System and method for analyzing financial risk
First Claim
1. A method for assessing a particular loan'"'"'s financial risk, the method comprising the steps of:
- (a) providing a predictive model based on a plurality of loans that have been deemed delinquent;
(b) acquiring data pertaining to a borrower who has obtained a particular loan and data pertaining to the particular loan;
(c) processing the acquired data to identify process variations; and
(d) applying the predictive model to the processed data pertaining to the borrower and to the particular loan to generate a financial risk score for the particular loan.
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Abstract
The invention relates to the development of systems and methods for assessing a particular loan'"'"'s financial risk due to process variations that have occurred in the underwriting and closing of the loan. The financial risk associated with a particular loan is expressed in terms of a quantitative score (a financial risk score) indicating the probability of the loan being defaulted on. The systems and methods of the invention provide purchasers of loans with a means to predict, in advance of purchasing a particular loan, the probability of the loan being defaulted on. Lenders who conduct quality control reviews and analyses of denied loan applications, as well as investors who wish to determine the regulatory risk associated with a loan, will also find use for the financial risk score generated by the systems and methods of the invention.
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Citations
28 Claims
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1. A method for assessing a particular loan'"'"'s financial risk, the method comprising the steps of:
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(a) providing a predictive model based on a plurality of loans that have been deemed delinquent;
(b) acquiring data pertaining to a borrower who has obtained a particular loan and data pertaining to the particular loan;
(c) processing the acquired data to identify process variations; and
(d) applying the predictive model to the processed data pertaining to the borrower and to the particular loan to generate a financial risk score for the particular loan. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A system for assessing a particular loan'"'"'s financial risk, the system comprising:
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(a) a means for acquiring and processing data pertaining to a borrower who has obtained a particular loan and data pertaining to the particular loan;
(b) a means for applying a predictive model based on a plurality of loans that have been deemed delinquent to the processed data to generate a financial risk score for the particular loan. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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- 22. A computer-readable medium comprising instructions coded thereon that, when executed on a suitably programmed computer, execute the step of applying a predictive model based on a plurality of loans that have been deemed delinquent to processed data pertaining to a borrower of a particular loan and data pertaining to the particular loan to generate a financial risk score for the particular loan.
Specification