Method and system for pricing forward commitments for mortgage loans and for buying committed loans

• US 8,671,052 B1
• Filed: 09/14/2012
• Issued: 03/11/2014
• Est. Priority Date: 12/30/2002
• Status: Active Grant

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Palumbo, Donald R., Holmes, Leslie D.
• Primary Examiner(s): Colbert, Ella
• Application Number:
  US13/620,451
• Time in Patent Office: 543 Days
• Field of Search: 705/38, 705/39, 705/45
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• 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 40/08 Insurance

Abstract

A method for managing best efforts forward commitments for loans to be sold by a lender, where each loan has loan level data and the best efforts forward commitments have commitment data includes determining a price for the best efforts commitment based on at least the loan level data and tracking the loan level data for each loan. Upon identifying a change to the loan level data, the loan level data and the commitment data including the price is updated based on the change.

Claims

1. A system for loan acquisition by an investor, the system comprising:

data capture logic configured to receive loan level data for a loan from a lender;

a storage device coupled to the data capture logic for storing at least the loan level data;

commitment logic coupled to the data capture logic, the commitment logic configured to create a forward commitment for the sale of the loan based on a request received from the lender, the forward commitment having commitment data; and

pricing logic coupled to the commitment logic, the pricing logic configured to determine a price for the forward commitment based on at least the loan level data;

wherein the commitment logic is further configured to identify a change made to the loan level data by the lender, and to update the loan level data and the commitment data based on the change, and the pricing logic is further configured to determine an updated price for the forward commitment based at least on the change to the loan level data.

2. A system according to claim 1, wherein the loan data includes a loan identifier, a lender identifier, a loan product type, an interest rate, loan purpose, loan-to-value ratio, loan status, lock expiration date, credit risk information, source, underwriting criteria and a scheduled closing date.

3. A system according to claim 1, wherein the commitment data includes a commitment effective date, a commitment product, a commitment expiration date and a commitment price.

4. A system according to claim 1, wherein upon identifying a change to the loan level data, the commitment logic generates an extension of a commitment period for the best efforts commitment.

5. A system according to claim 1, wherein upon identifying a change to the loan level data, the commitment logic generates a revised commitment product and an associated price change.

6. A system according to claim 1, wherein upon identifying a change to the loan level data, the commitment logic determines whether the change to the loan level data results in an ineligible forward commitment loan product.

7. A system according to claim 1, wherein updating the commitment data includes calculating a commitment expiration date.

8. A system according to claim 1, wherein the commitment price includes a commitment yield value.

9. A system according to claim 1, wherein the loan is a mortgage loan.