Automated loan evaluation system
First Claim
1. A method comprising:
- (a) obtaining a first payment history, a first Loan-to-Value (“
LTV”
). a first credit rating, and at least one add-on loan factor for a particular borrower of a loan, and a set of historic loan data comprising records having historic payment histories, historic LTVs, historic credit ratings, and at least one historic add on loan factor;
(b) separating the records of historic loan data into a first pool based on the absence of the at least one historic add-on factor;
(c) grouping the first pool into groups based on the historic payment histories, the historic LTVs, and the historic credit ratings;
(d) determining a first probability of delinquency for the particular borrower by calculating a first incidence of delinquency of one group of the first pool;
(e) separating the records of historic loan data into a second pool based on whether the records contain the at least one historic add-on factor;
(f) grouping the second pool into sub-pools based on the at least one historic add-on factor;
(g) determining a second probability of delinquency for the particular borrower by calculating a second incidence of delinquency of one subpool of the second pool; and
(h) combining the first probability of delinquency with the second probability of delinquency to determine the total probability of delinquency for the particular borrower.
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Accused Products
Abstract
In at least one aspect, the present invention comprises a system and method of creating a probability of delinquency database using historical loan data and a plurality of loan factors, for use in determining a loan rate, the method comprising: identifying a plurality of multi-level loan factors; creating a pool from the historic loan data, wherein the first pool contains records relating to the plurality of multi-level loan factors; separating the pool into a set of groups based on the multi-level loan factors, calculating a probability of delinquency for each group; and arranging the probability of delinquency for each group into a database such that the probability of delinquency for each group is accessible for any combination of multi-level loan factors.
110 Citations
6 Claims
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1. A method comprising:
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(a) obtaining a first payment history, a first Loan-to-Value (“
LTV”
). a first credit rating, and at least one add-on loan factor for a particular borrower of a loan, and a set of historic loan data comprising records having historic payment histories, historic LTVs, historic credit ratings, and at least one historic add on loan factor;(b) separating the records of historic loan data into a first pool based on the absence of the at least one historic add-on factor; (c) grouping the first pool into groups based on the historic payment histories, the historic LTVs, and the historic credit ratings; (d) determining a first probability of delinquency for the particular borrower by calculating a first incidence of delinquency of one group of the first pool; (e) separating the records of historic loan data into a second pool based on whether the records contain the at least one historic add-on factor; (f) grouping the second pool into sub-pools based on the at least one historic add-on factor; (g) determining a second probability of delinquency for the particular borrower by calculating a second incidence of delinquency of one subpool of the second pool; and (h) combining the first probability of delinquency with the second probability of delinquency to determine the total probability of delinquency for the particular borrower. - View Dependent Claims (2, 3, 4, 5, 6)
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Specification