SYSTEM AND METHOD FOR TRACKING AND ANALYZING LOANS INVOLVED IN ASSET-BACKED SECURITIES

• US 20090240609A1
• Filed: 05/21/2008
• Published: 09/24/2009
• Est. Priority Date: 03/19/2008
• Status: Abandoned Application

• Current Assignee: Experian Information Solutions Incorporated (Experian plc)
• Original Assignee: Experian Information Solutions Incorporated (Experian plc)
• Inventors: Cho, Soogyung, Williams, Kerry Lee, Schwab, Matt R.
• Application Number:
  US12/124,613
• Publication Number:
  US 20090240609A1
• Time in Patent Office: Days
• US Class Current: 705/30
• 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Embodiments of the disclosure are directed to providing unique loan identifiers to track loans involved in Asset-Backed Securities (ABS) throughout the life-cycle of the individual loans. In one embodiment, a unique loan identifier, for example, a loan number, may be appended to loan data at initiation of each loan, for example, at the application stage, to and/or beyond the retirement of the loan. The unique loan identifiers may allow disparate financial data sources such as the credit histories of the borrowers to be associated with the individual loans, even as the loans are repackaged and resold as ABS in the secondary markets. Thus, market participants such as loan servicers and investors can access current and historical data associated with the loans. Other embodiments are directed to analyzing the data associated with the underlying loans and providing the analysis to the market participants including servicers, investors, and underwriters.

Claims

1. A computerized system for analyzing loans involved in asset-backed securities, comprising:

a credit migration database that stores consumer credit and financial data;

a data repository that assigns a securitization ID to a loan and associates the securitization ID to a credit data record in the credit migration database that is associated with a borrower of the loan;

a tracking and analysis module that, upon request, analyzes one or more loans by using the respective loan securitization IDs to;

retrieve the credit data records of the borrowers of the loans from the credit migration database after the loans have been securitized as asset-backed securities;

calculate a loan default risk based on payment records and account tradeline information within the credit data records that are associated with the borrowers; and

store the loan default risk in the data repository; and

a portal interface through which authorized users can access at least the loan default risk stored in the data repository, wherein the portal interface is configured to provide data to the authorized users via one or more network connections.

2. The computerized system of claim 1, further comprising a trigger notification module that:

causes the tracking and analysis module to be executed based on a pre-determined frequency;

compares the loan default risk to a set of pre-defined threshold conditions; and

sends notifications when at least one of the threshold conditions is met.

3. The computerized system of claim 2, wherein the frequency and the threshold conditions are defined by a user of the system.

4. The computerized system of claim 1 wherein the credit data record is a unique PIN-based consumer data record.

5. The computerized system of claim 1 wherein the loan default risk is based on historical loan performance and borrower default risk stored in the data repository.

6. The computerized system of claim 5 wherein the loan default risk is based on collateral information stored in the data repository.

7. The computerized system of claim 6 wherein the collateral information relates to a real property.

8. The computerized system of claim 6 wherein the collateral information relates to an automobile.

9. The computerized system of claim 2 wherein the default risk is based on borrower credit behavior.

10. The computerized system of claim 1 wherein the tracking and analysis module retrieves the credit data records stripped of personal identifying information.

11. A method of analyzing performance of loans and borrower credit profiles involved in asset-backed securities, comprising:

assigning a unique loan identifier to each of a plurality of loans;

associating one or more borrower credit data records with each of the loan identifiers;

after the loans have been issued and securitized as asset-backed securities, using the loan identifiers to retrieve the credit data records of the respective borrowers of the plurality of loans; and

analyzing the loans based on the retrieved credit data records of the borrowers.

12. The method of claim 11, wherein the analyzing further comprises:

retrieving the credit data records of the borrowers from a credit database, wherein the credit data records further include a plurality of credit data attributes.

13. The method of claim 12, further comprising:

performing the retrieving periodically at specified time intervals;

recording the retrieved credit data records;

comparing the credit data records retrieved from different time periods to determine a trend in the collective performance of the plurality of loans.

14. The method of claim 13 wherein the trend includes one of payment behavioral changes, credit behavioral changes, and projection of future performances.

15. The method of claim 13, further comprising:

outputting information indicating the trend in a graph format.

16. The method of claim 13, wherein the comparing determines the percentage of the plurality of loans having a negative status in a tradeline.

17. The method of claim 16, wherein the tradeline is a real property tradeline.

18. The method of claim 13, wherein the comparing determines the percentage of the plurality of loans having a delinquent status in a tradeline.

19. The method of claim 18, wherein the tradeline is a real property tradeline.

20. The method of claim 11 wherein the analyzing further comprises:

receiving a plurality of conditions;

examining the credit data records to determine whether the plurality of conditions are met; and

sending notifications when the credit data records meet at least one of the plurality of conditions.

21. The method of claim 20 wherein the notifications are sent in real-time.

22. The method of claim 21 wherein the conditions comprise the presence of one or more current negative or positive change items in the credit data records.

23. A computerized system for analyzing loans involved in asset-backed securities, comprising:

a data repository that assigns a unique loan identifier to each of a plurality of loans and associates each loan identifier to one or more credit data records of the respective borrowers of the loans; and

a tracking and analysis module that, upon request, analyzes a first plurality of the loans that have been combined into an asset-backed security, wherein the tracking and analysis module uses the loan identifiers associated with the first plurality of loans in order to;

retrieve credit data records of the borrowers associated with the first plurality of loans after the loans have been securitized as asset-backed securities,

analyze the performance of the first plurality of loans based on the retrieved credit data records, and

provide the performance analysis to one or more entities that are authorized to receive the performance analysis.

24. The computerized system of claim 23, wherein the entities comprise one or more of loan issuers, loan underwriters, loan servicers, and loan investors.

25. The computerized system of claim 24 wherein the data repository system stores CUSIP numbers assigned by the loan underwriters and associates the unique loan identifiers to the CUSIP numbers.

26. The computerized system of claim 23, further comprising:

a portal interface through which the performance analysis can be accessed, the portal interface further comprising;

a loan-level management interface module through which updated credit data records associated with a loan of the plurality of loans is displayed.

27. The computerized system of claim 25 wherein the updated credit data records include one or more of updated tradelines, updated public records, updated credit scores, and loan securitization status information.

28. The computerized system of claim 23, further comprising:

a portal interface through which the performance analysis can be accessed, the portal interface further comprising;

a loan portfolio management interface displaying updated credit data records associated with the first plurality of loans.

29. The computerized system of claim 28 wherein the tracking and analysis module aggregates the credit data records associated with the first plurality of loans and outputs aggregated results to the loan portfolio management interface.

30. The computerized system of claim 29 wherein the aggregated results comprise one or more of weighted average credit scores, weighted average risk scores, delinquencies rates, and other credit behavior characteristics.

31. The computerized system of claim 28 wherein the loan portfolio management interface displays aggregated results of a plurality of loan portfolios, wherein the performance of the loan portfolios can be compared against each other, against peer groups, against an industry average, or against a benchmark.

32. The computerized system of claim 23 wherein the tracking and analysis module:

retrieves the credit data records of the borrowers associated with the first plurality of loans periodically at specified time intervals, wherein the credit data records further include a plurality of credit data attributes;

records the retrieved credit data records in the data repository; and

compares the credit data records retrieved from different time periods to determine a trend in the collective performance of the first plurality of loans.

33. The computerized system of claim 32 wherein the plurality of credit data attributes comprise collateral valuation attributes.

34. The computerized system of claim 32, wherein the tracking and analysis module outputs the comparison of credit data records retrieved from different time periods in a graph format.

35. The computerized system of claim 32, wherein the tracking and analysis module determines the percentage of the first plurality of loans with a credit data attribute indicating a negative status in a tradeline.

36. The computerized system of claim 35 wherein the tradeline is a real property tradeline.

37. The computerized system of claim 32 wherein the tracking and analysis module determines the percentage of the first plurality of loans with a credit data attribute indicating a change of status in a tradeline.

38. The computerized system of claim 37 wherein the tradeline is a real property tradeline.

39. The computerized system of claim 23 wherein the tracking and analysis module:

receives a plurality of conditions;

examines the credit data records to determine whether the plurality of conditions are met; and

sends notifications when the credit data records meet at least one of the plurality of conditions.

40. The computer system of claim 23, further comprising a portal interface through which the results can be accessed, the portal interface further comprising:

a map-based output through which updated credit data records associated with the plurality of loans are displayed in a map-based format.

41. The computer system of claim 40 wherein the map-based output is based on one of 3-digit ZIP data, 5-digit ZIP data, 7-digit ZIP data, and 9-digit ZIP data.

42. The computer system of claim 40 wherein the credit data records comprise summarized credit statistics or collateral associated with the plurality of loans.

43. A computer program product comprising a computer usable medium having control logic stored therein for causing a computer to track and analyze loans involved in asset-backed securities, comprising:

a first computer readable program code for causing the computer to assign a unique loan identifier to each of a plurality of loans;

a second computer readable program code for causing the computer to associate one or more borrower credit data records with each of the loan identifiers;

a third computer readable program code for causing the computer to use the loan identifiers to retrieve the credit data records of the respective borrowers of the plurality of loans after the loans have been issued and securitized as asset-backed securities; and

a fourth computer readable program code for causing the computer to analyze the loans based on the retrieved credit data records of the borrowers.

44. The computer program product of claim 43, further comprising:

a fifth computer readable program code for causing the computer to retrieve the credit data records of the borrowers from a credit database, wherein the credit data records further include a plurality of credit data attributes.

45. The computer program product of claim 44, further comprising:

a sixth computer readable program code for causing the computer to execute the fifth computer readable program code means for causing the computer to retrieve periodically at specified time intervals;

a seventh computer readable program code for causing the computer to record the retrieved credit data records;

an eighth computer readable program code for causing the computer to compare the credit data records retrieved from different time periods to determine a trend in the collective performance of the plurality of loans.

46. The computer program product of claim 45, further comprising:

a ninth computer readable program code for causing the computer to output information indicating the trend in a graph format.

47. The computer program product of claim 46, further comprising:

a tenth computer readable program code for causing the computer to store CUSIP numbers received from one or more loan underwriters and associate loan identifiers to the CUSIP numbers.

48. A computerized system for analyzing loans involved in asset-backed securities, comprising:

a credit migration database that stores consumer credit and financial data;

a data repository that assigns a securitization ID to a loan and associates the securitization ID to a credit data record in the credit migration database that is associated with a borrower of the loan;

a tracking and analysis module that, upon request, analyzes one or more loans by using the respective loan securitization IDs to;

retrieve the credit data records of the borrowers of the loans from the credit migration database after the loans have been securitized as asset-backed securities;

calculate a loan characteristic based on payment records and account tradeline information within the credit data records that are associated with the borrowers; and

store the loan characteristic in the data repository; and

a portal interface through which authorized users can access at least the loan characteristic stored in the data repository, wherein the portal interface is configured to provide data to the authorized users via one or more network connections.

49. The computerized system of claim 48 wherein the loan characteristic is a prepayment risk.

50. The computerized system of claim 48 wherein the loan characteristic is an average interest rate.