Customized consumer loan product search system and method

• US 8,341,073 B1
• Filed: 05/23/2011
• Issued: 12/25/2012
• Est. Priority Date: 03/27/2006
• Status: Expired due to Fees

• Current Assignee: Loaninsights LLC
• Original Assignee: Loaninsights LLC
• Inventors: Bramlage, William, Strike, Jonathan
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US13/113,970
• Time in Patent Office: 582 Days
• Field of Search: 705 10- 44
• US Class Current: 705/38
• 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 40/12 Accounting

Abstract

A method and system for searching from a plurality of available, relevant loan products with associated pricing, wherein the searching is based on input consumer criteria, includes creating and updating a centralized and searchable database of lenders'"'"' underwriting and pricing guidelines that can be utilized by a consumer and matching and optimization of loan products or pricing for a consumer wherein the consumer'"'"'s qualifications and needs are matched to the best available loan products with associated rate pricing.

Claims

1. In a computer automated system comprising a processing unit and a memory element having instructions encoded thereon, a method for searching from a plurality of available loan products with associated interest rate pricing, wherein the searching is based on input consumer criteria, the method comprising:

creating, organizing, and updating a centralized and searchable lender database or databases comprised of a plurality of lending institutions'"'"' underwriting guidelines and interest rate pricing for loan products, wherein the steps of creating, organizing and updating further comprises;

aggregating baseline criteria and base rate or yield spread rate matrices obtained from each lender, wherein said aggregation from a plurality of lending institution'"'"'s underwriting guidelines and interest rate pricing matrices forms the searchable and centralized database or databases for use in matching and optimizing loan products and associated interest rate pricing for a consumer;

matching and optimizing loan products or pricing for a consumer based on the input consumer criteria.

2. The method of claim 1 wherein the first subset database and all subsequent lender subset databases are comprised of a minimum compliance level of data wherein the minimum compliance level of data comprises an aggregation of baseline criteria required for determining loan eligibility and interest rate pricing that is uniformly collected from each individual lender and is then modified as necessary, organized, and stored in conjunction with like criteria from all other lending institutions.

3. The method of claim 2 wherein the minimum compliance level of data comprises the following lending institution underwriting guidelines and interest rate pricing:

loan characteristics;

base rate pricing; and

yield spread rate pricing.

4. The method of claim 1 further comprising automatically receiving and updating data by a plurality of lending institutions, the first lender subset database and one or more subsequent lender subset databases comprised in a centralized web server.

5. The method of claim 1 further comprising manually receiving and updating the first lender subset database and one or more subsequent lender subset databases, which comprises contacting a plurality of lending institutions.

6. The method of claim 1 further comprising the step of allowing an additional lending institution to contribute that lending institution'"'"'s subset database of underwriting and pricing guidelines to a loan broker lender database.

7. The method of claim 6 wherein an additional lender subset database is received manually by contact with the additional lending institution.

8. The method of claim 6 wherein the additional lender subset database is received automatically by the additional lending institution updating a centralized web server.

9. The method of claim 1 wherein a first lender subset database and all subsequent lender subset databases are organized into a numerical loan broker database matrix functioning as limits with resulting data comprising the aggregated baseline criteria obtained from each subset database required for determining loan eligibility and pricing.

10. The method of claim 1 wherein matching and optimizing for the consumer further comprises:

performing one or more calculations using the consumer information to obtain credit related values; and

creating a consumer profile comprising consumer information and the results of credit related value calculations.

11. The method of claim 10, wherein consumer information comprises loan and property information, income information, or credit information.

12. The method of claim 11, wherein loan and property information comprises loan purpose or use of proceeds, property value or purchase price, down payment, loan amount or loan amounts, cash-out amount, property location, property type, use of home or occupancy type, loan type or term, length of loan, interest only or amortizing loan, length of property ownership, property tax information, insurance information, homeowner'"'"'s association fees, total number of properties owned, acreage, or square footage.

13. The method of claim 11, wherein income information comprises receiving and storing type of income documentation, income, income type, monthly or annual debts or expenses, value of liquid assets, property taxes, insurance cost, or employment or self-employment information.

14. The method of claim 11, wherein credit information comprises credit score, scores, or ranges of scores, credit self-ranking, tradelines, payment history, bankruptcy history, consumer credit counseling history, or foreclosure history or notice of default history.

15. The method of claim 11 further comprises automatically receiving credit information by a centralized web server via the Internet.

16. The method of claim 10, wherein the credit related value calculations performed by an additional computer or device comprise loan-to-value ratio (LTV), combined loan-to-value ratio (CLTV), front debt-to-income ratio (DTI), back debt-to-income (DTI), disposable income, principal, interest, property taxes, PITI (principal, interest, taxes, and insurance) reserves, number of late payments, time since bankruptcy, time since consumer credit counseling, or time since foreclosure or notice of default.

17. The method of claim 10 further comprising the step of encrypting consumer identification and the consumer information.

18. The method of claim 1 further comprising defining by each lending institution, their own baseline criteria, and wherein aggregating comprises aggregating the baseline criteria from each institution, wherein the baseline criteria is comprised in the minimum compliance level of data, which is defined by each of said lending institutions, such that each lending institution may have different criteria for defining said minimum compliance level of data.

19. The method of claim 18 wherein said baseline criteria comprised in the minimum compliance level of data is required for determining loan eligibility and pricing, uniformly collected from each individual lender, and then modified, organized, and stored in conjunction with like criteria collected from each other lending institution.

20. The method of claim 19 wherein the said baseline criteria further comprises at least one of credit score, loan amount, down payment, loan-to-value ratio (LTV), combined loan-to-value ratio (CLTV), front debt-to-income (DTI), back debt-to-income (DTI), payment history, bankruptcy history, foreclosure history/information, use of proceeds, property type, occupancy type, property location, and documentation type.

21. The method of claim 20 wherein the said baseline criteria further comprises at least one of cash-out amount, PITI reserve requirements, tradelines, notice of default history/information, interest only versus fully amortizing, product terms, lien position, and employment type.

22. A computer automated system for searching from a plurality of available loan products with associated interest rate pricing, based on input consumer criteria, the system comprising a processing unit and a memory element having instructions encoded thereon, wherein the instructions cause the computer automated system to:

create, organize, and update a centralized and searchable lender database or databases comprised of a plurality of lending institutions'"'"' underwriting guidelines and interest rate pricing for loan products;

aggregate baseline criteria and the base rate or yield spread rate matrices obtained from each subset database, wherein said aggregation from a plurality of lending institution'"'"'s underwriting guidelines and interest rate pricing forms the searchable and centralized database or databases for use in matching and optimizing loan products and associated interest rate pricing for a consumer; and

match and optimize loan products or pricing for a consumer based on the input consumer criteria.

23. The computer automated system of claim 22 wherein the first and subsequent lender databases are comprised in at least one of an automatically and manually updatable centralized web server.

24. The computer automated system of claim 22 wherein the first lender subset database and all subsequent lender subset databases are organized into a numerical loan broker database matrix functioning as limits with resulting data comprising the aggregated baseline criteria obtained from each subset database required for determining loan eligibility and pricing.

25. The computer automated system of claim 22 wherein the instructions encoded thereon that cause the system to match and optimize loan products or pricing for the consumer, and further cause the system to:

perform one or more calculations using the consumer information to obtain credit related values; and

create a consumer profile comprising consumer information and the results of credit related value calculations.

26. The computer automated system of claim 25, wherein the instructions encoded thereon further cause the system to automatically receive credit information by a centralized web server.

27. The computer automated system of claim 25 wherein the instructions encoded thereon further cause the system to encrypt consumer identification and the consumer information.