System and method for auditing loan portfolios and loan servicing portfolios
First Claim
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1. A computer-assisted method of auditing loan portfolios and loan servicing portfolios wherein loans are of a plurality of types comprising the steps ofstoring on a server a computer record for each loan in a portfolio;
- storing on the server rules which comprise each current and historical legal regulation and any investor-specific parameter applicable to each type of loan;
storing on the server a set of selectable audit types;
storing on the server a set of questions to determine compliance with each rule, each question keyed to one or more audit types;
periodically adding questions to the set of questions as new rules are promulgated;
storing on the server a set of sampling criteria comprising historical error rates, confidence intervals, and precision;
selecting one or more selected audit types and sampling criteria by inputting appropriate selection data with an input device;
automatically selecting an audit sample subset of loan records in response to said selection of one or more selected audit types and sampling criteria;
automatically generating the audit sample subset of loan records and a checklist of questions appropriately customized for the one or more selected audit types by automatically forming the checklist of questions from those keyed to the one or more selected audit types;
storing auditor'"'"'s answers to the checklist questions, including any exceptions, in an audit trail database on a server, storing any auditor recommendations pertaining to any of the exceptions in the audit trail database; and
automatically generating management reports comprising the sampling criteria, an exception rate pertaining to the subset, a list of any loans in the subset which have exceptions and the exceptions pertaining to each such loan, and any recommendations for cure of each type of exception found in sample subset.
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Abstract
A computer-assisted method of auditing of loan portfolios and loan servicing portfolios wherein the loans are of a plurality of types by keying questions which determine compliance with a large, complex, and constantly changing set legal requirements to a set of selectable audit types. When an audit type is selected, the system uses sampling methods to select a set of loans of that type to audit and generates a checklist comprising a set of questions keyed to the particular type of audit.
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Citations
26 Claims
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1. A computer-assisted method of auditing loan portfolios and loan servicing portfolios wherein loans are of a plurality of types comprising the steps of
storing on a server a computer record for each loan in a portfolio; -
storing on the server rules which comprise each current and historical legal regulation and any investor-specific parameter applicable to each type of loan;
storing on the server a set of selectable audit types;
storing on the server a set of questions to determine compliance with each rule, each question keyed to one or more audit types;
periodically adding questions to the set of questions as new rules are promulgated;
storing on the server a set of sampling criteria comprising historical error rates, confidence intervals, and precision;
selecting one or more selected audit types and sampling criteria by inputting appropriate selection data with an input device;
automatically selecting an audit sample subset of loan records in response to said selection of one or more selected audit types and sampling criteria;
automatically generating the audit sample subset of loan records and a checklist of questions appropriately customized for the one or more selected audit types by automatically forming the checklist of questions from those keyed to the one or more selected audit types;
storing auditor'"'"'s answers to the checklist questions, including any exceptions, in an audit trail database on a server, storing any auditor recommendations pertaining to any of the exceptions in the audit trail database; and
automatically generating management reports comprising the sampling criteria, an exception rate pertaining to the subset, a list of any loans in the subset which have exceptions and the exceptions pertaining to each such loan, and any recommendations for cure of each type of exception found in sample subset. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9)
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10. A computer based system for auditing loan and loan servicing portfolios comprising
a workstation for use by a loan portfolio auditor a server on which is stored records for each loan origination and loan servicing in a portfolio, rules which comprise each current and historical legal regulation and any investor-specific parameter applicable to each type of loan and loan servicing, a set of sampling criteria, a set of questions to determine compliance with each of the rules, each question keyed to one or more audit types, a set of selectable audit types, and a computer program adapted to automatically select an audit sample subset of loan origination records or loan servicing records according to one or more selected audit type and the set of sampling criteria, and automatically create and transmit to an auditor client workstation a checklist of questions keyed to the selected audit type.
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23. A computer assisted method of auditing loan portfolios or loan servicing portfolios, wherein loans in the loan portfolios or the loan servicing portfolios are of a plurality of distinctly different types for auditing purposes, the method comprising the steps of:
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storing in a memory a computer record for each loan in a portfolio;
storing in the memory rules which comprise current and historical legal regulations and investor-specific parameters applicable to each type of loan;
storing in the memory a set of selectable audit types;
storing in the memory a set of questions to determine compliance with each rule, with each question keyed to at least one audit type;
selecting a particular audit type and sampling criteria for selecting a subset of records to be audited by inputting appropriate selection data with an input device;
automatically selecting an audit sample subset of records in response to said selection of the particular type and sampling criteria; and
automatically generating an audit checklist of questions appropriately customized for the selected audit type by automatically forming the audit checklist from those questions keyed to the particular audit type. - View Dependent Claims (24, 25, 26)
specifying whether current or historical legal regulations and investor-specific parameters are to be applied in creating the audit checklist.
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Specification