System and method for processing a loan

• US 7,925,579 B1
• Filed: 12/30/2005
• Issued: 04/12/2011
• Est. Priority Date: 12/01/2003
• Status: Active Grant

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Koch, Michael W., Plofchan, Peter G., Murphy Kobus, Anne M., Pomeroy, Richard C., Flaxman, David R., Tantoco-Hobbs, Minerva L., Packer, Daniel
• Primary Examiner(s): Hamilton; Lalita M
• Application Number:
  US11/322,358
• Time in Patent Office: 1,929 Days
• Field of Search: 705/35, 705/38, 705/37
• 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 40/02 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

Abstract

A method of managing pipeline risk comprises processing a plurality of mortgage loan applications and managing pipeline risk based on status information for the mortgage loan applications. The processing is performed by a computer-implemented workflow engine responsive to user inputs. The processing includes prompting a user to perform tasks that need to be performed in connection with the mortgage loan applications and maintaining status information relating to status of the tasks that need to be performed. The pipeline risk is managed based on the status information for the mortgage loan applications maintained by the workflow engine.

Claims

1. A method of managing pipeline risk, comprising:

processing a plurality of mortgage loan applications by a computer system having a storage system, the processing being performed by a computer-implemented workflow engine responsive to user inputs, the processing including prompting a user to perform tasks that need to be performed in connection with the mortgage loan applications and maintaining status information relating to status of the tasks that need to be performed;

storing by the computer system the status information in the storage system;

determining by the computer system a probability of fallout for each of the mortgage loan applications, the probability of fallout for each mortgage loan application being determined based on the status information relating to the status of the tasks that need to be performed in connection with the mortgage loan applications; and

managing pipeline risk by the computer system based on the status information for the mortgage loan applications maintained by the workflow engine and the probability of fallout for the mortgage loan applications.

2. A method as defined in claim 1, wherein managing pipeline risk further comprises adjusting a hedging strategy based on the probability of fallout for the mortgage loan applications.

3. A method as defined in claim 2, wherein adjusting the hedging strategy comprises adjusting a mix of financial instruments used for hedging to take into account the probability of fallout.

4. A method as defined in claim 3, wherein the mix of financial instruments is further adjusted to take into account a predicted time frame for closing.

5. A method as defined in claim 1, wherein managing pipeline risk further comprises predicting estimated loan closing dates based on the status information provided by the workflow engine, and performing hedging based on the predicted closing dates.

6. A method as defined in claim 1, wherein managing pipeline risk further comprises determining that a probability of a mortgage loan application closing on a scheduled closing date is below a threshold based on the status information provided by the workflow engine and, in response, adjusting a hedging strategy to reflect a later closing date.

7. A method as defined in claim 1, further comprising

predicting a probability of closing for the plurality of mortgage loan applications based on the status information;

and

generating a report which reflects a time horizon of closing and a probability of closing for the mortgage loan applications.

8. A method as defined in claim 1, wherein the plurality of mortgage loan applications are associated with a lender, and wherein managing pipeline risk further comprises aggregating the status information for the mortgage loan applications and generating a report showing a makeup of mortgage loan pipeline of the lender.

9. A method as defined in claim 1, wherein the report shows aggregate information regarding probability of closing and loan dollar values.

10. A method as defined in claim 1, wherein the user inputs for the mortgage loan applications are received from a plurality of different users, wherein the status information relates to different tasks being handled by different ones of the plurality of different users, wherein the status information is processed by workflow analysis logic, and wherein the workflow analysis logic is configured to recognize patterns across the plurality of different users.

11. A method as defined in claim 10, wherein the patterns relate to likely causes of fallout.

12. A method as defined in claim 10, wherein the patterns relate to tasks that are correlated with fallout.

13. A method as defined in claim 1, wherein the status information received from the workflow engine is real time status information, and wherein managing pipeline risk comprises adjusting a hedging strategy based on the real time status information.

14. A method as defined in claim 1, wherein the tasks that need to be performed include documents that need to be obtained, and wherein the status information relates to status of the documents that need to be obtained.

15. A method as defined in claim 1, further comprising determining likely fallout points and determining the status of the plurality of mortgage loan applications at the likely fallout points.

16. A computer-implemented mortgage loan application data processing system comprising:

a computer memory; and

a processor coupled to the computer memory and configured to implement

a workflow engine, the workflow engine having stored therein a list representing tasks that need to be performed in connection with mortgage loan applications associated with a lender, the workflow engine being configured to prompt users to perform the tasks and to track status of the tasks;

workflow analysis logic including pipeline risk management logic, the pipeline risk management logic being configured to receive status information concerning the status of the tasks, the pipeline risk management logic being configured to generate a report showing makeup of a loan pipeline of the lender, the report showing the makeup of the loan pipeline in a manner which reflects a time horizon of closing and a probability of fallout for the mortgage loan applications, the probability of fallout for the mortgage loan applications being determined by workflow analysis logic based on the status information concerning the status of the tasks.

17. A system as defined in claim 16, wherein the workflow analysis logic is configured to predict fallout based on missed deadlines in connection with the mortgage loan applications.

18. A system as defined in claim 16, wherein the workflow analysis logic is configured to predict fallout based on periods of inactivity in connection with documents required in connection with the mortgage loan applications.

19. A computer-implemented method of managing pipeline risk, comprising:

receiving mortgage loan application data by a computer system having a storage system pertaining to a plurality of mortgage loan applications for a plurality of mortgage loans for a plurality of borrowers;

generating by the computer system underwriting findings for the plurality of mortgage loan applications using an automated underwriting engine, the underwriting engine being configured to generate the underwriting findings including underwriting conditions based on the mortgage loan application data;

generating by the computer system a plurality of lists for the plurality of mortgage loan applications, the plurality of lists representing tasks that need to be performed to fulfill the underwriting conditions in connection with the plurality of mortgage loan applications;

storing by the computer system the plurality of lists in the storage system a computer;

processing by the computer system the plurality of mortgage loan applications, the processing being performed by a workflow engine using the plurality of tasks lists and responsive to user inputs, wherein processing the plurality of mortgage loan applications comprises

prompting users to perform the tasks using user interface logic, the user inputs for the plurality of mortgage loan applications being received from a plurality of different users, and

maintaining status information concerning the performance of the tasks represented in the plurality of lists, wherein the status information relates to different tasks being handled by different ones of the plurality of different users, wherein the tasks that need to be performed include documents that need to be obtained, and wherein the status information relates to status of the documents that need to be obtained;

determining by the computer system a likelihood of fallout for each of the plurality of mortgage loan applications, the likelihood of fallout being assessed by fallout prediction logic based on the status information; and

managing pipeline risk by the computer system based on the likelihood of fallout for the plurality of mortgage loan applications, including adjusting a hedging strategy based on the likelihood of fallout, wherein adjusting a hedging strategy includes adjusting a mix of financial instruments used for hedging to take into account the likelihood of fallout.

20. A method as defined in claim 19, further comprising generating a report which reflects a time horizon of closing for the plurality of mortgage loan applications.

21. A computer-implemented mortgage loan data processing system, comprising:

a computer memory; and

a processor coupled to the computer memory and configured to implement

task manager logic, the task manager logic being configured to receive a plurality of underwriting findings associated with a respective plurality of mortgage loan applications from an automated underwriting engine, and the task manager logic being configured to generate a respective plurality of lists representing tasks that need to be performed in connection with the plurality of mortgage loan applications based on the plurality of underwriting findings;

a workflow engine coupled to the task manager logic, the workflow engine being configured to prompt a plurality of different users to perform the tasks and to maintain status information concerning the tasks that need to be performed, the tasks that need to be performed including documents that need to be obtained, and wherein the status information relates to status of the documents that need to be obtained;

workflow analysis logic coupled to the workflow engine, the workflow analysis logic being configured to provide tools configured to assist a user with managing pipeline risk based on the status information concerning the tasks that need to be performed, the tools being configured to assist the user with managing pipeline risk by adjusting hedging strategies based on a probability of fallout and estimated loan closing dates for the plurality of mortgage loan applications, including adjusting a mix of financial instruments used for hedging to take into account the probability of fallout, wherein the tools comprise logic configured to (i) determine the probability of fallout as a function of the status of the tasks that need to be performed, (ii) predict the estimated loan closing dates based on the status information provided by the workflow engine, and performing hedging based on the predicted closing dates, (iii) determine likely fallout points and determine the status of the plurality of mortgage loan applications at the likely fallout points, (iv) aggregate status information for the plurality of mortgage loan applications and generate reports showing a makeup of mortgage loan pipeline of the lender, the reports showing aggregate information regarding probability of closing, time horizon of closing and loan dollar values for the plurality of mortgage loan applications, and (v) recognize patterns across the plurality of different users, including patterns related to likely causes of fallout, and generate reports showing the recognized patters.

22. A computer-implemented data processing system for managing processing of mortgage loan applications, comprising:

a computer memory; and

a processor coupled to the computer memory and configured to implement

(A) an underwriting engine, the underwriting engine being configured to receive mortgage loan application data pertaining to mortgage loan applications for mortgage loans for borrowers, the underwriting engine being configured to generate underwriting findings including underwriting conditions for each of the mortgage loan applications;

(B) task manager logic, the task manager logic being configured to receive the underwriting findings from the automated underwriting engine, the task manager logic comprising rules logic including

(1) underwriting rules, the underwriting rules being useable to process the underwriting findings to generate lists representing tasks that need to be performed in connection with the mortgage loan applications, and

(2) lender rules, the lender rules comprising lender-specific rules for processing the underwriting findings to configure which tasks are represented in the lists in accordance with lender preferences;

(C) a workflow engine, the workflow engine being configured to receive the lists from the task manager logic, the workflow engine being configured to prompt users to perform the tasks represented in the lists and to track completion of the tasks represented in the lists;

(D) a service ordering engine, the service ordering engine being connected to service providers by way of the Internet, the service providers being entities that perform services in connection with mortgage loan applications, the service ordering engine being configured to order services from the service providers in connection with the mortgage loan applications;

(E) data capture services logic, the data capture services logic comprising logic for capturing data associated with documents received in connection with the mortgage loan applications, the documents being received responsive to the tasks, the data capture services logic being configured to associate documents received from the service providers with the mortgage loan applications;

(F) integration logic, the integration logic being configured to receive additional tasks from other sources such that the additional tasks may be integrated with the lists generated based on the underwriting findings;

(G) user interface logic, the user interface logic including web-to-workflow engine middle tier logic, the middle tier logic being configured to provide a plurality of web-based user interfaces accessible to users by way of the Internet, the plurality of user interfaces including

(1) a processor user interface, the processor user interface being accessible to human processors that processes the mortgage loan applications by performing the tasks represented in the lists, the processor user interface being configured to access the service ordering engine to order a service in connection with the mortgage loan applications, the processor user interface comprising screen displays which prompt the human processor to perform the tasks represented in the lists, the screen displays prompting the human processor to perform the tasks by displaying the tasks and displaying status information for the tasks,

(2) a service provider user interface, the service provider user interface being accessible by the service providers in connection with providing the services, the service provider user interface being useable by the service providers to transmit documents to be received and processed using the data capture services logic, and

(3) an administrator interface, the administrator interface being accessible by the lender to configure the lender rules according to the lender preferences; and

(H) workflow analysis logic, the workflow analysis logic being configured to provide tools configured to assist a user with managing pipeline risk based on the real time status information concerning the tasks that need to be performed from the workflow engine, the tools being configured to assist the lender with managing pipeline risk by adjusting hedging strategies based on a probability of fallout and estimated loan closing dates for the plurality of mortgage loan applications, including adjusting a mix of financial instruments used for hedging to take into account the probability of fallout and estimated loan closing dates, wherein the tools comprise logic configured to (i) determine a probability of fallout as a function of the status of the tasks that need to be performed, (ii) predict the estimated loan closing dates based on the status information provided by the workflow engine, and perform hedging based on the predicted closing dates, (iii) determine likely fallout points and determining the status of the plurality of mortgage loan applications at the likely fallout points, and (iv) aggregate status information for the plurality of mortgage loan applications and generate reports showing a makeup of mortgage loan pipeline of the lender, the reports showing aggregate information regarding probability of closing, time horizon of closing and loan dollar values for the plurality of mortgage loan applications.