Method for applying insurance to a loan for real property

• US 20040019544A1
• Filed: 07/29/2002
• Published: 01/29/2004
• Est. Priority Date: 07/29/2002
• Status: Abandoned Application

• Current Assignee: Radian Group Incorporated
• Original Assignee: Radian Group Incorporated
• Inventors: Conway, Dennis, Yaruss, Howard
• Application Number:
  US10/207,360
• Publication Number:
  US 20040019544A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The invention is directed to a method for applying mortgage guaranty insurance to a loan for a real property to be made by a lender to a borrower, which includes covering the lender for a loss arising from a default on the loan, independently of the reason for the default, wherein the coverage provides a separate monetary limit for loan defaults involving one or more undisclosed liens on said property that secures said loan; causing a loan related search to be conducted, wherein the loan related search includes a search of both borrower related information and property related information; causing a report to be generated based upon the loan related search; and associating the loan with the insurance policy if the loan is approved. The invention may further include requiring the lender to obtain a completed application from the borrower along with borrower supplied information regarding any encumbrances known or suspected by the borrower; having the lender compare the report, the borrower'"'"'s application, and the borrower supplied information to verify a lien position of the lender when making the loan; and having the lender ensure that all outstanding encumbrances on said property are subordinated to a new mortgage for the loan.

Claims

8-1. The method of claim 1, wherein said borrower related information includes at least one credit report.

21. A method for applying insurance to a loan for a real property to be made by a lender to a borrower, wherein an insurance policy covers said lender for a financial loss arising from a default on said loan, independent of the reason for said default, said coverage providing a separate monetary limit for loan defaults involving one or more undisclosed liens on said property that secures said loan, said method comprising the steps of:

receiving loan information on said loan to be reviewed;

causing a loan related search to be conducted, wherein said loan related search includes a search of both borrower related information and property related information; and

causing a report to be generated based upon said loan related search;

providing said report to said lender to be used in approving or denying said loan;

requiring said lender to obtain a completed application from said borrower along with borrower supplied information setting forth any encumbrances known or suspected by said borrower;

causing said lender to compare said report, said borrower'"'"'s application, and said borrower supplied information to verify a lien position of said lender when making said loan; and

causing said lender to ensure that all outstanding encumbrances are subordinated to a new mortgage for said loan; and

associating said loan for said property with said insurance policy if said loan is approved.

22. A method for applying insurance to a loan for a real property to be made by a lender to a borrower comprising the steps of:

issuing an insurance policy to said lender, wherein said insurance policy covers loan default losses paid by the lender subject to an aggregate limit for loan default losses involving one or more undiscovered liens equal to a predetermined amount of basis points, and an aggregate limit for loan default losses other than those involving undisclosed liens on said property equal to a second predetermined number of basis points;

receiving loan information on said loan;

causing a loan related search to be conducted, wherein said loan related search includes a search of both borrower related information and property related information;

causing a report to be generated based upon said loan related search to be used in approving or denying said loan; and

associating said loan for said property with said insurance policy if said loan is approved.