System and method for creating and tracking agreements for selling loans to a secondary market purchaser

• US 7,461,020 B2
• Filed: 12/17/2003
• Issued: 12/02/2008
• Est. Priority Date: 12/30/2002
• Status: Expired due to Term

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Singh, Navdeep, Simonds, John A. Jr., Mathewson, Mark D., Kemper, John L.
• Primary Examiner(s): Subramanian; Narayanswamy
• Application Number:
  US10/738,838
• Publication Number:
  US 20040215555A1
• Time in Patent Office: 1,812 Days
• Field of Search: 705 35- 40
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system for creating an agreement and tracking compliance with terms of an agreement between a seller and a purchaser for the sale of loans includes deal management logic and a rules processor. The deal management logic is configured to store and track the terms of the agreement using a set of business rules. The rules processor comprises the set of business rules and is configured to facilitate adding or editing at least one business rule based on at least one term of the agreement. In addition, the rules processor is configured to access the business rules to assess compliance with the terms of the agreement during delivery of the loans. The system may also include pricing logic that is configured to create a set of price data based on the at least one term of the agreement.

Claims

1. A computer-implemented apparatus for creating an agreement between a seller and a purchaser for the sale of mortgage loans and tracking compliance with terms of the agreement, the apparatus comprising:

a first user interface for receiving the terms of the agreement;

deal management logic configured to generate and store the agreement between the seller and the purchaser for the sale of mortgage loans, the agreement being generated based on information regarding the terms of the agreement provided by a user, the agreement terms including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans; and

a rules processor, coupled to the deal management logic, the rules processor configured to permit adding or editing of at least one business rule based on the at least one variance and configured to access the business rule during delivery of the mortgage loans to the purchaser to generate an output indicating whether the mortgage loan is acceptable for purchase by the purchaser under the terms of the agreement based on the variance;

wherein the rules processor is further configured to provide the output to the seller via a second user interface.

2. An apparatus according to claim 1, further comprising pricing logic, coupled to the deal management logic, the pricing logic configured to create a set of price data based on the at least one variance.

3. An apparatus according to claim 2, wherein the pricing logic is further configured to determine selling prices for the mortgage loans.

4. An apparatus according to claim 1, wherein the rules processor further includes editing logic configured to add or edit at least one business rule, and wherein the rules processor exchanges data with the deal management logic regarding at least one term of the mortgage loan associated with the at least one business rule.

5. An apparatus according to claim 1, wherein the rules processor is further configured to process the set of loan data by applying the set of business rules to the set of loan data.

6. An apparatus according to claim 5, wherein the set of business rules is applied to the set of loan data during a delivery process.

7. An apparatus according to claim 1, further comprising a user interface permitting a user to access the rules processor to add or edit at least one business rule based on at least one term of the agreement.

8. A computer-implemented apparatus for creating an agreement between a seller and a purchaser for the sale of loans and tracking compliance with terms of the agreement, the apparatus comprising:

a user interface, the user interface being configured to receive information from a user regarding the terms of the agreement between the seller and the purchaser for the sale of mortgage loans, the agreement terms including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans, and configured to permit a user to create or modify variances that reflect the terms of the agreement;

deal management logic coupled to the user interface, the deal management logic being configured to generate and store the agreement between the seller and the purchaser for the sale of mortgage loans, the agreement being generated based on the information regarding the terms of the agreement received by the user interface, the agreement terms including at least one variance from the set of business rules; and

a rules processor coupled to the user interface and to the deal management logic, the rules processor configured to permit. adding or editing of at least one business rule based on the information regarding the terms of the agreement received by the user interface including the at least one variance, and the rules processor being configured to access the business rule during delivery of the mortgage loans to the purchaser to generate an output indicating whether the mortgage loan is acceptable for purchase by the purchaser under the terms of the agreement based on the variance;

wherein the rules processor is configured to provide the output to the seller via a second user interface.

9. A computer-implemented apparatus for creating an agreement between a loan originator and a secondary mortgage market purchaser for the sale of mortgage loans and tracking compliance with terms of the agreement, the apparatus comprising:

a user interface configured to receive information from a user regarding the terms of the agreement between the loan originator and the secondary mortgage market purchaser for the sale of mortgage loans, the agreement terms including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the secondary mortgage market purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the secondary mortgage market purchaser to determine whether the mortgage loan is acceptable for purchase by the secondary mortgage market purchaser based on whether the mortgage loan is one of the defined types of mortgage loans, and configured to permit a user to create or modify variances that reflect the terms of the agreement;

deal management logic coupled to the user interface and configured to generate and store the agreement between the loan originator and the secondary mortgage market purchaser for the sale of mortgage loans, the agreement being generated based on the information regarding the terms of the agreement provided by the user, the agreement terms including at least one variance from the set of business rules; and

a rules processor, coupled to the user interface and the deal management logic, the rules processor configured to permit adding or editing of at least one business rule based on the at least one variance and configured to access the business rule during delivery of the mortgage loans to the secondary mortgage market purchaser to generate an output indicating whether the mortgage loan is acceptable for purchase by the secondary mortgage market purchaser under the terms of the agreement based on the variance;

wherein the user interface is further configured to permit a user to access the rules processor to add or edit at least one business rule based on at least one term of the agreement; and

wherein the rules processor is further configured to display the output via a second user interface.

10. A computer-implemented apparatus for creating an agreement between a seller and a purchaser for the sale of mortgage loans and tracking compliance with terms of the agreement, the apparatus comprising:

(A) deal management logic configured to generate and store the agreement between the seller and the purchaser for the sale of mortgage loans, the agreement being generated based on information regarding the terms of the agreement provided by a user via a first user interface, the agreement being a master commitment agreement in which the seller agrees to sell a specified volume of mortgage loans to the purchaser in the future, the agreement terms including at least one variance from a set of business rules that (i) define the types of mortgage loans that may later be sold to the purchaser in fulfillment of the master commitment agreement and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans;

(B) committing logic configured to receive a commitment from the seller after the seller and purchaser have entered into the master commitment agreement, the commitment being a commitment by the seller to sell and deliver a volume of mortgage loans, the committing logic being configured to provide the seller the option to apply the commitment to the master commitment agreement or to other master commitment agreements entered into between the seller and the purchaser, the committing logic being configured to provide the seller with information concerning unfulfilled commitment amounts and expiration dates for the master commitment agreement and for the other master commitment agreements entered into between the seller and the purchaser, and the committing logic being configured to receive a selection from the seller to apply the commitment against the master commitment agreement in at least partial fulfillment of the master commitment agreement;

(C) a rules processor, coupled to the deal management logic, the rules processor configured to permit adding or editing of at least one business rule based on the at least one variance and configured to access the business rule during delivery of the mortgage loans to the purchaser to generate an output via a second user interface indicating whether the mortgage loan is acceptable for purchase by the purchaser under the terms of the agreement based on the variance; and

(D) pricing logic configured to evaluate the mortgage loans against the terms of the master commitment agreement and, based on the evaluation, to determine selling prices for the mortgage loans.

11. A computer-implemented apparatus for creating an agreement between a seller and a purchaser for the sale of loans and tracking compliance with terms of the agreement, the apparatus comprising:

a first user interface coupled to user services logic providing a first access point for external systems;

a transaction exchange processor providing a second access point for external systems;

data interfaces providing a third access point for external systems;

acquisition logic, servicer and investor reporting logic, securitization logic, and underwriting logic provided on a common platform and having access to at least one common/synchronized database and coupled to the user services logic, the transaction exchange processor, and the data interfaces, the acquisition logic including;

cash committing logic configured to facilitate performance of cash commitment functions;

lender eligibility logic,coupled to the cash committing logic, the lender eligibility logic limiting cash commitment activity;

pricing logic configured to generate pricing information and provide the pricing information to other logic in the apparatus;

delivery logic configured to check loan data against a set of data format rules;

certification logic configured to ensure that loan documentation is complete and legally binding and that paper documentation matches electronic information delivered by the seller;

custody logic configured to support the custody process; and

deal management logic configured to generate and store the agreement between the seller and the purchaser for the sale of loans, the agreement being generated based on information regarding the terms of the agreement provided by a user via the first user interface, the agreement terms including at least one variance from a set of business rules that (i) define the types of mortgage loans that may be sold to the purchaser and (ii) are applied to a set of loan data for a mortgage loan during delivery of the mortgage loan to the purchaser to determine whether the mortgage loan is acceptable for purchase by the purchaser based on whether the mortgage loan is one of the defined types of mortgage loans;

a rules processor, coupled to the deal management logic, the rules processor configured to

search the set of business rules to identify an adverse impact on at least one business rule by the at least one variance;

generate a new business rule by (i) modifying the at least one business rule, or (ii) creating the new business rule based on at least one input received from a user;

assign a unique rule identifier to the new business rule;

access the new business rule during delivery of the mortgage loan to the purchaser to generate an output indicating whether the mortgage loan is acceptable for purchase by the purchaser under the terms of the agreement based on the variance; and

display the output to the seller via a second user interface.