System and methods for determining the likelihood that a loan closes

• US 8,548,905 B1
• Filed: 09/14/2012
• Issued: 10/01/2013
• Est. Priority Date: 11/04/2003
• Status: Expired due to Term

• 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:
  US13/616,769
• Time in Patent Office: 382 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 computer-implemented method comprising:

identifying, using a computer processor, data corresponding to a mortgage loan application, comprising applicant data, an identification of a property, and a first interest rate;

identifying, using the computer processor, value data corresponding to the property;

identifying a second interest rate; and

determining, based on the data corresponding to the mortgage loan application, the value data, and the second interest rate, a likelihood that the mortgage loan application will close.

2. The computer-implemented method of claim 1, wherein the first interest rate is a locked interest rate.

3. The computer-implemented method of claim 1, wherein the second interest rate is a current interest rate.

4. The computer-implemented method of claim 1, wherein the data corresponding to a mortgage loan application further comprises a closing date and a number of points charged for the loan.

5. The computer-implemented method of claim 1, wherein the value data corresponding to the property comprises an average or median property value for a geographical region that includes the property.

6. The computer-implemented method of claim 1, wherein determining a likelihood that the mortgage loan application will close comprises determining a likelihood that the mortgage loan application will close before a certain date in the future.

7. The computer-implemented method of claim 1, wherein determining a likelihood that the mortgage loan application will close comprises applying a fallout score model.

8. The computer-implemented method of claim 7, further comprising determining a product of a coefficient of the fallout score model and a corresponding variable in the fallout score model.

9. The computer-implemented method of claim 7, further comprising using a logistic regression analysis to determine a coefficient for the fallout score model.

10. The computer-implemented method of claim 7, further comprising adjusting a coefficient for the fallout score model by scaling the coefficient into a predefined range.

11. A system comprising:

a processor; and

a memory having instructions, that when executed by the processor, cause the processor to perform operations including;

identifying, using the processor, data corresponding to a mortgage loan application, comprising applicant data, an identification of a property, and a first interest rate;

identifying, using the processor, value data corresponding to the property;

identifying a second interest rate; and

determining, based on the data corresponding to the mortgage loan application, the value data, and the second interest rate, a likelihood that the mortgage loan application will close.

12. The system of claim 11, wherein the first interest rate is a locked interest rate.

13. The system of claim 11, wherein the second interest rate is a current interest rate.

14. The system of claim 11, wherein the data corresponding to a mortgage loan application further comprises a closing date and a number of points charged for the loan.

15. The system of claim 11, wherein the value data corresponding to the property comprises an average or median property value for a geographical region that includes the property.

16. The system of claim 11, wherein determining a likelihood that the mortgage loan application will close comprises determining a likelihood that the mortgage loan application will close before a certain date in the future.

17. The system of claim 11, wherein determining a likelihood that the mortgage loan application will close comprises applying a fallout score model.

18. The system of claim 17, further comprising determining a product of a coefficient of the fallout score model and a corresponding variable in the fallout score model.

19. The system of claim 17, further comprising using a logistic regression analysis to determine a coefficient for the fallout score model.

20. The system of claim 17, further comprising adjusting a coefficient for the fallout score model by scaling the coefficient into a predefined range.