Note: Descriptions are shown in the official language in which they were submitted.
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1 METHOD AND SYSTEM FOR PROCESSING A MORTGAGE APPLICATION
COPYRIGHT NOTICE
A portion of the disclosure of this patent document contains material which is
subject to
copyright protection. The copyright owner has no objection to the facsimile
reproduction by
anyone of the patent document or of the patent disclosure as it appears in the
Patent and
Trademark Office patent files or records, but otherwise reserves all copyright
rights whatsoever.
BACKGROUND OF THE INVENTION
Field of the Invention
The present invention is directed toward a system and method for processing a
mortgage
application. The system may be implemented on global network such as the
Internet or world-
wide-web.
Description of the Prior Art and Related Information
Systems have been implemented heretofore for on-line pre-processing of
mortgage loan
applications and the like. For example, ditech.com of Costa Mesa, California
has a world-wide-
web site on which a user can complete an online loan application. A Loan
Officer will review
your application. The agent will notify the applicant by phone or e-mail of
pre-approval.
Systems described in U.S. Patent Nos. 5,930,776 and 5,611,052 disclose a
lender direct
credit evaluation and loan processing system. Loan application information is
entered into a
remote terminal. Credit bureau information is accessed by the system. Credit
scoring is
performed, and the loan application is approved or declined.
A property selection system such as that described in U.S. Patent No.
5,754,850, which
is hereby incorporated by reference herein, gives users the ability to search
for properties
according to attributes of the properties. Such attributes may include, for
example, geographic
location, price range information, size. number of bedrooms/bathrooms, quality
of schools, etc.
Such systems are also implemented on the world-wide-web at
http://www.REALTOR.com or
http://www.HomeBuilder.com.
However, none of the systems in the prior art integrate an automated
underwriting engine.
Further, none of the prior art systems integrate an automated underwriting
engine that complies
with industry accepted or standard criteria for processing a loan application.
Further, none of the
prior art systems produce a loan pre-approval status as a result of the
underwriting processing.
which is then forwarded to one or more lenders with contact information for
the applicant.
Further none of the prior art systems integrate a property search engine for
searching for
properties for which the mortgage loan may be applied.
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SUMMARY OF THE INVEIvTTION
The present invention satisfies the shortcomings of mortgage loan processing
systems in
the prior art. The present invention is directed toward a system and method
for processing a
mortgage application. The system may comprise a server with one or more
computer programs
stored thereon. Electrically connected, or included with the server, are one
or more databases. A
property database comprises at least one or a plurality of property records
wherein information
relating to available properties are stored. Each property record has at least
one attribute stored
therein.
The server is electrically connected to a network that is electrically
connected to at least
one, or a plurality of client computers. Each client computer has a
presentation screen for
presenting data. The computer program is adopted to provide selection data to
a client computer
to present a selection screen on the client computer's screen for selecting a
property from the
property database. Each client computer may have an input means which may
comprise, for
example, a computer keyboard and mouse for inputting selection data for
selecting the property
from the property database. The selection screen presented may comprise a
series of screens
presented for selecting a property record based on selected values of
attributes.
The computer program is further adopted to present a loan application data
entry screen
on the client computer's screen, the loan application data entry screen having
loan application
data entry fields for entering loan application data. The computer program is
further adopted to
automatically enter at least one of the property attributes as an initial
entry into at least one of the
data entry fields. For example, one of the loan application data entry fields
may comprise an
initial loan amount as one of the possible entries. The selected property
record may have as one
of its attributes the price of the property. The computer program may enter
the price of the
property as an initial loan amount, possibly subtracting 20% to account for a
down payment on
the property. The user has the option of using the keyboard to change the loan
amount if desired
to a different amount, for example to account for a 10% down payment.
The computer program is further adopted to process the loan application data,
thereby
creating a pre-approval status. In one embodiment, the server is electrically
connected to an
automated underwriting engine or program such as the DESKTOP UNDERWRITER
system by
Fannie Mae or the LOAN PROSPECTOR system by Freddie Mac. The computer program
creates
a loan application data record to be stored in a loan application database for
semi-permanent or
temporary storage. The loan application data record is forwarded to the
automated underwriter
program for processing.
Preferably, the underwriting program performs the underwriting function of the
loan
processing with little or no human intervention. The result of the
underwriting process is a pre-
approval or denial status for the user of the client computer.
A credit processing computer program is stored and executing with, or in
communicative
relationship with, the automated underwriting program. When the loan
application data record
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is forwarded to the automated underwiting program, the loan application data
record may be
immediately forwarded to the credit processing computer program which pulls
credit data
regarding the user of the client computer from at least one of many credit
reporting agencies. or
credit history data providers. The credit processing computer program
populates the acquired
credit data in the loan application data record for processing with the loan
application data stored
therein. The loan application data record is then sent to the automated
underwriter program for
processing.
After processing the loan application data record, the automated underwriter
program 50
forwards a loan pre-approval status for the loan application data record to
the computer program,
which may store the loan pre-approval status in a loan pre-approval database
in a loan pre-
approval status record for later reference. The computer program may notify
the user of the client
computer in real time on the client computer's screen, by e-mail or by mail of
the loan pre-
approval status on behalf of the lender.
Electrically connected to the network are one or more lending institution
computers or
lenders which are adopted to receive the loan pre-approval status for the user
of the client
computer. The computer program is further adopted to forward the pre-approval
status to at least
one of the lenders. Alternatively, a lender may be directly electrically
connected to the server so
that loan pre-approval status information may be forwarded directly to the
lender.
The loan pre-approval status as forwarded to the lender may be in the form of
an e-mail
communication which includes some or all of the loan and credit data from the
loan application
data record. Alternatively, the loan application data record itself may be
sent to the lender if the
lender has a database system for viewing the information in the loan
application data record. A
lending agent from the lender may then contact the user of the client computer
to complete the
loan process.
BRIEF DESCRIPTION OF THE DRAWINGS
Fig. 1 is a block diagram showing a system architecture for the present
invention;
Figs. 2A-2C are a series of flow diagrams illustrating a method for processing
a mortgage
loan application using the system of the present invention;
Figs. 3A-3D are a series of exemplary selection screens for presenting, and
for selecting,
a property record based on selected values of attributes of the property; and
Fig. 4 illustrates an exemplary loan application data entry screen for
entering loan
application information.
DETAILED DESCRIPTION OF THE INVENTION
With reference to Fig. 1, a system architecture for processing a mortgage
application is
shown. The system may comprise a server 100 with a computer program 102 stored
thereon.
Electrically connected, or included with the server 100 are one or more
databases 104-108. A
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1 property database 108 comprises at least one or a plurality of property
records 110 wherein
information relating to available properties are stored. Each property record
has at least one
attribute 112 stored therein. The structure of the property database 108 may
comprise the
structure shown in Figs. 7a-7b of U.S. Pat. No. 5,754,850.
The server is electrically connected to a network 300 that is electrically
connected to at
least one or a plurality of client computers 200. Each client computer has a
presentation screen
202 for presenting data. The computer program 102 is adopted to provide
selection data to a
client computer 200 to present a selection screen on the client computer's
screen 202 for selecting
a property from the property database 108. Each client computer may have an
input means 204
which may comprise, for example, a computer keyboard and mouse 206 for
inputting selection
data for selecting the property from the property database 108. The selection
screen presented
may comprise a series of screens presented for selecting a property record 110
based on selected
values of attributes 112 as shown in Figs. 3A-3D, and as shown and described
at the world-wide-
web addresses http://www.REALTOR.com and http://www.HomeBuilder.com. Selection
of
properties may follow the steps described in U.S. Pat. No. 5,754,850
incorporated by reference
herein.
The computer program 102 is further adopted to present a loan application data
entry
screen, as shown in Fig. 4, on the client computer's screen 202, the loan
application data entry
screen having loan application data entry fields 400 for entering loan
application data. The
computer program 102 is further adopted to automatically enter at least one of
the property
attributes 112 as an initial entry into at least one of the data entry fields
400. For example, one
of the loan application data entry fields 400 may comprise an initial loan
amount as one of the
possible entries. The selected property record 110 may have as one of its
attributes 112 the price
of the property. The computer program 102 may enter the price of the property
as an initial loan
amount, possibly subtracting 20% to account for a down payment on the
property. The user has
the option of using the keyboard 204 to change the loan amount if desired to a
different amount.
With reference back to Fig. l, the computer program 102 is further adopted to
process the
loan application data, thereby creating a pre-approval status. In one
embodiment, the server 100
is electrically connected to an automated underwriting engine or program 50
such as the
DESKTOP UNDERWRITER system by Fannie Mae or the LOAN PROSPECTOR system by
Freddie Mac. The computer program 102 creates a loan application data record
120 to be stored
in a loan application database 104 for semi-permanent or temporary storage.
The loan
application data record 120 is forwarded to the automated underwriter program
50 for processing.
A credit processing computer program 52 is stored and executing with, or in
communicative relationship with, the automated underwriting program 50. When
the loan
application data record is forwarded to the automated underwriter 50, the loan
application data
record may be immediately forwarded to the credit processing computer program
52 which pulls
credit data regarding the user of the client computer 200 from at least one of
many credit
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reporting agencies. or credit history data providers 150. that commonly store
credit history data
organized by social security number. The credit history data provider 150 may
be either directly
connected to the credit processing computer program 52, directly connected to
the server 100.
or connected through secure connection over the world-wide-web 300. The credit
processing
computer program 52 populates the acquired credit data in the loan application
data record for
processing with the loan application data stored therein. The loan application
data record is then
sent to the automated underwriter program 50 for processing.
After processing the loan application data record, the automated underwriter
program 50
forwards a loan pre-approval status for the loan application data record to
the computer program
50, which may store the loan pre-approval status in a loan pre-approval
database 106 in a loan
pre-approval status record 122 for later reference. The computer program 50
may notify the user
of the client computer 200 in real time on the client computer's 200 screen,
by e-mail or by mail
of the loan pre-approval status on behalf of the lender.
Electrically connected to the network 300 are one or more lending institution
computers
or lenders 250 which have the ability to receive the loan pre-approval status
for the user of the
client computer 200. The computer program 102 is further adopted to forward
the pre-approval
status to at least one of the lenders 250. Alternatively, a lender 250 may be
directly electrically
connected to the server 100 so that loan pre-approval status information may
be forwarded
directly to the lender 250.
The loan pre-approval status as forwarded to the lender may be in the form of
an e-mail
communication which includes some or all of the loan and credit data from the
loan application
data record 120. Alternatively, the loan application data record itself may be
sent to the lender
250 if the lender 250 has a database system for viewing the information in the
loan application
data record. A lending agent from the lender 250 may then contact the user of
the client
computer 200 to complete the loan process.
With reference to Figs. 2A-2C, a series of flow diagrams illustrating the
method for
processing a mortgage loan application using the system of the present
invention is shown. The
method comprises allowing selection of a property record 110 from the property
database 108,
the property record comprising attributes 112 from a client computer 200, step
500. The
computer program 102 receives property selection criteria from the client
computer 200 resulting
from a user entering selection commands on the keyboard 204 and mouse 206,
step 502. The
computer program 102 searches the property database 108 for property records
110 having the
selected attributes 112. The computer causes the selected property records to
be presented on the
screen 202, step 504.
Some ofthe displayed properties are presented with a "Loan Pre-Pre-approval"
button 350
(Fig. 3D) on the screen 202, step 506. If the user of client computer 200
selects button 350, step
508, then processing moves to step 512 (Fig. 2B). The presentation of the
selected properties
continues if button 350 is not selected, exiting the selected properties
display screen if the user
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chooses to do so, step ~ i ;.
With reference to Fig. 2B, the computer program l02 presents the loan
application data
entry screen on screen 202 having the plurality of fields 400. step 512. The
computer program
102 may automatically enter at least one of the property attributes as an
initial entry into at least
one of the entry fields 400, step 514. The client computer 200 continues to
receive loan
application data entered using the keyboard 204 and the mouse 206, from which
the computer
program 102 receives the entered loan application data, step 516.
After receiving the loan application data, the computer program 102 creates
the loan
application data record 120 based on the received loan. step 518. The loan
application data
record 120 is then sent to the credit data processor program 52. step 520. The
credit processor
program 52 then accesses the credit history or worthiness data for the user
stored at the credit
history provider 150. step 522. The access may be made either over a direct
link with the credit
history data provider 150, or over the Internet 300. After receiving the
credit history data, step
524, the credit history data processor 52 populates the loan application data
record 120 with the
credit history data, step 526. Next, the loan application data record is sent
to the automated
underwriter program 50, step 527.
With reference to Fig. 2C, the automated underwriter program 50 continues
processing
of the loan application data record 120, step 528. Such processing may include
comparing the
loan application data, which may include vital information related to the user
such as
employment and salary information along with the credit history data, to a
matrix of minimum
requirements for the size of the loan. If the automated underwriting program
50 returns a pre-
approval status, step 530, then processing moves to step 534. Otherwise,
processing moves to
step 532 as described below.
If the loan was pre-approved, step 530, then the automated underwriter program
50, or the
computer program 120, creates a loan pre-approval status record 122, step 534,
and forwards a
notice of pre-approval message to the user on behalf of the lender. The
computer program 50
forwards the pre-approval status to one or more lenders 250, step 536.
Forwarding of the pre-
approval status may include forwarding an e-mail created by the computer
program 50 to the
lender 250, or, if the lender has the capability to read and display the loan
pre-approval record
122 through database management software, then the loan pre-approval record
122 is forwarded
to the lender. The lender 250 may then contact the user to complete the loan
process, step 540.
The computer program 50 may also send a message in real-time. e-mail or postal
mail to the user
If step 530 indicates that the loan was not pre-approved, then the loan
application data
record is forwarded to the lender with a not pre-approved status or notice
indicated, step 532.
The system may notify the user on behalf of the lender of the not pre-approved
status, step 542,
either by e-mail, in real time on screen, or by postal service. The lender
will then contact the user
to discuss the not pre-approved status, step 544.
It will thus be seen that changes may be made in carrying out the above system
and
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method and in the construction set forth without departing from the spirit and
scope of the
invention, it is intended that any and all matter contained in the above
description and shown in
the accompanying drawings shall be interpreted as illustrative and not in a
limiting sense.
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