SYSTEM AND METHOD FOR CREATING AND TRACKING AGREEMENTS FOR SELLING LOANS TO A SECONDARY MARKET PURCHASER

• US 20090076973A1
• Filed: 11/24/2008
• Published: 03/19/2009
• Est. Priority Date: 12/30/2002
• Status: Active Grant

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Mathewson, Mark D., Simonds, John A. JR., Singh, Navdeep, Kemper, John L.
• Granted Patent: US 8,065,211 B2
• Time in Patent Office: Days
• US Class Current: 705/80
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system for creating an agreement and tracking compliance with terms of an agreement between a seller and a purchaser for the sale of loans includes deal management logic and a rules processor. The deal management logic is configured to store and track the terms of the agreement using a set of business rules. The rules processor comprises the set of business rules and is configured to facilitate adding or editing at least one business rule based on at least one term of the agreement. In addition, the rules processor is configured to access the business rules to assess compliance with the terms of the agreement during delivery of the loans. The system may also include pricing logic that is configured to create a set of price data based on the at least one term of the agreement.

Claims

1. An apparatus for creating an agreement between a seller and a purchaser for the sale of mortgage loans and tracking compliance with terms of the agreement, the system comprising:

a computer-implemented user interface configured to receive information regarding the terms of the agreement from a user;

a computer-implemented data storage device;

deal management logic coupled to the user interface and configured to store the terms of the agreement in the data storage device and to generate the agreement based on the information regarding the terms of the agreement provided by the user; and

pricing logic, coupled to the deal management logic, configured to generate a yield adjustment based on at least one term of the agreement, wherein the at least one term relates to an attribute of a mortgage loan and the yield adjustment is stored with the agreement.

2. The apparatus of claim 1, wherein the pricing logic is further configured to determine selling prices for the loan.

3. The apparatus of claim 1, wherein the attribute of the mortgage loan is a variance from a set of business rules and the yield adjustment reflects the variance of the attribute from the set of business rules.

4. The apparatus of claim 1, wherein the terms of the agreement include the set of business rules, and the business rules (i) define the types of mortgage loans that may be sold to the purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans

5. The apparatus of claim 1, wherein the pricing logic is further configured to modify a pricing grid to incorporate the yield adjustment to generate a modified pricing grid.

6. The apparatus of claim 5, wherein the deal management logic is further configured to access the modified pricing grid during delivery of the mortgage loan from the seller to the purchaser to determine a selling price for the mortgage loan.

7. An apparatus for creating an agreement between a seller and a purchaser for the sale of mortgage loans and tracking compliance with terms of the agreement, the system comprising:

a user interface configured to receive information from a user regarding the terms of the agreement between the seller and the purchaser for the sale of mortgage loans, the terms of the agreement including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans;

a computer-implemented data storage device;

deal management logic coupled to the user interface and configured to;

generate the agreement between the seller and the purchaser based on the information regarding the terms of the agreement received from the user, including the at least one variance from the set of business rules; and

assign a unique identifier to the at least one variance;

pricing logic coupled to the deal management logic and configured to

generate a loan level pricing adjustment for the at least one variance;

modify an existing pricing grid based on the loan level pricing adjustment for the at least one variance to generate a modified pricing grid;

store the modified pricing grid with the agreement in the data storage device; and

access the modified pricing grid to determine a selling price for the mortgage loan.

8. The apparatus of claim 7, wherein the existing pricing grid is created automatically by the pricing logic.

9. The apparatus of claim 7, wherein the modified pricing grid is generated in response to pricing information received from a user.

10. The apparatus of claim 7, wherein the deal management logic is configured to access the modified pricing grid during delivery of the mortgage loan from the seller to the purchaser.

11. The apparatus of claim 7, wherein the deal management logic is configured to access the modified pricing grid and determine a selling price for the mortgage loan prior to delivery of the mortgage loan from the seller to the purchaser.

12. The apparatus of claim 7, wherein the modified pricing grid identifies the agreement and the identifier for the at least one variance.

13. The apparatus of claim 7, wherein the pricing logic is further configured to display the selling price for the mortgage loan to the seller.

14. The apparatus of claim 7, wherein the pricing logic is further configured to access the modified pricing grid during delivery of the mortgage loan from the seller to the purchaser to determine a yield adjustment for the mortgage loan.

15. The apparatus of claim 13, wherein the pricing logic is further configured to provide the yield adjustment for the mortgage loan to the seller.

16. An apparatus for creating an agreement between a loan originator and a secondary mortgage market participant for the sale of mortgage loans, comprising:

a user interface configured to receive information from a user regarding the terms of the agreement between the loan originator and the secondary mortgage market participant for the sale of mortgage loans, the terms of the agreement including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the secondary mortgage market participant and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the secondary mortgage market participant to determine whether the mortgage loan is acceptable for purchase by the secondary mortgage market participant based on whether the mortgage loan is one of the defined types of mortgage loans;

a computer-implemented data storage device;

deal management logic coupled to the user interface and configured to;

generate the agreement between the loan originator and the secondary mortgage market participant based on the information regarding the terms of the agreement received from the user, including the at least one variance from the set of business rules; and

assign a unique identifier to the at least one variance; and

pricing logic coupled to the deal management logic and configured to

generate a pricing adjustment for the at least one variance;

modify an existing pricing grid based on the pricing adjustment for the at least one variance to generate a modified pricing grid;

store the modified pricing grid with the agreement in the data storage device; and

access the modified pricing grid during delivery of the mortgage loan from the loan originator to the secondary mortgage market participant to determine at least one of a yield adjustment and a selling price for the mortgage loan.

17. The apparatus of claim 16, wherein the pricing logic is further configured to provide the at least one of the yield adjustment and the selling price for the mortgage loan to the loan originator.

18. The apparatus of claim 16, further comprising a rules processor coupled to the deal management logic and configured to

modify the set of business rules to generate a modified set of business rules;

and

apply the modified set of business rules during delivery of mortgage loans to the secondary mortgage market participant to determine whether the mortgage loans are acceptable for purchase by the secondary mortgage market participant under the terms of the agreement.

19. The apparatus of claim 18, wherein the rules processor is configured to modify the set of business rules based on inputs received from a user.

20. The apparatus of claim 16, wherein the pricing adjustment is a yield adjustment generated in response to a level of credit risk identified during delivery of the mortgage loan from the loan originator to the secondary mortgage market participant exceeds a predetermined level of credit risk.