System and method for automated process of deal structuring

• US 20060155639A1
• Filed: 06/24/2004
• Published: 07/13/2006
• Est. Priority Date: 06/03/2000
• Status: Abandoned Application

• Current Assignee: Joan Lynch, John Howard Mcnair, Milton Riseman, Roberto E D'Urbano, Stephen John Polito, William Kaiser
• Original Assignee: Joan Lynch, John Howard Mcnair, Milton Riseman, Roberto E D'Urbano, Stephen John Polito, William Kaiser
• Inventors: Kaiser, William, D'Urbano, Roberto E., McNair, John Howard, Polito, Stephen John, Lynch, Joan, Riseman, Milton
• Application Number:
  US10/876,379
• Publication Number:
  US 20060155639A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method of automatically generating, based on the preferences of a potential borrower as entered by a third party, multiple alternative loan proposals requested by the third party, are disclosed. The method of automatically generating, based on the preferences of a potential borrower as entered by a third party, multiple alternative loan proposals requested by the third party, includes the steps of prompting the third party for at least one loan parameter, requesting from the third party information relating to the potential borrower, accessing in substantially real time information relating to the credit history of the potential borrower, applying at least one loan origination rule to the at least one loan parameter and the information relating to the potential borrower, applying at least one strategy to at least one result of said applying at least one loan origination rule, generating at least two loan proposals in accordance with the at least one result of said applying at least one loan origination rule and said applying at least one strategy, wherein at least one loan proposal is automatically approved, and wherein each loan proposal includes a plurality of loan proposal factors, and presenting the third party with the at least two loan proposals for presentation to the potential borrower.

Claims

1. A method of automatically generating, based on the preferences of a potential borrower as entered by a third party, multiple alternative loan proposals requested by the third party, comprising:

prompting the third party for at least one loan parameter;

requesting from the third party information relating to the potential borrower;

accessing in substantially real time information relating to the credit history of the potential borrower;

applying at least one loan origination rule to the at least one loan parameter and the information relating to the potential borrower;

applying at least one strategy to at least one result of said applying at least one loan origination rule;

generating at least two loan proposals in accordance with the at least one result of said applying at least one loan origination rule and said applying at least one strategy, wherein at least one loan proposal is automatically approved, and wherein each loan proposal includes a plurality of loan proposal factors; and

presenting the third party with the at least two loan proposals for presentation to the potential borrower.

2. The method of claim 1, wherein the at least one loan parameter comprises the gross amount of the loan.

3. The method of claim 1, wherein the at least one loan parameter comprises the proceeds of the loan.

4. The method of claim 1, wherein the at least one loan parameter comprises the monthly payment due under the terms of the loan proposal.

5. The method of claim 1, wherein the at least one loan parameter comprises the total monthly debt service that the potential borrower would be required to pay for the loan proposal and the existing debts of the potential borrower not be discharged with the proceeds of the proposed loan.

6. The method of claim 1, wherein the at least one loan parameter comprises the loan term.

7. The method of claim 1, wherein the at least one loan parameter comprises the number of points payable by the potential borrower.

8. The method of claim 1, wherein the at least one loan parameter comprises the loan interest rate.

9. The method of claim 1, wherein the information provided by the third party comprises information relating to the collateral offered by the potential borrower.

10. The method of claim 9, wherein the information relating to the collateral comprises the lien position of the lender in the collateral.

11. The method of claim 9, wherein the information relating to the collateral comprises the type of collateral offered by the potential borrower.

12. The method of claim 9, wherein the information relating to the collateral comprises information relating to the identity of collateral offered by the potential borrower.

13. The method of claim 1, wherein the at least one loan parameter comprises a fixed loan interest rate.

14. The method of claim 1, wherein the at least one loan parameter comprises a balloon loan.

15. The method of claim 1, wherein the at least one loan parameter comprises a prepayment penalty.

16. The method of claim 1, wherein the at least one loan parameter comprises a variable interest rate.

17. The method of claim 1, wherein the information relating to the potential borrower comprises the amount of the income of the potential borrower.

18. The method of claim 1, wherein the information relating to the potential borrower comprises the amount of debts of the potential borrower.

19. The method of claim 1, wherein the information relating to the potential borrower comprises the name of the potential borrower.

20. The method of claim 1, wherein the information relating to the potential borrower comprises the taxpayer identification number of the potential borrower.

21. The method of claim 1, wherein the information relating to the potential borrower comprises that the potential borrower is an individual.

22. The method of claim 1, wherein the information relating to the potential borrower comprises information relating to the spouse of the potential borrower.

23. The method of claim 1, wherein the information relating to the potential borrower comprises the objective of the potential borrower in applying for the loan.

24. The method of claim 1, wherein the information relating to the potential borrower comprises information relating to the credit history of the potential borrower.

25. The method of claim 1, further comprising the step of:

storing the at least one loan parameter received from the third party in response to the said prompting and storing the information relating to the potential borrower received from the third party in response to said prompting and requesting.

26. The method of claim 25, wherein the at least one loan parameter and the information relating to the potential borrower are individually stored in a database.

27. The method of claim 1, wherein the at least one loan origination rule is stored in a knowledge base.

28. The method of claim 1, wherein the at least one loan origination rule is applied to the data received from the third party in response to said prompting and requesting using an inference engine.

29. The method of claim 1, wherein the at least one loan origination rule is applied to the data received from the third party in response to said prompting and requesting using an expert system.

30. The method of claim 1, wherein said accessing comprises receiving a credit report electronically from a credit report provider.

31. The method of claim 1, wherein said accessing comprises accessing a stored credit report received electronically from a credit report provider.

32. The method of claim 1, wherein said accessing comprises accessing information stored in a database.

33. The method of claim 1, wherein the at least one loan origination rule comprises at least one rule relating to the type of borrower.

34. The method of claim 33, wherein the at least one rule relating to the type of borrower comprises a rule for rejecting any borrower that is not a natural person.

35. The method of claim 1, wherein the at least one loan origination rule comprises at least one rule relating to the state of residence of the potential borrower.

36. The method of claim 1, wherein the at least one loan origination rule comprises at least one rule relating to the state in which offered collateral is located.

37. The method of claim 1, wherein the at least one loan origination rule comprises at least one rule relating to the ratio of the proposed amount of debt secured by offered collateral to the value of the collateral.

38. The method of claim 37, wherein the at least one rule relating to the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral comprises a rule for rejecting any third party if the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral exceeds a predetermined value.

39. The method of claim 37, wherein the at least one rule relating to the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral comprises a rule for increasing the interest rate of the loan if the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral exceeds a predetermined value.

40. The method of claim 1, wherein the at least one loan origination rule comprises at least one rule relating to the ratio of the income of the potential borrower to a predetermined percentage of the total debt that the potential borrower would have if the loan were approved and consummated.

41. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the ratio of the income of the potential borrower to the total monthly payment relating to all of the debts of the potential borrower that the potential borrower would have if the loan were approved and consummated.

42. The method of claim 1, wherein the at least one strategy comprises generating an alternative proposed loan with a greater loan amount.

43. The method of claim 1, wherein the at least one strategy comprises repairing a rejected loan by altering loan parameters.

44. The method of claim 43, wherein the loan amount is decreased.

45. The method of claim 43, wherein the number of points is increased.

46. The method of claim 43, wherein loan proceeds are used to discharge additional debts.

47. The method of claim 43, wherein loan proceeds are used to discharge senior indebtedness.

48. The method of claim 43, wherein the interest rate is increased.

49. The method of claim 43, wherein the loan term is lengthened.

50. A computer-readable medium tangibly embodying instructions which, when executed by a computer, implement a process comprising the steps of:

prompting a third party for at least one loan parameter;

requesting from the third party information relating to a potential borrower;

accessing in real time information relating to the credit history of the potential borrower;

applying at least one loan origination rule to the at least one loan parameter and the information relating to the potential borrower;

applying at least one strategy to at least one result of said applying;

generating at least two loan proposals in accordance with the at least one result of said applying at least one loan origination rule and said applying at least one strategy, wherein at least one loan option is automatically approved for a choice of at least one of the at least two loan proposals, and wherein each loan proposal includes a plurality of loan proposal factors;

presenting the third party with the at least two loan proposals, wherein the third party may present the at least two loan proposals to the potential borrower;

wherein the information provided by the third party comprises information relating to the collateral offered by the potential borrower.