower Attributes against the Borrower classification criteria and if appropriate, generate a new updated set of parameters relating to the home loan. Likewise, the software means may indicate the availability of additional features (eg, redraw facility, repayment holidays, etc), the commencement of lenders' mortgage insurance coverage on the loan based on the new Borrower Attributes, and so on.

[057] When a borrower wishes to update his or her Borrower Attributes, the borrower can log on to the borrower database 110 to update and or modify his or her database record.

Alternatively, the borrower 10 may supply his or her data via the lender 12. The system 100 then uses the data provided by the borrower to update the borrower's profile. The system 100 then determines whether or not the borrower is entitled to more favourable loan conditions (eg, a lower interest rate). If the borrower satisfies the eligibility criteria for a lower interest rate, the system then notifies the borrower of a new interest rate available to the borrower. The system then calculates new monthly/fortnightly/weekly payments and/or other parameters applicable to the home loan; and determines the cost of the transaction, i.e. the fees payable to the lender, if any.

[058] The system may also allow the commencement of LMI coverage on the home loan.

[059] Illustrated in Figs. 3 and 4 is a flowchart showing the operation of the present invention. The process starts, step 200, when the lender receives a borrower enquiry relating to the Allmortgage Product. The lender collects Borrower Attributes from the Borrower, step 210.

If the Borrower Attributes do not satisfy minimum eligibility requirements for the Allmortgage Product, step 215, the lender declines the loan, step 220. This ends the process.

S [060] If the borrower is eligible for the Allmortgage Product, the lender assesses Borrower Attributes/ Profile against Borrower Classification Criteria, step 230. As a result of such assessment, the lender calculates Loan Commencement Parameters, ie a set of parameters applicable to the loan at its commencement, step 240. The lender then makes an offer to the Borrower, step 250. If the Borrower accepts the offer, the lender processes the loan application and issues a set of documentation relating to the loan, the mortgage, lenders' mortgage insurance, etc, step 250.

[061] Where the borrower's Borrower Attributes change during the term of the loan, the lender makes a reassessment of Borrower Attributes/Profile against Borrower Classification Criteria to determine whether the Borrower is eligible for more favourable loan parameters, step 260. If the lender determines that the Borrower is not eligible, step 270, the loan continues unchanged, with periodic reassessment.

[062] If the Borrower is eligible for more favourable loan parameters, the lender offers a set of revised loan parameters, step 280. If the Borrower accepts the revised loan parameters, the Allmortgage Product is modified accordingly, step 290. If the Borrower declines the offer, this end the reassessment process, and the loan continues unchanged, step 270.

[063] The operation of the present invention in relation to an improved credit score is as follows. In general, there are five significant aspects influencing the calculation of the borrower's credit score: payment history, amounts the borrower owes, credit history length, credit types and how they are used, and new credit inquiries.

[064] In the following example Borrower A has an initial credit score of615 and the interest rate applicable to his home loan is relatively high (eg, 9 Assume that the updated database record associated with borrower A demonstrates a significant improvement both in terms of the payment history and the credit history length. As a result, the current credit score of the borrower A is 720, and borrower A will therefore be able to receive better mortgage financing options and interest rates from lenders and brokers.

[065] The system of the present invention calculates that the new interest rate applicable to A's home loan can be as low as The system further calculates that fees payable to the lender by borrower A is AU$700. The customer then agrees to pay to the lender a fee of $700.00.

Upon receiving the fees from borrower A, the lender applies the new interest rate to A's Allmortgage Product.

[066] In other embodiments of the present invention, a set of discrete criteria can be used (eg, no credit defaults for 2 years, 3 years, 4 years, income/ repayment ratio 3, 4, etc).

[067] The above example clearly demonstrates that the new method for providing S mortgage-related services completely and effectively removes financial incentives for a borrower to re-finance the home loan with a different lender. The above-mentioned changes in the N, parameters applicable to the Allmortgage Product in fact create a new home loan, without the need for the loan to be refinanced with a new loan contract.

[068] As a result, the method and system of the present invention promote customer loyalty and reduce the operational costs of the lender.

[069] Wherever it is used, the word "comprising" is to be understood in its "open" sense, that is, in the sense of "including", and thus not limited to its "closed" sense, that is the sense of "consisting only of'. A corresponding meaning is to be attributed to the corresponding words "comprise", "comprised" and "comprises" where they appear.

[070] It will be understood that the invention disclosed and defined herein extends to all alternative combinations of two or more of the individual features mentioned or evident from the text. All of these different combinations constitute various alternative aspects of the invention.

[071] While particular embodiments of this invention have been described, it will be evident to those skilled in the art that the present invention may be embodied in other specific forms without departing from the essential characteristics thereof. The present embodiments and examples are therefore to be considered in all respects as illustrative and not restrictive, and all modifications which would be obvious to those skilled in the art are therefore intended to be embraced therein.

Claims (25)

1. A method of providing financial services by a lender to a borrower, said financial services relating to a loan secured by a mortgage over a property, the method including the steps (N of: updating one or more borrower attributes to modify a borrower profile; assessing the modified borrower profile against one or more loan acceptance criteria; when the borrower meets said one or more loan acceptance criteria, modifying one or more loan parameters, said modification being based on said one or more borrower attributes.

2. A method as claimed in claim 1 wherein said one or more loan parameters are modified to provide progressively more favourable loan parameters.

3. A method of providing financial services relating to a loan secured by a mortgage over a property, the method including the steps of: collecting borrower attributes; using the borrower attributes to create a borrower profile; modifying the borrower profile by updating one or more borrower attributes; modifying one or more loan parameters, said modification being based on the modified borrower profile.

4. A method as claimed in any one of claims 1 to 3 further including the step of entering one or more borrower attributes into a database. A method as claimed in any one of claims 1 to 4 wherein the steps of the method are initiated by a lender.

6. A method as claimed in any one of claims I to 4 wherein the steps of the method are initiated by a borrower.

7. A method as claimed in any one of claims I to 6 wherein the steps of the method are performed on a periodic basis.

8. A method as claimed in any one of claims 1 to 7 further including the step of charging a service fee for the modification of said one or more loan parameters.

9. A method as claimed in any one of claims I to 8 wherein said borrower attributes include Sone or more of the following: a borrower's credit rating, loan to value ratio, loan size. A method as claimed in any one of claims I to 9 wherein said loan parameter is an interest rate applicable to the loan.

11. A method as claimed in any one of claims 1 to 10 further including the step of obtaining lenders' mortgage insurance coverage on the loan.

12. A method as claimed in any one of claims 1 to 10 further including the step of providing lenders' mortgage insurance coverage on the loan.

13. A method for providing financial services by a lender to a borrower, said borrower having one or more borrower attributes, said lender being associated with a financial product, said financial product being offered to any eligible borrower, regardless of the borrower's borrower attributes, said method including the step of structuring the financial product so that the borrowers attributes determine, at least in part, one or more product parameters applicable to said financial product.

14. A method as claimed in claim 13 wherein said product parameter is an interest rate. A method as claimed in claim 14 wherein said interest rate includes a variable amount.

16. A method as claimed in claim 13 or 14 further including the step of charging a service fee for a modification of said interest rate.

17. A method as claimed in claim 16 wherein said service fee is fixed.

18. A method for providing financial services by a lender to a borrower, said financial services relating to a loan, said method including the step of entering an agreement with said borrower, said agreement including an obligation by the lender to periodically update at least one borrower attribute and reassess eligibility for modification of one or more loan parameters, said modification being based on said updated borrower attribute; and an obligation by the customer to pay a service fee to said lender. S19. A method of providing financial services by a lender to a borrower, the method including O the lender structuring financial product parameters for a financial product to determine an interest rate applicable to the financial product, said determination being based on one or more borrower attributes, the borrower and the lender entering an agreement and Simplementing the subsequent steps of claim 18. A method as claimed in claim 19 further including the step of updating one or more borrower attributes and comparing the updated borrower attribute(s) against one or more financial product parameters.

21. A system for providing financial services relating to a loan secured by a mortgage over a property, said system including: database means for storing a borrower profile associated with a borrower; and means for modifying the borrower profile by updating one or more borrower attributes.

22. A system as claimed in claim 21 wherein said borrower profile further includes one or more loan parameters, said loan parameters including one or more of the following: an interest rate, a redraw facility, a penalty, a fee, a payment period, repayment holidays, lenders' mortgage insurance.

23. A system as claimed in claim 21 or 22 wherein said borrower attributes includes one or more of the following: a borrower's credit rating, loan-to-value ratio, loan size.

24. A financial instrument relating to a loan, said loan having one or more loan parameters, said financial instrument being structured so that at least one of said loan parameters can be modified during the term of the loan, the modification being consequential on a change in one or more borrower attributes. A financial instrument as claimed in claim 24 wherein said loan parameter is an interest rate.

26. A financial instrument as claimed in claim 24 or 25 wherein said borrower attribute is or relates to a borrower's credit rating.

27. A financial computer system for matching a plurality of financial product requests Zprovided by borrowers to one or more parameters of a financial product, said system including: O a computer processor; a financial product database capable of storing financial data in a form readable by said processor, said financial data relating to said one or more product parameters; S- database management tools for use by a lender and or by said borrowers to manage the financial product requests in said database including a tool for creating and Oupdating a borrower profile; financial product management tools for use by said lender to create and modify said one or more loan parameters; a software tool using said financial data, said financial product requests and said borrower profile to determine one or more product parameters compatible with said borrower profile.

28. A system as claimed in claim 27 wherein said borrower profile includes a borrower's credit rating, and said software tool uses said financial data, said financial product requests and said borrower profile to calculate one or more product parameters, said calculation being performed with reference to said borrower's credit rating.

29. A system as claimed in claim 28 wherein said product parameter is an interest rate. In a financial computer system for matching a plurality of financial product requests provided by borrowers to one or more product parameters of a financial product, a method for selecting said one or more loan parameters, said method including the step of calculating a product parameter, said calculation being performed with reference to a borrower's credit rating.

31. A method of using a computer system for selecting one or more product parameters, said method including the steps of: inputting and storing data into the computer system, said data including one or more borrower attributes; using the computer system to create a borrower profile; receiving a borrower request to update said one or more borrower attributes; modifying said borrower profile; using the computer system to calculate said one or more product parameters, said calculation being performed with reference to said borrower profile; and executing the steps of the method for the borrower on a periodic basis.

32. A method as claimed in claim 31 further including the step of determining lenders' mortgage insurance eligibility for the borrower.