Mortgage loan customization system and process

• US 7,089,503 B1
• Filed: 04/03/2002
• Issued: 08/08/2006
• Est. Priority Date: 04/04/2001
• Status: Active Grant

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Spellman, Robert, Wilson, Barbara Joan, Bloomquist, Eric
• Primary Examiner(s): Sax, Steven P.
• Application Number:
  US10/115,569
• Time in Patent Office: 1,588 Days
• Field of Search: 345/780, 345744-747, 345/772, 345748-749, 707/3, 707/10, 705 30- 45, 705/38, 705400-410, 705/10, 705/26, 715/780, 715/773, 715/965, 715/747
• US Class Current: 715/780
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A computerized mortgage loan system and process to enable borrowers to design mortgage loans that meet their particular individual needs and financial goals, and that can be adapted to fit changing needs and goals is provided. The loan requirements of the borrower are obtained and applied to a set of rules for combining loan product features. One or more loan recommendations are determined and presented to the borrower. The loan recommendations include customized combinations of loan features based on the loan requirements of the borrower and the rules.

Claims

1. A computer-implemented method for providing a borrower with a mortgage loan that is customized to meet the requirements of the borrower, comprising the steps of:

obtaining loan requirements from the borrower by soliciting responses from a user using a computer-implemented user interface comprising at least one input device and at least one output device,

determining at least one mortgage loan product having a plurality of loan features, the plurality of loan features including interest rate and loan term, and the plurality of loan features further including a customized combination of loan features, the customized combination of loan features being selected to meet the loan requirements from the borrower, wherein the customized combination of loan features includes a plurality of the loan features selectable from the following;

fewer than 12 months of payments, graduated payments, portability, payment coverage for missing a loan payment without adverse credit history consequences, a borrower-selected payment date selectable by the borrower from any day through the end of each month, and a borrower-selected payment frequency selectable by the borrower from a plurality of possible payment frequencies, including bi-weekly and monthly,

applying the loan requirements from the borrower to a set of stored rules for combining loan features, the set of stored rules being configured to assess compatibility of the customized combination of loan features with each other,

calculating at least one of a price and an interest rate for at least one customized mortgage loan product for presentation to the borrower together with the at least one customized loan product, wherein calculating of the at least one of a price and an interest rate is executed by a data processor, and

wherein the computer-implemented user interface solicits the response by providing a pre-fill form/questionnaire comprising a series of questions configured to solicit information concerning how the borrower ranks the importance of various available loan features that may subsequently be selected and included as part of the customized combination of loan features in the customized mortgage loan product.

2. The method of claim 1, wherein the step of calculating at least one of a price and an interest rate for the at least one customized loan product involves the steps of calculating a first price at which a secondary market purchaser would purchase the at least one customized loan product and calculating a second price based on the first price for presentation to the borrower.

3. The method of claim 2, wherein the step of calculating the first price involves retrieving a required yield from a source of current pricing for conventional loans and calculating adjustments to the required yield associated with the features of the at least one customized loan product.

4. The method of claim 3, wherein the step of calculating adjustments to the required yield includes applying the features of the at least one customized loan product to a set of rules for determining the price adjustments.

5. The method of claim 2, wherein the step of calculating the second price involves adjusting the first price to reflect a lender add-on.

6. The method of claim 1, wherein the features of the at least one customized loan product include loan collateral maintenance.

7. The method of claim 6, wherein the loan collateral maintenance feature is a managed home maintenance plan, the managed home maintenance plan providing the borrower with coverage to pay at least a portion of the cost of qualifying home repairs during at least a portion of the term of the mortgage.

8. The method of claim 1, wherein the features of the at least one customized loan product include payment coverage for a missed loan payment, the payment coverage being configured such that loan payment may be missed by the borrower without adverse impact on the borrower'"'"'s credit history.

9. The method of claim 1, wherein a pre-fill form/questionnaire is provided over a global computer network.

10. The method of claim 9, wherein the global computer network is the Internet.

11. The method of claim 1, wherein the loan requirements of the borrower include at least one of specific loan product features desired by the borrower and financial goals of the borrower.

12. The method of claim 1, further comprising the steps of revising the loan requirements of the borrower and determining at least one new customized loan product having features based on the revised loan requirements if the at least one customized loan product based on the borrower'"'"'s previous loan requirements is not selected by the borrower.

13. The method of claim 1, further comprising the step of processing an application for a customized loan selected by the borrower.

14. The method of claim 13, further comprising the step of obtaining a commitment from the secondary market purchaser to purchase the customized loan.

15. The method of claim 14, further comprising the steps of closing the customized loan and selling the customized loan to the secondary market purchaser.

16. The method of claim 15, further comprising the steps of servicing the customized loan.

17. A computer-implemented system for providing a borrower with a loan that is customized to meet the requirements of the borrower, comprising:

input means for obtaining loan requirements from the borrower by soliciting responses from a user trough a user interface comprising at least one input device and at least one output device,

means for determining at least one loan product having a plurality of loan features, the plurality of loan features including interest rate and loan term, and the plurality of loan features further including a customized combination of loan features, the customized combination of loan features being selected to meet the loan requirements of the borrower, wherein the customized combination of loan features includes a plurality of the loan features selectable from the following;

fewer than 12 months of payments, graduated payments, portability, payment coverage for missing a loan payment without adverse credit history consequences, a borrower-selected payment date selectable by the borrower from any day through the end of each month, and a borrower-selected payment frequency selectable by the borrower from a plurality of possible payment frequencies including bi-weekly and monthly,

means for applying the loan requirements from the borrower to a set of stored rules for combining loan features, the set of stored rules being configured to assess compatibility of the customized combination of loan features with each other,

means for calculating at least one of a price and an interest rate for the at least one customized mortgage loan product for presentation to the borrower together with the at least one customized loan product, wherein calculating of the at least one of a price and an interest rate is executed by a data processor, the data processor being coupled to the user interface through a global computer network, and

wherein the input means solicits the response by providing a pre-fill form/questionnaire comprising a series of questions configured to solicit information concerning how the borrower ranks the importance of various available loan features that may subsequently be selected and included as part of the customized combination of loan features in the customized mortgage loan product, the input means providing the pre-fill form/questionnaire by way of the global computer network.

18. The system of claim 17, wherein the means for calculating a price for the at least one customized loan product includes means for calculating a first price at which a secondary market purchaser will purchase the at least one customized loan product, and means for calculating a second price based on the first price for presentation to the borrower.

19. The system of claim 18, wherein the means for calculating the first price includes means for retrieving a required yield from a source of current pricing for conventional loans, and means for calculating adjustments to the required yield associated with the features of the at least one customized loan product.

20. The system of claim 19, wherein the means for calculating adjustments to the required yield includes means for applying the features of the at least one customized loan product to a set of rules for determining the price adjustments.

21. The system of claim 18, wherein the means for calculating the second price includes means for adjusting the first price to reflect a lender add-on.

22. The system of claim 17, wherein the features of the at least one customized loan recommendation include loan collateral maintenance.

23. The system of claim 22, wherein the loan collateral maintenance feature is a managed home maintenance plan.

24. The system of claim 17, wherein the features of the at least one customized loan recommendation include payment coverage for a missed loan payment, the payment coverage being configured such that the loan payment may be missed by the borrower without adverse impact on the borrower'"'"'s credit history.

25. The system of claim 17, wherein the user is the borrower, and wherein the global computer network is the Internet.

26. The system of claim 17, wherein the loan requirements of the borrower include at least one of specific loan product features desired by the borrower and financial goals of the borrower.

27. The system of claim 17, further comprising means for revising the loan requirements of the borrower and means for determining at least one new customized loan product having features based on the revised loan requirements if the at least one customized loan product based on the borrower'"'"'s previous loan requirements is not selected by the borrower.

28. The system of claim 17, further comprising means for processing an application for a customized loan product selected by the borrower.

29. The system of claim 28, further comprising means for obtaining a commitment from the secondary market purchaser to purchase the customized loan.

30. The system of claim 29, further comprising means for closing the customized loan and means for selling the customized loan to the secondary market purchaser.

31. The system of claim 17, wherein the means for determining at least one loan product includes a matrix of all possible combinations of the input loan requirements and the loan features.