Credit/financing process

DC CAFC

US 7,366,694 B2
Filed: 07/29/2002
Issued: 04/29/2008
Est. Priority Date: 08/16/2001
Status: Expired due to Fees

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1. A computer-implemented system for enabling borrowers to anonymously shop for loan packages offered by a plurality of lenders, the system comprising:

a database that stores loan package data specifying loan packages for home loans offered by the lenders, the loan package data specifying, for each of the loan packages, at least a loan type, an interest rate, and a required borrower credit grading; and

a computer system that provides;

a first interface that allows the lenders to securely upload at least some of the loan package data for their respective loan packages to the database over a computer network; and

a second interface that prompts a borrower to enter personal loan evaluation information, and invokes, on a computer, a borrower grading module which uses at least the entered personal loan evaluation information to calculate a credit grading for the borrower, said credit grading being distinct from a credit score of the borrower, and being based on underwriting criteria used by at least some of said lenders;

wherein the second interface provides functionality for the borrower to search the database to identify a set of loan packages for which the borrower qualifies based on the credit grading, and to compare the loan packages within the set, including loan type and interest rate, while remaining anonymous to each of the lenders and without having to post a request to any of the lenders, said second interface configured to display to the borrower an indication of a total cost of each loan package in the set, said total cost including costs of closing services not provided by corresponding lenders;

and wherein the computer-implemented system further enables the borrower to selectively expose at least the personal loan evaluation information to a lender corresponding to a selected loan package.

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Abstract

A method for a borrower to obtain and/or evaluate desired financial services is disclosed. Personal information from the borrower is obtained and recorded. The personal information includes reasons that the borrower wants to obtain the financing. Financing evaluation information based on pre-established and objective criteria used by at least one established financial institution that provides financing of the type sought by the borrower is obtained and recorded. A credit grading for the borrower is determined based on the personal information, and the financing evaluation information. The credit grading is determined by an independent entity that will not provide the financing to the borrower. The financing may be a loan, such as a mortgage loan or an auto loan or the financing may be the issuance of a credit card or a line of credit. The independent entity also compiles a comparison of closing costs associated with the financial transactions, and can optionally provide an estimate of those costs for one, and preferably for a variety of providers of the desired financing.

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37 Claims

1. A computer-implemented system for enabling borrowers to anonymously shop for loan packages offered by a plurality of lenders, the system comprising:
- a database that stores loan package data specifying loan packages for home loans offered by the lenders, the loan package data specifying, for each of the loan packages, at least a loan type, an interest rate, and a required borrower credit grading; and
  
  a computer system that provides;
  
  a first interface that allows the lenders to securely upload at least some of the loan package data for their respective loan packages to the database over a computer network; and
  
  a second interface that prompts a borrower to enter personal loan evaluation information, and invokes, on a computer, a borrower grading module which uses at least the entered personal loan evaluation information to calculate a credit grading for the borrower, said credit grading being distinct from a credit score of the borrower, and being based on underwriting criteria used by at least some of said lenders;
  
  wherein the second interface provides functionality for the borrower to search the database to identify a set of loan packages for which the borrower qualifies based on the credit grading, and to compare the loan packages within the set, including loan type and interest rate, while remaining anonymous to each of the lenders and without having to post a request to any of the lenders, said second interface configured to display to the borrower an indication of a total cost of each loan package in the set, said total cost including costs of closing services not provided by corresponding lenders;
  
  and wherein the computer-implemented system further enables the borrower to selectively expose at least the personal loan evaluation information to a lender corresponding to a selected loan package.
- View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 25, 26, 27, 28, 29, 30, 37)
- - 2. The system of claim 1, wherein the second interface comprises a set of web pages of a web site.
  - 3. The system of claim 1, wherein the computer-implemented system is operated by a third party evaluator that is independent of said lenders, and the borrower grading module comprises software confidentially provided to the third party evaluator by at least one of the lenders, said software allowing for automated application of the underwriting criteria.
  - 4. The system of claim 1, wherein the loan package data specifies an interest rate and all fees for at least one guaranteed-cost loan package.
  - 5. The system of claim 1, wherein the loan package data for at least some of the loan packages includes guaranteed closing costs.
  - 6. The system of claim 1, wherein the second interface displays information about the loan packages in a spread sheet format.
  - 7. The system of claim 6, wherein the information about the loan packages comprises loan term, loan rate, loan conditions and loan closing costs.
  - 8. The system of claim 1, wherein the borrower grading module calculates the credit grading, at least in-part, using at least one lender-specific loan evaluation system of a particular lender.
  - 9. The system of claim 1, wherein the borrower grading module calculates the credit grading based in part on a borrower credit rating obtained from a credit bureau.
  - 10. The system of claim 1, wherein the borrower grading module calculates the credit grading based on objective criteria used by a plurality of lenders.
  - 11. The system of claim 1, wherein the computer-implemented system outputs the credit grading to the borrower.
  - 12. The system of claim 1, wherein the second interface presents to the borrower closing cost information for a loan, said closing cost information compiled by a third party that does not provide the loan.
  - 13. The system of claim 1, wherein the second interface additionally provides functionality for the borrower to apply for a selected loan.
  - 14. The system of claim 1, wherein the borrower grading module generates the credit grading using a non-lender-specific credit rating algorithm that is accepted by each of said plurality of lenders.
  - 15. The system of claim 1, wherein some of the loan package data stored in the database and displayed via the second interface is provided by a third party that is not one of said lenders.
  - 16. The system of claim 1, wherein the computer-implemented system is capable of pre-approving the borrower for the selected loan package on behalf of the lender without exposing any information about the borrower to the lender.
  - 17. The system of claim 1, wherein the computer-implemented system is capable of fully approving the borrower for the selected loan package on behalf of the lender.
  - 18. The system of claim 1, wherein the computer-implemented system reveals to the borrower monetary amounts the lenders are paying for the funds associated with the loan packages, such that the borrower can take said amounts into consideration in selecting a loan package.
  - 25. The system of claim 1, wherein the computer-implemented system communicates the personal loan evaluation information to the lender in association with an anonymous identifier of the borrower.
  - 26. The system of claim 1, wherein the computer-implemented system is configured to communicate credit information of the borrower to said lender while concealing the identity of the borrower.
  - 27. The system of claim 1, wherein the computer-implemented system additionally enables the borrower to obtain a pre-approval from the lender for the selected loan package while remaining anonymous to the lender, said pre-approval including guaranteed loan terms for the selected loan package.
  - 28. The system of claim 27, wherein the selected loan package is a mortgage-based home loan, and the pre-approval additionally includes guaranteed closing costs for the selected loan package.
  - 29. The system of claim 1, wherein the computer-implemented system is further capable of interacting with said lender to enable the borrower to anonymously obtain approval for the selected loan package.
  - 30. The system of claim 1, wherein the computer-implemented system additionally provides functionality for the borrower to select one or more third party vendors to provide closing services associated with the selected loan package.
  - 37. The system of claim 1, wherein the computer system is a distributed system.

19. A computer-implemented method, comprising:
- receiving, over a computer network, personal data entered by a borrower, said personal data comprising loan evaluation data;
  
  automatically generating or causing the generation of a credit grading for the borrower such that the credit grading is dependent upon the loan evaluation data entered by the borrower, said credit grading being distinct from a credit score obtained from a credit bureau, and being generated at least partly using underwriting criteria of one or more lenders;
  
  identifying a set of loan packages for which the borrower qualifies based on said credit grading, each loan package including home loan information provided by a lender, and including guaranteed closing cost information for closing services not provided by the lender, wherein the set of loan packages is identified without requiring the borrower to post a request to any lender;
  
  outputting information regarding the set of loan packages, including the guaranteed closing cost information for closing services not provided by the lender, to the borrower via a user interface that enables the borrower to at least compare total costs of the loan packages for which the borrower qualifies, said user interface additionally providing functionality for the user to select and apply for one of said loan packages; and
  
  in response to a request from the borrower in association with a selected loan package, communicating information of the borrower to a corresponding lender.
- View Dependent Claims (20, 21, 22, 23, 24)
- - 20. The method of claim 19, wherein the method further comprises outputting to the borrower an indication of an amount a lender is paying for funds associated with at least one of the loan packages.
  - 21. The method of claim 19, wherein the credit grading is generated using a non-lender-specific grading algorithm.
  - 22. The method of claim 19, wherein the method is performed by a computer system operated by a third party evaluator that is independent of said lenders, and the method comprises automatically applying the underwriting criteria, at least in part, by executing software confidentially provided to the third party evaluator by at least one of said lenders.
  - 23. The method of claim 19, further comprising pre-approving the borrower for the selected loan package on behalf of the lender without exposing any information of the borrower to the lender.
  - 24. The method of claim 19, further comprising approving the borrower for the selected loan package on behalf of the lender.

31. A computerized method of reducing discriminatory lending, comprising:
- obtaining personal and financial information of a borrower seeking a home loan;
  
  generating a credit grading for the borrower, at least in part, via execution of software that automatically applies underwriting criteria of at least one lender to the financial information of the borrower, wherein the credit grading is generated without exposing any of said financial information of the borrower to any lender;
  
  using at least the credit grading to identify a plurality of home loans for which the borrower qualifies, including home loans offered by multiple different lenders, without exposing any information of the borrower to any lender;
  
  outputting information to the borrower regarding the plurality of home loans, said information including interest rates and total costs of said home loans, said total costs including costs of closing services not provided by the corresponding lenders; and
  
  approving the borrower for a selected home loan of said plurality of home loans while the borrower remains anonymous to the lender offering the selected home loan;
  
  wherein the method inhibits discriminatory lending by enabling the borrower to obtain approval for the selected home loan while remaining anonymous to the lender.
- View Dependent Claims (32, 33, 34, 35, 36)
- - 32. The method of claim 31, wherein the step of approving the borrower comprises guaranteeing a total cost of the loan, including closing costs.
  - 33. The method of claim 31, wherein the step of approving the borrower comprises exposing the financial information of the borrower to the lender while concealing the identity of the borrower.
  - 34. The method of claim 31, wherein the step of outputting information to the borrower comprises offering guaranteed closing costs to the borrower in connection with particular home loans.
  - 35. The method of claim 31, wherein the method is performed by a third party evaluator entity that is not one of said lenders.
  - 36. The method of claim 35, wherein the step of generating the credit grading is performed via execution of software confidentially provided to the third party evaluated by at least one of said lenders.

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Litigation Data

Current Assignee
Mortgage Grader Incorporated
Original Assignee
Mortgage Grader Incorporated
Inventors
Lazerson, Jeffrey M.
Primary Examiner(s)
Kazimi; Hani M.
Assistant Examiner(s)
Kesack; Daniel

Application Number

US10/207,344
Publication Number

US 20030036996A1
Time in Patent Office

2,101 Days
Field of Search

705/38, 705/39, 705/42
US Class Current

705/38
CPC Class Codes

G06Q 30/02   Marketing; Price estimation...

G06Q 40/03   Credit; Loans; Processing t...

G06Q 40/08   Insurance

Credit/financing process

First Claim

1 Assignment

Litigations

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Abstract

297 Citations

37 Claims

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Credit/financing process

First Claim

1 Assignment

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Litigations

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Accused Products

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Abstract

297 Citations

37 Claims

Specification

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Solutions

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