Lender direct credit evaluation and loan processing system

• US 5,930,776 A
• Filed: 03/10/1997
• Issued: 07/27/1999
• Est. Priority Date: 11/01/1993
• Status: Expired due to Term

• Current Assignee: CU Direct Corp.
• Original Assignee: Golden 1 Credit Union
• Inventors: Dykstra, Diana R., Wade, Patricia M.
• Primary Examiner(s): Tkacs, Stephen R.
• Application Number:
  US08/815,376
• Time in Patent Office: 869 Days
• Field of Search: 705/30, 705/34, 705/35, 705/38, 705/39, 705/42, 705/43, 705/44, 705/21, 235/375, 235/379, 235/380, 235/381, 380/24
• 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 40/02 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 40/08 Insurance

Abstract

An apparatus and method for automatic credit evaluation and loan processing is disclosed. The apparatus includes a central processing unit which has capabilities for communicating with off-site remote access terminals. The central processing unit also includes facsimile transmission capabilities as well as capabilities for communicating with credit bureau computers. Mass storage capabilities are included for storing program modules executable on the central processing unit and for maintaining databases. Program modules are provided for remote access security, credit bureau information processing, credit scoring, message display, and facsimile generation. In operation, the central processing unit is accessed from a remote terminal, loan application information is entered into the remote terminal, credit bureau information is accessed by the apparatus, credit scoring is performed, and a loan application is approved or declined. All steps, except for the entering of loan application information into the remote terminal, are fully automated, require no intermediate human intervention, and no intermediate handling of paper records. Application status is provided to the user via a visual display on the remote access terminal and hard copy confirmation to the user and lender via facsimile transmission.

Claims

1. A computer-based credit evaluation and loan application processing apparatus, comprising:

(a) a central processing unit;

(b) credit scoring module means associated with said central processing unit for determining a first stage numerical credit score based on loan application information pertaining to a potential borrower and a credit scoring model associated with a selected lender, for determining a second stage numerical credit score based on credit report information pertaining to said potential borrower and said credit scoring model, and for determining a loan approval status for said potential borrower by comparing said loan application information and the numerical sum of said first and second stage credit scores with a loan matrix associated with said lender; and

(c) means associated with said central processing unit for generating a lender report based on said loan approval status.

2. An apparatus as recited in claim 1, further comprising remote access terminal means associated with said central processing unit for entering loan application information pertaining to a potential borrower and selecting a lender for loan approval.

3. An apparatus as recited in claim 1, further comprising credit bureau processing module means associated with said central processing unit for transmitting an information request to a credit bureau associated with said selected lender and for receiving a credit report from said credit bureau pertaining to said potential borrower.

4. An apparatus as recited in claim 1, further comprising means for visually displaying said lender report.

5. An apparatus as recited in claim 1, further comprising:

(a) means for transmitting by facsimile an image of a merchant report containing said loan approval status; and

(b) means for transmitting by facsimile an image of a lender report containing said loan approval status.

6. A computer-based apparatus for automatic evaluation of credit and determination of loan application approval for a potential borrower, comprising:

(a) a central processing unit;

(b) remote access terminal means associated with said central processing unit for entering loan application information pertaining to a potential borrower and selecting a lender for loan approval;

(c) credit scoring module means associated with said central processing unit for selecting a credit scoring model associated with said selected lender, for inputting loan application information pertaining to said potential borrower into said credit scoring model and determining a first stage numerical credit score, for inputting credit report information pertaining to said potential borrower into said credit scoring model and determining a second stage numerical credit score, and for determining a loan approval status for said potential borrower by comparing said loan application information and the numerical sum of said first and second stage credit scores with a loan matrix associated with said lender; and

(d) means associated with said central processing unit for generating a lender report based on said loan approval status and transmitting said lender report to a remote receiving unit for displaying said lender report.

7. An apparatus as recited in claim 6, further comprising credit bureau processing module means associated with said central processing unit for transmitting an information request to a credit bureau associated with said selected lender and for receiving a credit report from said credit bureau pertaining to said potential borrower.

8. An apparatus as recited in claim 6, further comprising:

(a) means for transmitting by facsimile an image of a merchant report containing said loan approval status; and

(b) means for transmitting by facsimile an image of a lender report containing said loan approval status.

9. A computer-based credit evaluation and loan application processing apparatus, comprising:

(a) a computer;

(b) a credit scoring program executable by said computer, wherein said credit scoring program determines a first stage numerical credit score based on a credit scoring model associated with a selected lender and loan application information pertaining to a potential borrower, wherein said credit scoring program determines a second stage numerical credit score based on credit report information pertaining to said potential borrower and said credit scoring model, and wherein said credit scoring program determines a loan approval status for said potential borrower by comparing said loan application information and the numerical sum of said first and second stage credit scores with a loan matrix associated with said lender; and

(c) means associated with said computer for generating a lender report based on said loan approval status.

10. An apparatus as recited in claim 9, further comprising a remote access terminal associated with said computer and providing for entry of said loan application information and for selecting said lender.

11. A credit evaluation and loan application processing computer program, comprising a set of instructions stored on a media accessible by a computer and executable on said computer, wherein said computer program performs the steps of:

determining a first stage numerical credit score based on a credit scoring model associated with a selected lender and loan application information pertaining to a potential borrower,

determining a second stage numerical credit score based on credit report information pertaining to said potential borrower and said credit scoring model,

determining a loan approval status for said potential borrower by comparing said loan application information and the numerical sum of said first and second stage credit scores with a loan matrix associated with said lender, and

determining a lender report based on said loan approval status.