Method and apparatus for monitoring guaranteed loans and notifying guarantors

• US 7,340,434 B2
• Filed: 02/16/2001
• Issued: 03/04/2008
• Est. Priority Date: 02/16/2001
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Schnall, Peter A.
• Primary Examiner(s): WEISBERGER, RICHARD C
• Application Number:
  US09/783,980
• Publication Number:
  US 20020116322A1
• Time in Patent Office: 2,573 Days
• Field of Search: 705/38
• 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 40/02 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

A method and apparatus are provided for notifying a guarantor associated with a guaranteed loan of events likely to affect their interest in the guaranteed loan. The disclosed method and apparatus provides loan data with information on at least one guaranteed loan wherein the loan data includes information on the terms of the loan. The method and apparatus then monitors changes in the loan data and determines when changes in the loan data corresponding to the at least one guaranteed loan indicates a likelihood that the terms of the loan may not be met. Based on the determination the method and apparatus provides a notification to the guarantor based on the determination that the loan terms may not be met.

Claims

1. A method, executed on a data processing system, of notifying a guarantor of events likely to affect a guaranteed loan, comprising:

providing loan data with information on at least one guaranteed loan wherein the loan data includes information about the loan;

monitoring, by the data processing system, changes in the loan data;

determining when changes in the loan data corresponding to the at least one guaranteed loan indicates a likelihood that the terms of the loan may not be met; and

providing a notification to the guarantor based on the determination that the loan terms may not be met.

2. The method of claim 1 further comprising including in the loan data information on a loan recipient associated with the at least one guaranteed loan.

3. The method of claim 1, after the providing and prior to the monitoring, further comprising determining if loan servicing associated with one of the identified loans includes notifying the guarantor of changes in the loan data.

4. The method of claim 1 wherein the determining step further comprises:

comparing threshold values for measuring loan data with actual values in the loan data; and

identifying the at least one guaranteed loan as having a risk of not meeting the loan terms according to the comparison.

5. The method of claim 4 further comprising including a maximum loan amount in the threshold values and including an actual total loan amount in the actual loan information.

6. The method of claim 4 further comprising including a maximum time period to make a payment in the threshold values and including a time period no payment has been made against the loan in the actual loan information.

7. The method of claim 4 further comprising including a maximum monthly payment in the threshold values and including an actual monthly payment associated with the loan in the actual loan information.

8. The method of claim 4 further comprising including a minimum credit score to obtain the loan in the threshold values and including an actual credit score for the loan recipient in the actual loan information.

9. The method of claim 1 wherein the notifying further comprises transmitting an electronic message to the guarantor including the loan information.

10. The method of claim 1 wherein the notifying further comprises transmitting a written notice to the guarantor including the loan information.

11. The method of claim 1 wherein the notifying further comprises verbally notifying the guarantor using a telephone and including the loan information.

12. An apparatus for notifying a guarantor associated with a guaranteed loan of events likely to affect their interest in the guaranteed loan, comprising:

a processor; and

a memory containing instructions capable of executing on the processor that provide loan data with information on at least one guaranteed loan wherein the loan data includes information on the terms of the loan, monitor changes in the loan data, determine when changes in the loan data corresponding to the at least one guaranteed loan indicates a likelihood that the terms of the loan may not be met, and provide a notification to the guarantor based on the determination that the loan terms may not be met.

13. The apparatus in claim 12 for notifying a guarantor, further comprising instructions for including in the loan data information on a loan recipient associated with the at least one guaranteed loan.

14. The apparatus in claim 12 for notifying a guarantor, further

comprising instructions for determining if loan servicing associated with one of the identified loans includes notifying the guarantor of changes in the loan data.

15. The apparatus in claim 12 for notifying a guarantor further comprising instructions that,

compare threshold values for measuring loan data with actual values in the loan data;

and

identify the at least one guaranteed loan as having a risk of not meeting the loan terms according to the comparison.

16. The apparatus in claim 15 further comprising instructions for including a maximum loan amount in the threshold values and including an actual total loan amount in the actual loan information.

17. The apparatus in claim 15 further comprising instructions for including a maximum time period to make a payment in the threshold values and including a time period no payment has been made against the loan in the actual loan information.

18. The apparatus in claim 15 further comprising instructions for including a maximum monthly payment in the threshold values and including an actual monthly payment associated with the loan in the actual loan information.

19. The apparatus in claim 15 further comprising instructions for including a minimum credit score to obtain the loan in the threshold values and including an actual credit score for the loan recipient in the actual loan information.

20. The apparatus in claim 12 wherein the notifying further comprises instructions for transmitting an electronic message to the guarantor including the loan information.

21. The apparatus in claim 12 wherein the notifying further comprises instructions for transmitting a written notice to the guarantor including the loan information.

22. The apparatus in claim 12 wherein the notifying further comprises instructions for verbally notifying the guarantor using a telephone and including the loan information.

23. An apparatus for notifying a guarantor of events likely to affect a guaranteed loan, comprising:

a providing module configured to provide loan data with information on at least one guaranteed loan wherein the loan data includes information about the loan;

a monitoring module configured to monitor changes in the loan data;

a determination module configured to determine when changes in the loan data corresponding to the at least one guaranteed loan indicates a likelihood that the terms of the loan may not be met; and

a notification module configured to provide a notification to the guarantor based on the determination that the loan terms may not be met.

24. A computer-readable medium including instructions for performing a method, when executed by a processor, for notifying a guarantor of events likely to affect a guaranteed loan, the method comprising:

providing loan data with information on at least one guaranteed loan wherein the loan data includes information about the loan;

monitoring changes in the loan data;

determining when changes in the loan data corresponding to the at least one guaranteed loan indicates a likelihood that the terms of the loan may not be met; and

providing a notification to the guarantor based on the determination that the loan terms may not be met.

25. A method, executed on a data processing system, of notifying a guarantor of events likely to affect a guaranteed loan, comprising:

providing loan data with information on at least one guaranteed loan wherein the loan data includes information about the loan;

monitoring changes in the loan data;

determining when changes in the loan data corresponding to the at least one guaranteed loan indicates a possibility that a default on the loan may occur; and

providing a notification to the guarantor based on the determination that a default on the loan may occur.

26. The method of claim 25, wherein the information about the loan comprises the terms of the loan.