System and method for automated process of deal structuring

• US 6,823,319 B1
• Filed: 06/03/2000
• Issued: 11/23/2004
• Est. Priority Date: 07/19/1999
• Status: Expired due to Fees

• Current Assignee: Home American Credit Incorporated
• Original Assignee: Home American Credit Incorporated
• Inventors: Kaiser, William, Riseman, Milton, McNair, John Howard, Polito, Stephen John, Lynch, Joan, DʼUrbano, Roberto E.
• Primary Examiner(s): NGUYEN, CUONG H
• Application Number:
  US09/586,462
• Time in Patent Office: 1,634 Days
• Field of Search: G06/F 1.760, 703/35, 703/38, 703/39
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

An automated deal processing for customers is disclosed, and includes prompting a customer for at least one deal parameter, such as loan amount, prompting the customer for information relating to the customer, such as collateral offered by the customer, accessing in real-time information relating to the credit history of the customer, applying a plurality of origination rules, such as exclusionary rules, pricing rules, risk rules, and edit preference rules, to the at least one deal parameter and the information relating to the customer, applying at least one strategy, such as compensation for risk, repair, or upsell, to the results of the application of the rules, generating at least one deal based on the accessing and applying of the strategy, and presenting the customer with the at least one option. In a preferred embodiment, the automated process of deal structuring is based on the needs and/or the preferences of the customer.

Claims

1. A computerized method of automatically generating, based on the preferences of a potential borrower, and of presenting to the potential borrower via a computerized network, multiple alternative loan offers from a first loan entity for a loan secured by collateral, comprising the steps of:

(a) prompting the potential borrower for at least one loan parameter input to the first loan entity via at least one computer interface;

(b) prompting the potential borrower, via the at least one computer interface, for information relating to the potential borrower;

(c) automatically interfacing with at least one credit reporting service to real-time access and review the credit history of the potential borrower;

(d) applying a plurality of loan origination rules to the at least one loan parameter and the information relating to the potential borrower;

(e) contemporaneously applying a plurality of strategies, contemporaneously with said applying a plurality of loan origination rules, to compensate for a risk in, to perform a repair of, and to perform an upsell on the results of step (d), wherein said contemporaneously applying a plurality of strategies comprises varying at least one of the at least one loan parameter and at least one of the plurality of loan origination rules;

(f) generating at least two proposed loans based on the performance of steps (d) and (e); and

(g) presenting the potential borrower with the at least two proposed loans from the first loan entity via the at least one computer interface,

wherein the at least one loan parameter comprises a loan parameter relating to the amount of the loan; and

wherein the information relating to the potential borrower comprises information relating to the collateral offered by the potential borrower.

2. The method of claim 1, wherein the at least one loan parameter relating to the amount of the loan comprises the gross amount of the loan.

3. The method of claim 1, wherein the at least one loan parameter relating to the amount of the loan comprises the proceeds of the loan, net of all fees.

4. The method of claim 1, wherein the at least one loan parameter relating to the amount of the loan comprises the monthly payment that would be due under the terms of the proposed loan.

5. The method of claim 1, wherein the at least one loan parameter relating to the amount of the loan comprises the total monthly debt service that the potential borrower would be required to pay with respect to the proposed loan and with respect to all of the potential borrower'"'"'s existing debts that would not be discharged with the proceeds of the proposed loan.

6. The method of claim 1, wherein the at least one loan parameter comprises the loan term.

7. The method of claim 1, wherein the at least one loan parameter comprises the number of points payable by the applicant.

8. The method of claim 1, wherein the at least one loan parameter comprises the loan interest rate.

9. The method of claim 1, wherein the at least one loan parameter comprises the loan'"'"'s APR.

10. The method of claim 1, wherein the at least one loan parameter comprises whether the loan interest rate is fixed.

11. The method of claim 1, wherein the at least one loan parameter comprises whether the loan is a balloon loan.

12. The method of claim 1, wherein the at least one loan parameter comprises whether the loan includes a prepayment penalty.

13. The method of claim 1, wherein the information relating to the collateral comprises the lien position of the lender in the collateral.

14. The method of claim 1, wherein the information relating to the collateral comprises the type of collateral offered by the potential borrower.

15. The method of claim 1, wherein the information relating to the collateral comprises information relating to the identity of collateral offered by the potential borrower.

16. The method of claim 1, wherein the information relating to the potential borrower comprises the amount of the potential borrower '"'"'s income.

17. The method of claim 1, wherein the information relating to the potential borrower comprises the amount of the potential borrower'"'"'s debts.

18. The method of claim 1, wherein the information relating to the potential borrower comprises the potential borrower'"'"'s name.

19. The method of claim 1, wherein the information relating to the potential borrower comprises the potential borrower'"'"'s taxpayer identification number.

20. The method of claim 1, wherein the information relating to the potential borrower comprises whether the potential borrower is an individual.

21. The method of claim 1, wherein the information relating to the potential borrower comprises information relating to the potential borrower'"'"'s spouse.

22. The method of claim 1, wherein the information relating to the potential borrower comprises the potential borrower'"'"'s objective in applying for the loan.

23. The method of claim 1, wherein the information relating to the potential borrower comprises information relating to the potential borrower'"'"'s credit history.

24. The method of claim 1, further comprising the step of:

storing the at least one loan parameter received from the potential borrower in response to step (a) and storing the information relating to the potential borrower received from the potential borrower in response to step (b).

25. The method of claim 24, wherein the at least one loan parameter and the information relating to the potential borrower are stored in a database.

26. The method of claim 1, wherein the plurality of loan origination rules is stored in a knowledge base.

27. The method of claim 1, wherein the plurality of loan origination rules are applied to the data received from the potential borrower in response to steps (a) and (b) using an inference engine.

28. The method of claim 1, wherein the plurality of loan origination rules are applied to the data received from the potential borrower in response to steps (a) and (b) using an expert system.

29. The method of claim 1, wherein the potential borrower is prompted in steps (a) and (b) over the Internet.

30. The method of claim 1, wherein the potential borrower is prompted in steps (a) and (b) over the World Wide Web (“

Web”

).

31. The method of claim 1, wherein the potential borrower is prompted in steps (a) and (b) by an employee of the lender who enters the information supplied by the potential borrower in response to steps (a) and (b) into a computer terminal.

32. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the type of applicant.

33. The method of claim 32, wherein the at least one rule relating to the type of potential borrower comprises a rule for rejecting any potential borrower that is not a natural person.

34. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the state of residence of the potential borrower.

35. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the state in which the offered collateral is located.

36. The method of claim 35, wherein the at least one rule relating to the state in which the offered collateral is located comprises a rule for rejecting any potential borrower if the state in which the offered collateral is located is not included in a predetermined set of states.

37. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral.

38. The method of claim 37, wherein the at least one rule relating to the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral comprises a rule for rejecting any potential borrower if the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral exceeds a predetermined value.

39. The method of claim 37, wherein the at least one rule relating to the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral comprises a rule for increasing the interest rate of the loan if the ratio of the proposed amount of debt secured by the offered collateral to the value of the collateral exceeds a predetermined value.

40. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the ratio of the potential borrower'"'"'s income to a predetermined percentage of the total debt that the potential borrower would have if the loan were approved and consummated.

41. The method of claim 40, wherein the at least one rule relating to the ratio of the potential borrower'"'"'s income to a predetermined percentage of the total debt that the applicant would have if the loan were approved and consummated comprises a rule for rejecting an potential borrower if the ratio of the potential borrower'"'"'s income to a predetermined percentage of the total debt that the potential borrower would have if the loan were approved and consummated exceeds a predetermined value.

42. The method of claim 40, wherein the at least one rule relating to the ratio of the potential borrower'"'"'s income to a predetermined percentage of the total debt that the potential borrower would have if the loan were approved and consummated comprises a rule for increasing the interest rate of the loan if the ratio of the potential borrower'"'"'s income to a predetermined percentage of the total debt that the potential borrower would have if the loan were approved and consummated exceeds a predetermined value.

43. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the ratio of the potential borrower'"'"'s income to the total monthly payment relating to all of the potential borrower'"'"'s debts that the potential borrower would have if the loan were approved and consummated.

44. The method of claim 43, wherein the at least one rule relating to the ratio of the potential borrower'"'"'s income to the total monthly payment relating to all of the potential borrower'"'"'s debts that the potential borrower would have if the loan were approved and consummated comprises a rule for rejecting an potential borrower if the ratio of the potential borrower'"'"'s income to the total monthly payment relating to all of the potential borrower'"'"'s debts that the potential borrower would have if the loan were approved and consummated exceeds a predetermined value.

45. The method of claim 43, wherein the at least one rule relating to the ratio of the potential borrower'"'"'s income to the total monthly payment relating to all of the potential borrower'"'"'s debts that the potential borrower would have if the loan were approved and consummated comprises a rule for increasing the interest rate of the loan if the ratio of the potential borrower'"'"'s income to the total monthly payment relating to all of the potential borrower'"'"'s debts that the potential borrower would have if the loan were approved and consummated exceeds a predetermined value.

46. The method of claim 1, wherein the loan origination rules comprise at least one rule relating to the potential borrower'"'"'s credit history.

47. The method of claim 46, wherein the at least one rule relating to the potential borrower'"'"'s credit history comprises at least one rule relating to bankruptcies of the potential borrower.

48. The method of claim 47, wherein the at least one rule relating to bankruptcies of the potential borrower comprises a rule for rejecting the potential borrower if the potential borrower has ever filed for bankruptcy.

49. The method of claim 47, wherein the at least one rule relating to bankruptcies of the potential borrower comprises a rule for rejecting the potential borrower if the potential borrower has been in receivership more recently than a predetermined length of time prior to applying for the loan.

50. The method of claim 47, wherein the at least one rule relating to bankruptcies of the applicant comprises a rule for rejecting the potential borrower if the potential borrower has any undischarged bankruptcies.

51. The method of claim 46, wherein the at least one rule relating to the potential borrower'"'"'s credit history comprise at least one rule relating to the potential borrower'"'"'s payment history.

52. The method of claim 51, wherein the at least one rule relating to the potential borrower'"'"'s payment history comprises a rule for assigning a credit score to each potential borrower based on the potential borrower'"'"'s payment history;

wherein the potential borrower'"'"'s credit score is affected by the number of late payments made by the potential borrower on any of the potential borrower'"'"'s debts; and

wherein the degree to which the potential borrower'"'"'s credit score is affected by each late payment depends on the number of days by which each late payment was late.

53. The method of claim 52, wherein the potential borrower is rejected if the potential borrower'"'"'s credit score is worse than a predetermined credit score.

54. The method of claim 52, wherein the potential borrower is rejected if the potential borrower'"'"'s credit score is worse than a predetermined credit score after the application of compensating factors.

55. The method of claim 1, wherein the at least one strategy comprises generating an alternative proposed loan with a greater loan amount.

56. The method of claim 1, wherein the at least one strategy comprises repairing a rejected loan by altering loan parameters.

57. The method of claim 56, wherein the loan amount is decreased.

58. The method of claim 56, wherein the number of points is increased.

59. The method of claim 56, wherein loan proceeds are used to discharge additional debts.

60. The method of claim 56, wherein loan proceeds are used to discharge senior indebtedness.

61. The method of claim 56, wherein the interest rate is increased.

62. The method of claim 56, wherein the loan term is lengthened.

63. The method of claim 56, wherein the loan is converted to a balloon loan.

64. The method of claim 1, wherein the potential borrower is automatically approved for each proposed loan generated in step (f).

65. The method of claim 1, wherein the potential borrower is automatically approved for each proposed loan generated in step (f), subject to the verification of information submitted by the potential borrower.

66. The method of claim 1, further comprising the step of:

(h) prompting the potential borrower to accept one of the proposed loans.