Loan compliance auditing system and method

• US 7,412,417 B1
• Filed: 03/03/2000
• Issued: 08/12/2008
• Est. Priority Date: 03/03/2000
• Status: Expired due to Term

• Current Assignee: ICE Mortgage Technology, Inc. (Intercontinental Exchange, Inc.)
• Original Assignee: Infoglide Software Corp. (Fair Isaac Corporation)
• Inventors: Tuttle, Frank D.
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US09/518,837
• Time in Patent Office: 3,084 Days
• Field of Search: 705 10- 44, 707100-104
• US Class Current: 705/38
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The present invention comprises a system and method for auditing loan compliance with state and federal laws and regulations. The invention comprises allowing a user to display and enter loan audit compliance data and to interactively build a set of loan compliance rules. The loan compliance rules are built for all loan licenses available within a locality. The applicable licenses are then associated with a loan originator to form a list of applicable licenses for the loan originator. In response to a loan audit request, the system identifies the loan type and the loan originator, retrieves the applicable license for the loan type and the loan originator and then retrieves the loan compliance rules associated with the applicable licenses. The system compares the loan compliance rules to the loan data to determine loan audit compliance.

Claims

1. A computer-implemented method for auditing loan compliance with government loan lending and licensing requirements, comprising the computer-implemented steps of:

a. allowing a user to display, enter and edit loan audit compliance data comprising compliance base rule data elements capable of being entered into mathematical equations, and storing the loan audit data in a loan data database in a computer system;

b. allowing a user to interactively build loan compliance rules comprising mathematical equations using compliance base rule variables and algebraic operands that are derived from and represent said government loan lending and licensing requirements, and storing the loan compliance rules in a loan compliance rules database in the computer system;

c. responding to a loan audit request including;

i. retrieving the loan compliance rules from the loan compliance rules database;

ii. retrieving the loan audit data from the loan data database;

iii. applying the loan compliance rules to the loan audit data by inserting the compliance base rule data elements from the loan audit data into the compliance base rule variables of the compliance rules for determining a loan audit compliance result; and

d. notifying said user of the determined loan audit compliance result.

2. A computer-implemented method for auditing loan compliance with government loan lending and licensing requirements, comprising the computer-implemented steps of:

a. allowing a user to display, enter and edit loan audit compliance data including compliance base rule data elements capable of being entered into mathematical equations, comprising the steps of;

i. receiving and displaying loan audit data on a user interface of a computer system; and

ii. storing the loan audit data in a loan data database in the computer system;

b. allowing said user to interactively build loan compliance rules including mathematical equations using compliance base rule variables and algebraic operands that are derived from and represent said government loan lending and licensing requirements on said user interface of the computer system, comprising the steps of;

i. using applicable licenses for a geographic boundary, building loan compliance rules for all applicable licenses available within the geographic boundary and storing the loan compliance rules in a loan compliance rules database in the computer system; and

ii. associating licenses from the applicable licenses with a loan originator to form a set of loan originator applicable licenses and storing the list of loan originator licenses in the loan compliance rules database in the computer system;

c. responding to a loan audit request received from said user on a user interface of the computer system, comprising the steps of;

i. identifying a loan type and loan originator;

ii. retrieving the loan originator licenses for the loan type and loan originator from the loan compliance rules database;

iii. retrieving the loan compliance rules associated with the loan originator licenses from the loan compliance rules database;

iv. retrieving the loan audit data from the loan data database;

v. applying the loan compliance rules to the loan audit data by inserting the compliance base rule data elements from the loan audit data into the compliance base rule variables of the compliance rules for determining a loan audit compliance result; and

d. notifying said user of the determined loan audit compliance result.

3. The method of claim 2 further comprising building rules for all applicable licenses available within the geographic boundary using compliance base rule variables and rule building instructions and storing the loan compliance rules in a rule library database in the computer system.

4. The method of claim 3 wherein building rules for all licenses available within the geographic boundary using the compliance base rule variables and rule building instructions further comprises:

allowing the user to add a new license to the applicable licenses available; and

allowing said user to build new rules for the new license.

5. The method of claim 2 further comprising storing the loan compliance rules in said rule library database in the computer system.

6. The method of claim 5 further comprising, if a rule exists in the rule library database for a license, allowing the user to review the rule.

7. The method of claim 5 further comprising, if a rule exists in the rule library database for a license, allowing the user to change the rule.

8. The method of claim 5 further comprising allowing the user to modify the loan compliance rules in the rule library database.

9. The method of claim 3 wherein the compliance base rule variables represent data elements in a loan file in the loan data database.

10. The method of claim 3 wherein said rule building instructions comprise allowing the user to build rules by specifying equations using base rule variables.

11. The method of claim 10 wherein the rule building instructions comprise controlling the rule building process to eliminate rule errors.

12. The method of claim 2 further comprising associating the loan compliance rules with a license to form a set of assigned compliance rules.

13. The method of claim 2 wherein the geographic boundary is a state.

14. The method of claim 5 wherein the user displays and enters loan data using said user interface embodied in a computer processor that communicates with the rule library database via a communications network.

15. The method of claim 14 wherein the communications network is a global communications network.

16. The method of claim 12 further comprising allowing said user to identify and store applicable exemptions to the government license requirements in the assigned compliance rules.

17. The method of claim 13 wherein the government loan originator requirements are state loan requirements.

18. The method of claim 13 wherein the government loan originator requirements are federal loan requirements.

19. The method of claim 13 wherein the licensing requirements are state licensing requirements.

20. The method of claim 13 wherein the licensing requirements are federal licensing requirements.

21. The method of claim 14 wherein the communications network is selected from the group consisting of a satellite communication network, a telephone communication network, a microwave transmission network, a radio communication network and a wireless telephone communication network.

23. A software program embodied on a computer-readable medium to be executed by a processor or a computer incorporating the method as recited in claim 2.

22. A computer implemented method for auditing loan compliance with government and loan lending requirements, comprising the computer-implemented steps of:

a. electronically transferring loan data including compliance base rule data elements capable of being entered into mathematical equations from a user interface embodied in a computer processor to a loan audit server computer over a communications network;

b. at a user interface computer, allowing a user to interactively build loan compliance rules using compliance based rule variables and rule building instructions including mathematical equations using compliance base rule variables and algebraic operands that are derived from and represent the government loan lending and licensing requirements, comprising;

i. using licenses applicable to a state, building rules for all applicable licenses available within the state; and

ii. associating the applicable licenses with a loan originator to form a list of loan originator applicable licenses and storing the loan originator applicable licenses;

c. storing the loan compliance rules in a database connected to the loan audit server computer;

d. in response to a loan audit request;

i. identifying a loan type and the loan originator;

ii. retrieving the loan audit data and the applicable licenses for the loan type and the loan originator by the loan server;

iii. retrieving the loan compliance rules associated with the applicable licenses from the stored rules in the database by the loan server;

iv. applying the loan compliance rules to loan data by inserting the compliance base rule data elements from the loan audit data and the applicable licenses into the compliance base rule variables of the compliance rules for determining loan audit compliance results by the loan server; and

e. electronically transferring the loan audit compliance results from the loan server to the user over a communications network.

24. A software program embodied on a computer-readable medium to be executed by a processor or a computer incorporating the method as recited in claim 22.

25. A system for auditing loan compliance with government and loan lending requirements, comprising:

a. a user interface for displaying, entering and editing loan audit compliance data comprising compliance base rule data elements capable of being entered into mathematical equations; and

b. a loan audit server communicating with the user interface that;

i. allows a user to interactively build a set of loan compliance rules using rule-building instructions, the loan compliance rules comprising mathematical equations using compliance base rule variables and algebraic operands that are derived from and represent said government loan lending and licensing requirements;

ii. stores the loan compliance rules;

iii. in response to a loan audit request;

(i) identifies a loan type;

(ii) determines the loan compliance rules that apply to the loan type;

(iii) applies the loan compliance rules to loan audit compliance data associated with the loan audit request to determine loan audit results.

26. The system of claim 25 wherein the loan audit results are displayed to the user via the user interface.

27. The system of claim 25 wherein the user interface is embodied in a computer processor that communicates with the loan audit server via a communications network.

28. The system of claim 25 wherein the loan audit server comprises a global communications network (“

web”

) data server capable of transmitting and receiving loan data to and from the user via a global communications network.

29. The system of claim 27 wherein the communications network is the Internet.

30. The system of claim 25 further comprising storing the loan audit results in an audit compliance report.

31. The system of claim 25 wherein the loan compliance rules are built by the user using the user interface.

32. The system of claim 25 wherein interactively building a set of loan compliance rules comprises:

using applicable licenses for a state, the user builds rules for all licenses available within the state using the compliance base rule variable and rule building instructions and stores the rules in a rule library; and

using the applicable licenses, the user associates the applicable licenses with a loan originator to form the loan originator applicable licenses.

33. The system of claim 32 wherein in comparing the loan compliance rules with the loan data, the loan audit server:

identifies a loan type and loan originator;

retrieves the applicable licenses for the loan type and the loan originator;

retrieves the loan compliance rules associated with the applicable licenses from the stored rules in the rule library;

compares the loan compliance rules to the loan data; and

compiles the loan audit results.

34. The system of claim 27 wherein the communications network comprises a satellite communication network.

35. The system of claim 27 wherein the communications network comprises a telephone communication network.

36. The system of claim 27 wherein the communications network comprises a microwave transmission network.

37. The system of claim 27 wherein the communications network comprises a radio communication network.

38. The system of claim 27 wherein the communications network comprises a wireless telephone communication network.

39. The system of claim 25 further comprising a generating a hardcopy of the loan audit results.

40. The system of claim 25 further comprising storing the loan audit results on media selected from the group consisting of a hardcopy report, a tape, a film and a CD-ROM.

41. The system of claim 25 wherein loan compliance rules comprise:

compliance based rule variables;

rule building instructions;

a compliance rules data library;

assigned compliance rules;

a list of government licenses for loan originators; and

data application rules.

42. The system of claim 25 wherein the user interface communicates with a web browser for transmitting and receiving the loan data and the loan audit results.

43. A computer-implemented method for auditing loan compliance with government loan lending and licensing requirements, comprising the computer-implemented steps of:

receiving loan application data including compliance base rule data elements capable of being entered into mathematical equations;

receiving loan compliance rules comprising mathematical equations using compliance base rule variables and algebraic operands that are derived from and represent said government loan lending and licensing requirements;

applying a selected set of the loan compliance rules to the loan application data by inserting the compliance base rule data elements from the loan application data into the compliance base rule variables of the compliance rules for determining a loan audit compliance result; and

notifying a user of the determined loan audit compliance result.

44. The computer-implemented method of claim 43, further comprising the computer-implemented steps of:

receiving rule building instructions and data from said user;

building the loan compliance rules using the base rule variables assembled into the mathematical equations using algebraic operands that are derived from and represent the government loan lending and licensing requirements; and

storing the loan compliance rules in a rules library.

45. The computer-implemented method of claim 43, wherein the step of applying a selected set of the loan compliance rules is determined by designating specific data application rules for a particular loan application data file.

46. A software program embodied on a computer-readable medium to be executed by a processor or a computer incorporating the method as recited in claim 43.