System and method for automated process of deal structuring

• US 6,901,384 B2
• Filed: 01/07/2002
• Issued: 05/31/2005
• Est. Priority Date: 06/03/2000
• Status: Expired due to Fees

• Current Assignee: Home American Credit Incorporated
• Original Assignee: Home American Credit Incorporated
• Inventors: Kaiser, William, Riseman, Milton, D'Urbano, Roberto E., McNair, John Howard, Polito, Stephen John, Lynch, Joan
• Primary Examiner(s): NGUYEN, CUONG H
• Application Number:
  US10/040,938
• Publication Number:
  US 20030033242A1
• Time in Patent Office: 1,240 Days
• Field of Search: G06/F01.7/60, 705/38, 705 35- 36
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

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 income and collateral offered by the customer, optionally 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 which may include a customer-preferred loan, a piggyback loan, a pre-qualification, or reduced term loan option,

Claims

1. A computerized method of automatically generating at least one piggyback loan option for a borrower, utilizing at least one loan parameter and collateral information, wherein a total amount for the at least one piggyback loan is secured by the collateral, comprising:

applying a plurality of deal origination rules to the at least one loan parameter and the collateral information;

generating a primary loan having a primary loan amount and a first secured position,

calculating a difference amount between the total amount and the primary loan amount;

generating a complementary secondary loan having a second secured position, wherein an amount of the secondary loan is substantially equal to the difference amount;

verifying that the primary loan and the complementary secondary loan comply with the deal origination rules;

generating the piggyback loan, wherein the piggyback loan is a combination of the primary loan and the complementary second loan; and

presenting to the borrower the at least one piggyback loan for the total amount.

2. The method of claim 1 wherein the primary loan amount is based on a percentage of a full value of the collateral.

3. The method of claim 2, wherein the percentage of the full value of the collateral is 80% or less.

4. The method of claim 1, wherein said verifying step comprises calculating a debt to income ratio of the piggyback loan, and comparing the debt to income ratio to at least one of the plurality of deal origination rules.

5. The method of claim 1, wherein said verifying step comprises calculating a loan to value ratio of the piggyback loan and comparing the loan to value ratio to at least one of the plurality of deal origination rules.

6. The method of claim 1, wherein the first secured position comprises taking a first lien on real estate.

7. The method of claim 1, wherein said step of generating an option for a complementary secondary loan option further comprises selecting an investor product.

8. The method of claim 1, wherein the at least one loan parameter comprises an amount of desired cash out.

9. The method of claim 1, wherein the at least one loan parameter comprises an amount of at least one debt.

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

11. The method of claim 1, wherein the at least one loan parameter comprises loan origination points.

12. The method of claim 1, wherein the at least one loan parameter comprises the total amount.

13. The method of claim 1, further comprising:

varying at least one characteristic of the at least one piggyback loan to generate at least one additional primary loan and corresponding complementary secondary loan; and

presenting to the borrower the at least one additional primary and corresponding complementary secondary loans.

14. The method of claim 13, wherein the at least one characteristic is one or more selected from the group consisting of an amount of desired cash out, an amount of least one debt, a loan term length, loan origination points, and a loan amount.

15. The method of claim 1, wherein the step of generating an option for a primary loan comprises selecting a loan product according to at least one selected from the group consisting of a suggested debt to income ratio for that loan product and a suggested loan to value ratio for that loan product.

16. A computerized method of generating a plurality of piggyback loan alternatives, wherein each alternative is secured by collateral, based on at least one preference of a customer, comprising the steps of:

receiving from the customer at least a full loan amount;

receiving from the customer of information relating to a full value of the collateral;

applying a plurality of deal origination rules to the at least one preference and the information relating to the collateral;

generating a primary loan, wherein a value of the primary loan is a percentage of the full value of the collateral;

calculating a difference value between the full loan amount and the value of the primary loan;

generating a complementary secondary loan having a second secured position, wherein a secondary loan value of the secondary loan is substantially equal to the difference value;

verifying that the primary loan option and complementary secondary loan option comply with the plurality of deal origination rules;

varying the primary loan value to generate an additional primary loan;

generating an additional complementary secondary loan;

iterating said varying the primary loan value to generate an additional primary loan and said generating an additional complementary secondary loan to thereby generate a plurality of primary and complementary secondary loans; and

presenting the customer with the plurality of primary and complementary secondary loans.

17. The method of claim 16, wherein the percentage of the full value of the collateral is 80% or less.

18. The method of claim 16, wherein said verifying step comprises calculating a debt to income ratio of at least one of the plurality of primary loan options and at least one of the complementary secondary loan options and comparing the debt to income ratio to at least one deal origination rule.

19. The method of claim 16, wherein a first secured position of the primary loan comprises taking a first lien on real estate.

20. The method of claim 16, wherein said generating a complementary secondary loan option further comprises selecting an investor product.

21. The method of claim 16, wherein the at least one preference further comprises a desired cash out amount.

22. The method of claim 21, wherein said iterating step comprises varying a desired cash out amount.

23. The method of claim 16, wherein the at least one preference further comprises a value of at least one debt.

24. The method of claim 23, wherein said iterating step comprises paying off at least one of the at least one debt.

25. The method of claim 16, wherein said verifying step comprises calculating a loan to value ratio resulting from the primary loan option and the complementary secondary loan option, and comparing the loan to value ratio to at least one of the deal origination rules.

26. The method of claim 16, further comprising inputting a modification to the at least one preference, wherein the at least one modified preference includes at least one of a term length, loan origination points, and a loan amount, to generate an additional primary and complementary secondary loan option.

27. A computerized method of automatically generating a reduced-term loan for a borrower, along with at least one primary loan, utilizing at least one loan parameter and information relating to an outstanding loan debt of the borrower, wherein the reduced term loan and the primary loan are secured by collateral information, comprising the steps of:

applying a plurality of deal origination rules to the at least one loan parameter and the collateral information;

generating the at least one primary loan;

generating, for the reduced-term loan, a value of lendable equity in the collateral information and a reduced-term loan term duration, in accordance with a new preferred loan amount and a current rate of interest, wherein the reduced-term loan pays off at least a portion of the outstanding loan debt; and

presenting the borrower with the at least one primary loan and the reduced-term loan, wherein said presenting includes a comparison of savings if the reduced term loan is accepted by the borrower.

28. The method of claim 27, wherein the reduced term loan duration is a fixed-length term selectable by the borrower.

29. A computerized method of automatically generating a reduced-term loan and at least two proposed primary loans, secured by collateral, based on at least one preference of a potential borrower, comprising the steps of:

receiving from the potential borrower the at least one preference comprising an existing monthly payment amount for at least one outstanding loan debt;

receiving from the potential borrower personal information relating to the potential borrower;

real time accessing a credit history without negative impact to the credit history of the potential borrower in accordance with the personal information;

receiving from the potential borrower information relating to the collateral;

applying a plurality of loan origination rules to the at least one preference and the personal information;

applying at least one loan generation strategy to at least one results of said step of applying a plurality of loan origination rules;

generating the at least two proposed primary loans in accordance with said step of applying at least one loan generation strategy;

generating, for the reduced-term loan, a value of lendable equity in the collateral and a reduced-term loan term duration, in accordance with a new preferred loan amount and a current rate of interest, wherein the reduced-term loan pays off at least a portion of the at least one outstanding loan debt; and

presenting the potential borrower with the at least two proposed primary loans and a comparison of the reduced-term loan with the existing monthly payment amount.

30. The method of claim 29, wherein the comparison comprises a savings available to the potential borrower.

31. The method of claim 29, wherein the reduced term loan duration is a fixed-length term selectable by the potential borrower.

32. A computerized method of verifying the viability of at least one loan alternative of an automated deal structuring system, offered to and selected by a potential borrower, based on the financial verification information of a potential borrower received from the potential borrower in response to a stipulation of the at least one loan alternative, comprising the steps of:

receiving the verification information;

entering the verification information into the deal structuring system;

attempting to regenerate the at least one loan alternative in accordance with the verification information by;

applying automated underwriting rules to the regenerated at least one loan alternative;

verifying that the regenerated at least one loan alternative is viable in accordance to with the verification information;

scheduling a loan closing for the regenerated at least one loan alternative if said applying step and said verifying step confirm viability of the at least one loan alternative; and

providing at least one secondary loan alternative for the potential borrower, via the automated deal structuring system, if said applying step and said verifying step do not confirm the viability.

33. The method of claim 32, wherein the verification information comprises documentation of income of the potential borrower.

34. The method of claim 32, wherein the verification information comprises an appraisal of real estate value.