Systems and methods for determining the likelihood that a loan closes

• US 8,280,806 B1
• Filed: 09/13/2011
• Issued: 10/02/2012
• Est. Priority Date: 11/04/2003
• Status: Active Grant

• Current Assignee: Freddie Mac
• Original Assignee: Freddie Mac
• Inventors: Bradley, Michael G., Gordon, J. Douglas, Klena, Matthew J., Sims, Pamela W.
• Primary Examiner(s): Robinson, Kito R
• Application Number:
  US13/231,327
• Time in Patent Office: 385 Days
• Field of Search: 705/38, 705/35
• 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 40/06 Asset management; Financial planning or analysis

Abstract

Systems and methods are provided for determining an indication that an application for a mortgage loan to secure a property may result in closing of the loan transaction. In one embodiment, a method includes receiving application information, such that the application information includes at least borrower information, property information, and a first interest rate; receiving home value information, such that the home value information represents an estimated value of the property; receiving a second interest rate; and determining the indication based on the received application information, received home value information, and received second interest rate, such that the indication represents a likelihood that the mortgage loan may result in closing.

Claims

1. A method performed by a computer comprising a data processor for determining an order for performing title searches on one or more properties based on scores, wherein each of the scores indicates whether a mortgage loan application is likely to result in a closing, comprising:

receiving, by the data processor from one or more databases, a first score for a first property;

receiving, by the data processor from one or more databases, a plurality of scores for a plurality of other properties;

comparing, by the data processor, the first score and the plurality of scores to determine an order in which to perform a first title search of the first property relative to a plurality of title searches of the plurality of other properties,

the first title search of the first property being ordered before the plurality of title searches of the plurality of other properties, when the first score indicates a greater likelihood of closing than the plurality of scores.

2. The method of claim 1, wherein determining an order comprises:

prioritizing the first title search before the plurality of title searches based on the first score.

3. The method of claim 1, further including:

receiving a date corresponding to when a mortgage loan application for the first property may be closed with a first interest rate; and

receiving a plurality of dates corresponding to when a mortgage loan application for the plurality of other properties may be closed with a plurality of other interest rates.

4. The method of claim 1, wherein the first score is based on at least a proposed closing date and home value information associated with the first property, and the plurality of scores are based on at least proposed closing dates and home value information associated with the plurality of other properties.

5. The method of claim 4, wherein the first score is further based on at least borrower financial information and employment information of a first potential borrower associated with the first property, and the plurality of scores are further based on at least borrower financial information and employment information of a plurality of potential borrowers associated with the plurality of other properties.

6. The method of claim 1, further including applying a score model, wherein the first score and the plurality of scores are determined based on the score model.

7. The method of claim 6, wherein the score model comprises a plurality of adjustable coefficients.

8. The method of claim 7, further including adjusting a coefficient using a logistic regression technique.

9. A system for determining an order for performing title searches on one or more properties based on scores, wherein each of the scores indicates whether a mortgage loan application is likely to result in a closing, comprising:

means for receiving a first score for a first property;

means for receiving a plurality of scores for a plurality of other properties;

means for comparing the first score and the plurality of scores to determine an order in which to perform a first title search of the first property relative to a plurality of title searches of the plurality of other properties,

the first title search of the first property being ordered before the plurality of title searches of the plurality of other properties, when the first score indicates a greater likelihood of closing than the plurality of scores.

10. The system of claim 9, wherein determining an order comprises:

prioritizing the first title search before the plurality of title searches based on the first score.

11. The system of claim 9, further including:

means for receiving a date corresponding to when a mortgage loan application for the first property may be closed with a first interest rate; and

means for receiving a plurality of dates corresponding to when a mortgage loan application for the plurality of other properties may be closed with a plurality of other interest rates.

12. The system of claim 9, wherein the first score is based on at least a proposed closing date and home value information associated with the first property, and the plurality of scores are based on at least proposed closing dates and home value information associated with the plurality of other properties.

13. The system of claim 12, wherein the first score is further based on at least borrower financial information and employment information of a first potential borrower associated with the first property, and the plurality of scores are further based on at least borrower financial information and employment information of a plurality of potential borrowers associated with the plurality of other properties.

14. The system of claim 9, further including means for applying a score model, wherein the first score and the plurality of scores are determined based on the score model.

15. A computer-executable program tangibly embodied on a non-transitory computer readable medium, said program performing a method for determining an order for performing title searches on one or more properties based on scores, wherein each of the scores indicates whether a mortgage loan application is likely to result in a closing, comprising:

receiving a first score for a first property;

receiving a plurality of scores for a plurality of other properties;

comparing the first score and the plurality of scores to determine an order in which to perform a first title search of the first property relative to a plurality of title searches of the plurality of other properties,

the first title search of the first property being ordered before the plurality of title searches of the plurality of other properties, when the first score indicates a greater likelihood of closing than the plurality of scores.

16. The computer-executable program tangibly embodied on a computer-readable medium of claim 15, wherein determining an order comprises:

prioritizing the first title search before the plurality of title searches based on the first score.

17. The computer-executable program tangibly embodied on a computer-readable medium of claim 15, the program performing the method which further includes:

receiving a date corresponding to when a mortgage loan application for the first property may be closed with a first interest rate; and

receiving a plurality of dates corresponding to when a mortgage loan application for the plurality of other properties may be closed with a plurality of other interest rates.

18. The computer-executable program tangibly embodied on a computer-readable medium of claim 15, wherein the first score is based on at least a proposed closing date and home value information associated with the first property, and the plurality of scores are based on at least proposed closing dates and home value information associated with the plurality of other properties.

19. The computer-executable program tangibly embodied on a computer-readable medium of claim 18, wherein the first score is further based on at least borrower financial information and employment information of a first potential borrower associated with the first property, and the plurality of scores are further based on at least borrower financial information and employment information of a plurality of potential borrowers associated with the plurality of other properties.

20. The computer-executable program tangibly embodied on a computer-readable medium of claim 15, further including means for applying a score model, wherein the first score and the plurality of scores are determined based on the score model.