Computerized systems and methods for facilitating the flow of capital through the housing finance industry

• US 8,244,628 B1
• Filed: 07/07/2010
• Issued: 08/14/2012
• Est. Priority Date: 06/13/2000
• Status: Expired due to Term

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Williams, Michael J., Kopperman, Peter G., Voth, David N., Plotnick, Richard N., Simon, Peter A., Thurow, Kimberly J., Koch, Michael W., Schulz, Martin T.
• Primary Examiner(s): Hammond, III, Thomas M
• Application Number:
  US12/831,893
• Time in Patent Office: 769 Days
• Field of Search: 705 35- 45
• 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
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A computer implemented data processing system comprises a pricing engine and user interface program logic. The pricing engine is configured to calculate a price for an individual mortgage loan for a sale of the individual mortgage loan from a loan originator to a secondary mortgage market purchaser. The price is calculated prior to closing of the mortgage loan based on mortgage loan application data for a borrower associated with the mortgage loan. The user interface logic is configured to generate one or more screen displays configured to present the price to the loan originator prior to closing of the loan. The one or more screen displays are also configured to receive a commitment from the loan originator for the sale of the individual mortgage loan to the secondary mortgage market purchaser.

Claims

1. A computer-implemented method for valuing an individual mortgage loan for sale in a secondary mortgage market online before sale of the individual mortgage loan, the individual mortgage loan being from an online mortgage loan system, being associated with a borrower, and having an identifier and a locked gross interest rate, the method comprising:

retrieving, at a computer server, information regarding the individual mortgage loan from a storage device of the online mortgage loan system using the identifier, the information including the gross interest rate and a product type;

retrieving, at the computer server, a required yield associated with the product type;

determining, at the computer server, adjustments to the required yield based on at least one of (1) a credit risk associated with the borrower, (2) a loan-to-value ratio, and (3) loan purpose;

determining, at the computer server, an interest rate portfolio yield based on at least the gross interest rate and the adjustments;

determining, at the computer server, a yield difference based on at least the required yield and the interest rate portfolio yield;

retrieving, at the computer server, a trade-off ratio that reflects what is paid in price for one basis-point in yield;

determining, at the computer server, a price difference based at least on the yield difference and the trade-off ratio; and

determining, at the computer server, a price for sale of the individual mortgage loan to a secondary mortgage market purchaser based at least on the price difference.

2. A method according to claim 1, wherein the required yield is retrieved from a current yield/trade-off schedule.

3. A method according to claim 1, wherein determining the interest rate portfolio yield includes calculating a difference between the gross interest rate and the adjustments.

4. A method according to claim 1, wherein determining the yield difference includes calculating a difference between the required yield and the interest rate portfolio yield.

5. A method according to claim 1, wherein determining the price difference includes multiplying the yield difference and the trade-off ratio.

6. A method according to claim 1, wherein the individual mortgage loan is selected from a plurality of approved mortgage loan products identified by an underwriting engine associated with the online mortgage loan system.

7. A method according to claim 6, wherein the underwriting engine generates underwriting recommendations based at least in part on preselected underwriting guidelines of a secondary mortgage market purchaser.

8. A system for valuing an individual mortgage loan for sale in a secondary mortgage market before sale of the individual mortgage loan, the individual mortgage loan being from an online mortgage loan system, being associated with a borrower and having an identifier and a locked gross interest rate, the system comprising:

a processing unit; and

a storage device coupled to the processing unit, the storage device being configured to store program elements, wherein the program elements are executable by the processing unit to implement;

a user interface coupled to the online mortgage loan system and configured to receive a request to value the individual mortgage loan; and

a pricing engine coupled to the user interface and configured to

retrieve information regarding the individual mortgage loan using the identifier, the information including the gross interest rate and a product type;

retrieve a required yield associated with the product type;

determine adjustments to the required yield based on at least one of (1) a credit risk associated with the borrower, (2) a loan-to-value ratio, and (3) loan purpose;

determine an interest rate portfolio yield based on at least the gross interest rate and the adjustments;

determine a yield difference based on at least the required yield and the interest rate portfolio yield;

retrieve a trade-off ratio that reflects what is paid in price for one basis-point in yield;

determine a price difference based at least on the yield difference and the trade-off ratio; and

determine a price for sale of the individual mortgage loan to a secondary mortgage market purchaser based at least on the price difference.

9. A system according to claim 8, wherein the storage device is configured to store at least the information regarding the individual mortgage loan.

10. A system according to claim 8, wherein the storage device is further configured to store a current yield/point trade-off schedule and a set of trade-off ratios.

11. A system according to claim 8, wherein determining the interest rate portfolio yield includes calculating a difference between the gross interest rate and the adjustments.

12. A system according to claim 8, wherein determining the yield difference includes calculating a difference between the required yield and the interest rate portfolio yield.

13. A system according to claim 8, wherein determining the price difference includes multiplying the yield difference and the trade-off ratio.

14. A system according to claim 8, wherein the online mortgage loan system includes an underwriting engine and the individual mortgage loan is selected from a plurality of approved mortgage loan products identified by the underwriting engine.

15. A system according to claim 14, wherein the underwriting engine generates underwriting recommendations based at least in part on preselected underwriting guidelines of a secondary mortgage market purchaser.

16. A system for valuing an individual mortgage loan for sale in a secondary mortgage market before sale of the individual mortgage loan, the individual mortgage loan from an online mortgage loan system pipeline, associated with a borrower and having an identifier and a locked gross interest rate, the system comprising:

a processing unit; and

a storage device coupled to the processing unit, the storage device being configured to store program elements, wherein the program elements are executable by the processing unit to implement a method comprising

retrieving information regarding the individual mortgage loan using the identifier, the information including the gross interest rate and a product type;

retrieving a required yield associated with the product type;

determining adjustments to the required yield based on at least one of (1) a credit risk associated with the borrower, (2) a loan-to-value ratio, and (3) loan purpose;

determining an interest rate portfolio yield based on at least the gross interest rate and the adjustments;

determining a yield difference based on at least the required yield and the interest rate portfolio yield;

retrieving a trade-off ratio that reflects what is paid in price for one basis-point in yield;

determining a price difference based at least on the yield difference and the trade-off ratio; and

determining a price for sale of the individual mortgage loan to a secondary mortgage market purchaser based at least on the price difference.

17. A system according to claim 16, wherein the storage device is further configured to store at least the information regarding the individual mortgage loan.

18. A system according to claim 16, wherein the storage device is further configured to store a current yield/point trade-off schedule and a set of trade-off ratios.

19. A system according to claim 16, wherein determining the interest rate portfolio yield includes calculating a difference between the gross interest rate and the adjustments.

20. A system according to claim 16, wherein determining the yield difference includes calculating a difference between the required yield and the interest rate portfolio yield.

21. A system according to claim 16, wherein determining the price difference includes multiplying the yield difference and the trade-off ratio.