WO2000075833A2 - Method and business model for matching mortgage lenders and borrowers - Google Patents
Method and business model for matching mortgage lenders and borrowers Download PDFInfo
- Publication number
- WO2000075833A2 WO2000075833A2 PCT/US2000/015329 US0015329W WO0075833A2 WO 2000075833 A2 WO2000075833 A2 WO 2000075833A2 US 0015329 W US0015329 W US 0015329W WO 0075833 A2 WO0075833 A2 WO 0075833A2
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- loan
- lender
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q30/00—Commerce
- G06Q30/06—Buying, selling or leasing transactions
Definitions
- the present invention relates to matching systems and more particularly to computer implemented methods for loan brokers to match mortgage lenders with borrowers.
- loan brokers thus evolved such that a customer could fill out a single loan application.
- the loan broker would then make a loan request to each lender the broker worked with. But since the loan requests had to be duplicated for each lender, the number of lenders a broker could work with was limited.
- Each loan request typically necessitated its own unique series of phone calls, faxes, messages, return calls, lost faxes, updated rate sheets, etc.
- Each mortgage lender receives many individual loan requests. As with the mortgage broker, each loan request typically necessitated its own unique series of phone calls, faxes, messages, return calls, lost faxes, updated rate sheets, etc. Relatively expensive account executives are needed by the lenders to handle the incoming loan requests prior to a decision or pre-underwriting by a highly paid underwriter. The staffing requirements of lenders is therefore directly related to loan request volume.
- a queue-oriented loan matching system is implemented as a webserver on the Internet.
- Each mortgage loan customer completes only one application for a mortgage broker.
- the Internet is used by such mortgage broker to communicate the loan request to a plurality of mortgage lenders. Filters are used to forward such loan requests only to lenders that want to receive applications from borrowers with particular credit ratings or scores.
- Brokers send loan requests to lenders that meet their product needs.
- Each loan request exists in one of several queues. Depending on the action to be taken, either the broker of the lender will advance a loan request from one queue to the next. The status of each loan request is therefore a function of which queue it has been placed into.
- Each lender generates an individual response to each loan request that the broker can pick and choose.
- the system allows quality control and business management controls to be efficiently and consistently applied.
- Fig. 1 is a functional block diagram of an Internet system embodiment of the present invention for mortgage broker and lenders to process loan requests from borrowers;
- Fig. 2 is a flow chart diagram of a loan-matching process embodiment of the present invention that may be implemented with the system of Fig. 1.
- Fig. 1 represents an Internet system embodiment of the present invention for servicing a mortgage broker and lender community, and is referred to herein by the general reference numeral 100.
- the system 100 comprises a plurality of independent mortgage brokers 101-104 that are connected through a corresponding plurality of Internet service providers (ISP's) 106-109 to a wide area network (WAN) 1 10, such as is best represented by the ubiquitous Internet.
- ISP's Internet service providers
- WAN wide area network
- ISP's Internet service providers
- ISP's Internet service providers
- Each mortgage broker 101 -104 and each mortgage lender 112-116 has a computer network workstation with an Internet browser represented by a display and keyboard 124, a computer 126, and a modem
- a commercial for-profit business 130 has established an Internet presence at a website identified by a uniform resource locator (URL), e.g., "loantrader.com". Such business 130 maintains a network connection 132 with a network server 134.
- a computer 136 is used for network administration, customer and user enrollments and authorization, news, services referrals, etc.
- a computer database 138 is used to store and access lender and broker information, various loan-request queues, electronic forms, credit-rating filter data, statistics, billing data, etc.
- Each independent mortgage broker (W-Z) 101 -104, and each independent mortgage lender (A-E) 112-1 16 is provided with a unique user ID and password after being enrolled as a subscriber.
- the subscribers are billed according to use and/or on a monthly basis and pay the business 130 to continue to have access to "loantrader.com".
- Subscribers are classified as being either brokers or lenders.
- a log-on page at "loantrader.com” requires each subscriber to enter their user-ID, password, and category of lender or broker.
- No specialized software is required at the broker or lender sites other than a standard browser, e.g., INTERNET EXPLORER by Microsoft, NETSCAPE NAVIGATOR by Netscape, etc.
- brokers After log-on, brokers are presented with a "home" page that includes financial industry news items and several navigation buttons. The broker can "click” on any of the buttons listed in Table I.
- BRQ Queue an example of a typical BRQ queue is represented in Table V. Any item in the queue can be clicked on for more detail.
- the BRQ queue gives a realtime display of lender offers to fund that have accumulated for each loan request. The broker is then able to comparison shop and compare the offers when there are more than one for each loan request. The offers will include the terms and conditions that the lender is imposing, and these can be compared on the same display page with what the broker had requested. TABLE V BRQ Queue
- the "Accepted" button on the Broker Home Page If the broker selects the "Accepted” button on the Broker Home Page, then the "Accepted BRQ Queue" is presented, an example of a typical accepted BRQ queue is represented in Table VI. Any item in the queue can be clicked on for more detail.
- the loan requests in the accepted BRQ queue are those that have been proposed b y the lenders and that have been accepted by the broker. Those offers to fund loan requests that are not accepted, are automatically rejected and the lenders making those offers to fund are notified they did not succeed.
- the "Admin Page” is presented which has several buttons that can be clicked, an example of which is represented in Table XII. "Main” will retum to the Lender Home Page. "UW” goes to an underwriter page where authorized underwriters may be added or deleted by the administrator. "LO” goes to a loan officer page where authorized loan officers may be added or deleted by the administrator. "Product” allows a choice of conventional, FHA, VA, and jumbo loans. "Conditions” allows the lender to enter or check off various terms and conditions that will be made for offer to fund for a particular loan request.
- Fig. 2 diagrams a method and business model embodiment of the present invention that is implemented on the computer 136, database 138, and network server 134 (Fig. 1), and is referred to herein by the general reference numeral 200.
- Several queues are maintained by the "loantrader.com” website, and include “open”, “pass”, “pending”, “decline”, “accepted”, etc.
- the process 200 can be described as a queue- oriented loan matching system.
- the process 200 begins with a data input step 202 in which a mortgage broker enters an application's information 204 from a prospective borrower into a new application page 206 displayed on the broker's computer monitor while running an Internet browser and after logging onto the "loantrader.com” website.
- the broker completes a loan request profile, e.g., a "new application", using an electronic form provided.
- a database-record reference is maintained in a "pending" queue 208.
- the broker When the broker is satisfied with the loan request, it is ready to send to a lender.
- a credit-rating filter 212 provides for a screening of the loan requests sent to particular lenders according to a credit-risk score of the borrower and any pre-established credit- risk limits imposed by the lender intended to receive the loan request.
- Various credit-risk scores can be computer generated by conventional programs used by artisans in the financial industry, e.g., FICO, BEACON, IMPERICA, etc.
- the credit-rating filter 212 can be fine-tuned over a link 214 to a corresponding lender's database 216. Such fine- tuning is done according to quality control and business management review of past loan requests that have been accepted or rejected by said corresponding lender or accepted or rejected by a broker after an offer to fund by the lender.
- a step 218 attaches destination addresses and duplicates the loan requests for each appropriate lender. Such addresses are provided by an informational link 220.
- the loan request records are then forwarded over a data link 222.
- a transfer 224 causes the loan request to be registered in a submitted queue 226. As far as the broker can see, such loan request exists now only in the submitted queue 226. From the lender's viewpoint, the loan request will exist only in a new application queue 228.
- a loan-request dispatcher 230 will assign the incoming loan requests from several different and independent brokers to an inbox queue 232 of a particular underwriter or loan officer.
- An underwriter 234 will then act on the loan request. If such action is an offer to fund the loan, terms and conditions are attached and the loan request is transferred to a pipeline-open queue 236. The fact of the favorable action and the offered terms and conditions are communicated over a datalink 238. This forces a transfer of the loan request record at the broker's from the submitted to lenders queue 226 to the broker rate quote (BRQ) queue 240. The offered terms and conditions are appended to the loan request record for the broker's consideration and comparison shopping with any other offers that come in for that particular loan request. If the underwriter 234 decides to refuse the loan request, then the loan request record is transferred to a pipeline-pass queue 242. The lender then waits to see if the broker will accept or reject the lender's offer to fund.
- BRQ broker rate quote
- the loan request with an offer to fund in the BRQ queue 240 is moved to a BRQ-accepted queue 246.
- Such decision is communicated back to the lender over a broker-accepted datalink 248 or a broker- declined datalink 250.
- a broker-accepted decision communicated on the datalink 248 causes the loan request record to be forwarded from the pipeline-open queue 236 to a pipeline-broker-accepted queue 252.
- a broker-rejected decision communicated on the datalink 250 causes the loan request record to be forwarded from the pipeline-open queue 236 to a pipeline-broker-declined queue 254.
- Loan processing can then proceed conventionally.
- the process 200 allows lender management and quality control to have a supervisory monitor 256 in which the loan requests and their associated status and details can b e reviewed in real time. If too many loan requests are being passed on, it may indicate that the filter 212 is sert too loose. A fine tuning signal 258 can be sent to adjust the filter 212. If too few loan requests are being accepted by the brokers, the supervisory step 256 can be used to inspect the terms and conditions being imposed by the underwriter 234. The supervisory monitor 256 allows the lender to remain competitive given the realities of the loan requests that exist and their abilities to attract their target clientele.
- Borrowers can be rated as A, A-, B+, B, B-, etc., credit risks. There credit-risks can be evaluated using numeric scores. Borrowers with FICO, IMPERICA, or BEACON numeric scores over 700 are considered very good. Borrowers with scores under 500 are considered poor risks. Lenders will cater to particular ranges credit-risk borrowers. For example, a certain lender may only accept "A" credit rated borrowers. A credit rating filter 212 is used to screen each loan request so that only A-lenders received loan requests from A-borrowers, for example. The "loantrader.com" website compares a profile of the loan request with individual profiles that have been pre-defined by a select group of lenders.
- the loan request is forwarded by the "loantrader.com” website to each lender's underwriter for which the profile comparison indicates which lender would want to receive the loan request. Each such underwriter makes a decision whether to accept or pass the loan request.
- Each accepted loan request can be tagged with an electronic data interface (EDI) response transmission fee.
- the "loantrader.com” website routes the responses back over the Internet to the respective mortgage broker.
- the broker reviews the loan request responses from the lenders and selects one lender's response, all others are declined.
- Each lender is automatically notified via the Internet as their response is accepted or declined by the broker.
- the "loantrader.com” website notifies a particular lending officer of the acceptance and moves the loan request from the "pending" to the "accepted” queue.
- the broker is notified of such lending officer's contact information.
- the lender then processes the loan using traditional methods.
- the broker next can select title, escrow, and appraisal steps, each with EDI transmission fees.
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Abstract
Description
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Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
AU51791/00A AU5179100A (en) | 1999-06-07 | 2000-05-31 | Method and business model for matching mortgage lenders and borrowers |
Applications Claiming Priority (2)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
US32697299A | 1999-06-07 | 1999-06-07 | |
US09/326,972 | 1999-06-07 |
Publications (2)
Publication Number | Publication Date |
---|---|
WO2000075833A2 true WO2000075833A2 (en) | 2000-12-14 |
WO2000075833A8 WO2000075833A8 (en) | 2001-10-25 |
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Application Number | Title | Priority Date | Filing Date |
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PCT/US2000/015329 WO2000075833A2 (en) | 1999-06-07 | 2000-05-31 | Method and business model for matching mortgage lenders and borrowers |
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AU (1) | AU5179100A (en) |
WO (1) | WO2000075833A2 (en) |
Cited By (8)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
WO2002065351A1 (en) * | 2001-02-12 | 2002-08-22 | Accenture Australia Ltd. | Aggregation of credit facilities |
US7340424B2 (en) | 2002-12-30 | 2008-03-04 | Fannie Mae | System and method for facilitating sale of a loan to a secondary market purchaser |
AU2002229419B2 (en) * | 2001-02-12 | 2008-05-29 | Accenture Global Services Limited | Aggregation of credit facilities |
US7747519B2 (en) | 2002-12-30 | 2010-06-29 | Fannie Mae | System and method for verifying loan data at delivery |
US7987124B1 (en) | 2004-08-20 | 2011-07-26 | Fannie Mae | Method of and system for evaluating an appraisal value associated with a loan |
US8046298B1 (en) | 2003-07-21 | 2011-10-25 | Fannie Mae | Systems and methods for facilitating the flow of capital through the housing finance industry |
US8296191B1 (en) | 2007-01-10 | 2012-10-23 | Stte, Llc | Electronic open-market commerce system and method |
US9928546B2 (en) | 2002-12-30 | 2018-03-27 | Fannie Mae | System and method for processing data pertaining to financial assets |
-
2000
- 2000-05-31 AU AU51791/00A patent/AU5179100A/en not_active Abandoned
- 2000-05-31 WO PCT/US2000/015329 patent/WO2000075833A2/en active Application Filing
Non-Patent Citations (1)
Title |
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No Search * |
Cited By (9)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
WO2002065351A1 (en) * | 2001-02-12 | 2002-08-22 | Accenture Australia Ltd. | Aggregation of credit facilities |
AU2002229419B2 (en) * | 2001-02-12 | 2008-05-29 | Accenture Global Services Limited | Aggregation of credit facilities |
US7340424B2 (en) | 2002-12-30 | 2008-03-04 | Fannie Mae | System and method for facilitating sale of a loan to a secondary market purchaser |
US7747519B2 (en) | 2002-12-30 | 2010-06-29 | Fannie Mae | System and method for verifying loan data at delivery |
US8515861B2 (en) | 2002-12-30 | 2013-08-20 | Fannie Mae | System and method for facilitating sale of a loan to a secondary market purchaser |
US9928546B2 (en) | 2002-12-30 | 2018-03-27 | Fannie Mae | System and method for processing data pertaining to financial assets |
US8046298B1 (en) | 2003-07-21 | 2011-10-25 | Fannie Mae | Systems and methods for facilitating the flow of capital through the housing finance industry |
US7987124B1 (en) | 2004-08-20 | 2011-07-26 | Fannie Mae | Method of and system for evaluating an appraisal value associated with a loan |
US8296191B1 (en) | 2007-01-10 | 2012-10-23 | Stte, Llc | Electronic open-market commerce system and method |
Also Published As
Publication number | Publication date |
---|---|
AU5179100A (en) | 2000-12-28 |
WO2000075833A8 (en) | 2001-10-25 |
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