System and method for originating loans

• US 7,146,337 B1
• Filed: 09/13/2000
• Issued: 12/05/2006
• Est. Priority Date: 09/13/2000
• Status: Expired due to Fees

• Current Assignee: Precept Corporation
• Original Assignee: Precept Corporation
• Inventors: Heil, Joseph B., Scavone, Frank R., Ward, Perry S.
• Primary Examiner(s): Garg, Yogesh C.
• Application Number:
  US09/661,271
• Time in Patent Office: 2,274 Days
• Field of Search: 705/38, 705/37, 705/35, 705/26, 709/229
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention is directed to a method of originating a loan. The method includes the steps of receiving loan request information from an applicant, developing underwriting information relating to the loan, and storing the loan request and the underwriting information so that it is accessible to a plurality of prospective lenders. The method further includes the steps of receiving at least one bid from at least one of the prospective lenders and storing the bid so that the applicant has an opportunity to consider and accept the bid. A corresponding software application and a system are also discussed.

Claims

1. A method of facilitating a loan origination comprising:

receiving from potential borrowers applications for loans to be secured by properties;

creating a computer database for one or more potential loans, said database including underwriting information for said loans, said underwriting information not constituting a loan approval but including net cash flow information for the properties, property site inspection information and credit information pertaining to the borrowers;

providing a plurality of prospective lending entities access via a communication network to at least part of the underwriting information in said computer database;

receiving via a communication network bids from the plurality of prospective lending entities in an auction for said loans using the underwriting information they accessed;

informing borrowers or their representatives of at least one of said bids for their loans; and

closing a loan when one of said bids for that loan is accepted by one of the borrowers or their representatives.

2. The method of claim 1, further comprising:

receiving a selection of one of a plurality of underwriting levels; and

developing underwriting information corresponding to the selected level of underwriting.

3. The method of claim 2 wherein the plurality of underwriting levels includes at least first, second and third underwriting levels.

4. The method of claim 1 wherein the underwriting information comprises at least one of an appraisal report, an environmental report and an engineering report.

5. The method of claim 1 further comprising the step of providing representations and warranties that specific procedures were followed in developing the underwriting information.

6. The method of claim 1 further comprising the steps of:

receiving information in support of the potential loan; and

tracking the information that is received.

7. The method of claim 6 wherein the information received is tracked electronically.

8. The method of claim 1 further comprising the step of receiving a loan request that includes financing preferences and/or requirements specified by an applicant making the loan request.

9. The method of claim 1 further comprising:

receiving from an applicant for the loan a designation of at least one lender whom the applicant does not want to be informed of applicant'"'"'s request for the loan; and

blocking said lender from access to information about applicant'"'"'s request for the loan.

10. The method of claim 1 further comprising:

receiving from an applicant for the loan a designation of at least one lender to be notified of applicant'"'"'s request for the loan; and

informing said lender of applicant'"'"'s request for the loan.

11. The method of claim 1 further comprising receiving at least one inquiry relating to the loan request, the underwriting information, or a bid.

12. The method of claim 11 further comprising:

storing the at least one inquiry; and

providing access to the at least one inquiry to the prospective lenders.

13. The method of claim 12 further comprising the step of screening information in an inquiry.

14. The method of claim 12 further comprising the step of screening information in an inquiry to minimize disclosure of an identity of a prospective lender who made a bid.

15. The method of claim 11 further comprising the step of storing at least one response to an inquiry.

16. The method of claim 15 further comprising the step of screening information in a response.

17. The method of claim 15 further comprising the step of screening information in a response to minimize disclosure of an identity of a prospective lender who made a bid.

18. The method of claim 15 further comprising the step of providing prospective lenders access to the stored response.

19. The method of claim 15 further comprising the step of providing access to the stored response to an applicant for the loan.

20. The method of claim 1 wherein the opportunity to submit at least one bid is for a predetermined period of time.

21. The method of claim 1 wherein the auction comprises a review phase and a bidding phase and no bid is accepted during the review phase.

22. The method of claim 21 further comprising providing a plurality of bidding periods during the bidding phase.

23. The method of claim 1 wherein the opportunity to submit at least one bid comprises providing a bidding period during which all bids received from the prospective lenders are not accessible to other prospective lenders.

24. The method of claim 1 further comprising providing a bid evaluation period during which the ability to submit, modify, or cancel bids is limited.

25. The method of claim 1 wherein the opportunity to submit at least one bid comprises providing an open bidding period during which all bids received from prospective lenders are accessible to the prospective lenders.

26. The method of claim 25 wherein an identity of each prospective lender who made the bid is not accessible to the prospective lenders.

27. The method of claim 1 wherein the ability to submit, modify or cancel bids is limited.

28. The method of claim 1 further comprising providing at least one lender who is contractually obligated to make a bid if no more than a predetermined number of bids is available for consideration.

29. The method of claim 1 wherein the bid sets forth terms for a commitment to make the potential loan.

30. The method of claim 1 wherein the bid is a multi-parameter bid.

31. The method of claim 1 further comprising the step of developing additional underwriting information after acceptance of the bid.

32. The method of claim 31 wherein the document is automatically generated.

33. The method of claim 1 further comprising the step of providing a document for memorializing the bid in a commitment between a borrower and the prospective lender that made the bid.

34. The method of claim 33 wherein the document is automatically generated.

35. The method of claim 1 further facilitating closing the loan using documents based on the same underlying form regardless of which lender'"'"'s bid is accepted.

36. The method of claim 1 further comprising the step of receiving an underwriting review from at least one national statistical rating agency.

37. The method of claim 36 further comprising the step of providing at least one prospective lender access to at least part of the received underwriting information.

38. A software program embodied in a computer-readable medium for processing financing requests, the software program configuring a computer to:

receive from potential borrowers applications for loans to be secured by properties;

receive underwriting information relating to potential loans;

create a computer database for one or more potential loans, said database including underwriting information for said loans, said underwriting information not constituting a loan approval but including net cash flow information for the properties, property site inspection information and credit information pertaining to the borrowers;

provide a plurality of prospective lending entities access via a communication network to at least part of the underwriting information in said computer database;

receive via the communication network bids from the plurality of prospective lending entities in an auction for said loans using the underwriting information they accessed;

inform borrowers or their representatives of at least one of said bids for their loans; and

close a loan when one of said bids for that loan is accepted by one of the borrowers or their representatives.

39. The software program of claim 38 configuring the server computer to:

receive a selection of one of a plurality of underwriting levels; and

receive underwriting information corresponding to the selected level of underwriting.

40. The software program of claim 39 wherein the plurality of underwriting levels includes at least first, second and third underwriting levels.

41. The software program of claim 38 wherein the underwriting information comprises at least one of an appraisal report, an environmental report and an engineering report.

42. The software program of claim 38 configuring the server computer to:

receive information in support of the potential loan; and

track the information that is received.

43. The software program of claim 42 wherein the information received is tracked on-line.

44. The software program of claim 38 configuring the server computer to receive a loan request that includes financing preferences and/or requirements specified by an applicant making the loan request.

45. The software program of claim 38 configuring the server computer to:

receive from an applicant for the loan a designation of at least one lender whom the applicant does not want to be informed of applicant'"'"'s request for the loan; and

block said lender from access to information about applicant'"'"'s request for the loan.

46. The software program of claim 38 configuring the server computer to:

receive from an applicant for the loan a designation of at least one lender to be notified of applicant'"'"'s request for the loan; and

inform said lender of applicant'"'"'s request for the loan.

47. The software program of claim 38 configuring the server computer to receive at least one inquiry relating to the underwriting information.

48. The software program of claim 47 configuring the server computer to:

store the at least one inquiry; and

provide access to the at least one inquiry to the prospective lenders.

49. The software program of claim 47 configuring the server computer to screen information in an inquiry.

50. The software program of claim 47 configuring the server computer to screen information in an inquiry to minimize disclosure of an identity of a prospective lender who made a bid.

51. The software program of claim 47 configuring the server computer to store at least one response to an inquiry.

52. The software program of claim 51 configuring the server computer to screen information in a response.

53. The software program of claim 51 configuring the server computer to screen information in a response to minimize disclosure of an identity of a prospective lender who made a bid.

54. The software program of claim 51 configuring the server computer to provide prospective lenders access to the stored response.

55. The software program of claim 51 configuring the server computer to provide access to the stored response to an applicant for the loan.

56. The software program of claim 38 wherein the bid may be considered for a predetermined period of time.

57. The software program of claim 38 wherein the auction comprises a review phrase and a bidding phase and no bid is accepted during the review phase.

58. The software program of claim 57 wherein the underwriting information is configured to provide a plurality of bidding periods during the bidding phase.

59. The software program of claim 38 configuring the server computer to provide a bidding period during which all bids received from the prospective lenders are not accessible to other prospective lenders.

60. The software program of claim 38 configuring the server computer to provide a bid evaluation period during which the ability to submit, modify, or cancel bids is limited.

61. The software program of claim 38 configuring the server computer to provide an open bidding period during which all bids received from prospective lenders are accessible to the prospective lenders.

62. The software program of claim 38 wherein an identity of each prospective lender who made the bid is not accessible to the prospective lenders.

63. The software program of claim 38 wherein the ability to submit, modify or cancel bids is limited.

64. The software program of claim 38 wherein the bid sets forth terms for the potential loan.

65. The software program of claim 38 wherein the bid is a multi-parameter bid.

66. The software program of claim 38 configuring the server computer to develop additional underwriting information after acceptance of the bid.

67. The software program of claim 38 configuring the server computer to provide a document for memorializing the bid in a commitment between a borrower and the prospective lender that made the bid.

68. The software program of claim 67 wherein the document is automatically generated.

69. The software program of claim 38 configuring the server computer to close the loan using documents having the same form regardless of which lender'"'"'s bid is accepted.

70. The software program of claim 38 configuring the server computer to receive underwriting information from at least one national statistical rating agency.

71. The software program of claim 70 configuring the server computer to provide at least one prospective lender access to at least part of the received underwriting information.