Computer-Implemented Systems And Methods For Loan Evaluation Using A Credit Assessment Framework

• US 20090299911A1
• Filed: 05/29/2009
• Published: 12/03/2009
• Est. Priority Date: 05/29/2008
• Status: Active Grant

• Current Assignee: SAS Institute Incorporated
• Original Assignee: SAS Institute Incorporated
• Inventors: Zhang, Mingyuan, Abrahams, Clark Richard
• Granted Patent: US 8,521,631 B2
• Time in Patent Office: Days
• US Class Current: 705/36.00R
• 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Systems and methods are provided for evaluating loan applications. A computer environment can include a loan evaluation system which operates on a processor-based system and which evaluates loan applications. A credit assessment framework is also provided for operating on the processor-based system and has a data connection to the loan evaluation system. The credit assessment framework generates a categorization of credit risk for each of the loan applications to be evaluated.

Claims

1. A processor-implemented system for evaluating loan applications, comprising:

a loan evaluation system for operating on a processor-based system and for evaluating loan applications;

a credit assessment framework for operating on the processor-based system and having a data connection to the loan evaluation system;

said credit assessment framework using business context and a plurality of factors in order to generate a categorization of credit risk for each of the loan applications to be evaluated;

wherein the generated categorization is stored in a computer-readable storage medium and is relative to a plurality of primary underwriting factors via a transaction contour identifier;

wherein the transaction contour identifier provides a single number for rating strengths and weaknesses relative to the primary underwriting factors;

said credit assessment framework further including a computer system for incorporating judgmental components when generating the categorization of credit risk.

2. The system of claim 1, wherein the rating includes a 1-10 rating scale for describing the strengths and weaknesses relative to the primary underwriting factors.

3. The system of claim 1, wherein non-credit data is used to generate the categorization of credit risk.

4. The system of claim 1, wherein borrowers are segmented based upon the primary underwriting factors.

5. The system of claim 4, wherein the segmenting of the borrowers is performed based upon the transaction contour.

6. The system of claim 5, wherein the transaction contour simultaneously considers all of the primary underwriting factors.

7. The system of claim 4, wherein actions are assigned for each identified segment.

8. The system of claim 5, wherein the actions include approval/denial, price, and terms.

9. The system of claim 1, wherein the credit assessment framework facilitates monitoring and management of loan portfolios.

10. The system of claim 1, wherein the use of the transaction contour identifier avoids substituting payment habit and loan preference history factors.

11. The system of claim 1, wherein the categorization of credit risk is generated based upon a borrower contour.

12. The system of claim 1, wherein the borrower contour comprises a pattern of values relating to character, capacity, and capital for a consumer or business.

13. The system of claim 12, wherein the character includes payment history, savings history, and stability measures such as years in profession.

14. The system of claim 12, wherein the capacity is measured by income, debt obligations, cash obligations, living expenses, and number of dependents.

15. The system of claim 12, wherein the capital includes net worth, amount and liquidity of assets.

16. The system of claim 12, wherein the transaction contour is based upon five “

C'"'"'s”

of credit.

17. The system of claim 1, wherein a validation process is used to indicate how loans are evaluated and how credit quality and credit access are to be maintained and improved.

19. The system of claim 1, wherein users interact with the loan evaluation system over one or more networks in order to evaluate the loan applications.

20. The system of claim 1, wherein the processor-based system includes one or more servers or a standalone computer system.

18. The system of claim 18, wherein the validation process involves an examination and interpretation of underwriting model inputs, processing, and outputs.

21. A processor-implemented method for evaluating loan applications, comprising:

operating a loan evaluation system on a processor-based system for evaluating loan applications;

operating a credit assessment framework on the processor-based system;

said credit assessment framework using business context and a plurality of factors in order to generate a categorization of credit risk for each of the loan applications to be evaluated;

wherein the generated categorization is stored in a computer-readable storage medium and is relative to a plurality of primary underwriting factors via a transaction contour identifier;

wherein the transaction contour identifier provides a single number for rating strengths and weaknesses relative to the primary underwriting factors;

said credit assessment framework further including a computer system for incorporating judgmental components when generating the categorization of credit risk.

22. Computer-readable storage medium or mediums encoded with instructions that cause a computer to perform a method for evaluating loan applications, said method comprising the steps of:

operating a loan evaluation system on a processor-based system for evaluating loan applications;

operating a credit assessment framework on the processor-based system;

said credit assessment framework using business context and a plurality of factors in order to generate a categorization of credit risk for each of the loan applications to be evaluated;

wherein the generated categorization is stored in a computer-readable storage medium and is relative to a plurality of primary underwriting factors via a transaction contour identifier;

wherein the transaction contour identifier provides a single number for rating strengths and weaknesses relative to the primary underwriting factors;

said credit assessment framework further including a computer system for incorporating judgmental components when generating the categorization of credit risk.