Method and apparatus for computing a loan quality score

• US 20060224499A1
• Filed: 03/29/2005
• Published: 10/05/2006
• Est. Priority Date: 03/29/2005
• Status: Abandoned Application

• Current Assignee: First American CoreLogic Incorporated (CoreLogic Incorporated)
• Original Assignee: First American Real Estate Solutions LLC (CoreLogic Incorporated)
• Inventors: Martin, Vernon, Graboske, Benjamin
• Application Number:
  US11/093,119
• Publication Number:
  US 20060224499A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method of computing a loan quality score using user input data concerning a subject property and the proposed loan, The loan quality score is useful in determining the probability that fraud is involved in the property loan request being made to a lender.

Claims

1. A computer-based method of computing a loan quality score for a subject property comprising the steps of:

using past loan data to develop at least one algorithm for use in predicting loan fraud;

obtaining subject property data; and

applying said at least one algorithm to said subject property data to thereby compute a loan quality score.

2. A digital computer system programmed to perform the steps specified in the method of claim 1.

3. Computer-readable media containing programming designed to accomplish the method of claim 1.

4. The method of claim 1 wherein said past loan data includes at least one datum from a known fraudulent transaction.

5. The method of claim 1 wherein said subject property data includes a determination as to whether the seller is a risky seller based on a string search for key words.

7. The method of claim 1 wherein said subject property data includes the number of sales of said subject property within a predetermined period of time.

8. The method of claim 1 wherein said subject property data includes data to determine whether the loan purpose is for purchase or refinancing.

9. The method of claim 1 wherein said subject property data includes data to determine whether the borrower intends to occupy said subject property.

10. The method of claim 1 wherein said subject property data includes data to determine whether the sale appears to be an arm'"'"'s length transfer.

11. The method of claim 1 wherein said subject property data includes the requested loan amount.

12. The method of claim 1 wherein said subject property data includes the age of said subject property.

13. The method of claim 1 wherein said subject property data includes the size of said subject property.

14. The method of claim 1 wherein said subject property data includes at least one automated valuation model valuation of said subject property.

15. The method of claim 1 wherein said subject property data includes an appreciation variance ratio.

16. The method of claim 1 wherein said subject property data includes at least one user-submitted value of said subject property.

17. The method of claim 1, wherein said algorithm is:

Loan quality score=500−

(33*Logit)

Where;

18. The method of claim 1, wherein said algorithm is:

Loan quality score=500−

(31*Logit)

Where;

19. A method to be performed by a computer of determining a loan quality score for a subject property comprising the steps of:

using past loan data to develop at least one algorithm for use in predicting loan fraud;

obtaining subject property data;

obtaining an automated valuation model valuation of said subject property;

computing additional variables based upon said data and said automated valuation model valuation; and

applying said algorithm to said subject property data, said additional variables and said automated valuation model valuation to thereby compute a loan quality score.

20. A computer-based apparatus for computing a loan quality score for a subject property comprising:

input means for receiving subject property data

computation means connected to said input means for computing a loan quality score and for computing algorithms for use in providing said loan quality score; and

output means connected to said computation means for providing the results.

21. The apparatus of claim 20, further comprising:

automated valuation model connection means connected to said input means for requesting and receiving automated valuation model valuations.

22. The apparatus of claim 20, further comprising:

temporary data storage means connected to said computation means for storing said property data and said loan quality score.

23. The apparatus of claim 20, further comprising:

report-generation means connected to said computation means for creating reports based upon said property data and said loan quality score.

24. The apparatus of claim 20, further comprising:

database connection means connected to said input means for requesting and receiving data from at least one database.

25. The apparatus of claim 20, wherein said computation means uses the algorithm:

Loan quality score=500−

(33*Logit)

Where;

26. The apparatus of claim 20, wherein said computation means uses the algorithm:

Loan quality score=500−

(31*Logit)

Where;