Method and apparatus for a mortgage loan originator compliance engine

Abstract

The automated compliance engine of the present invention uses the Federal, State, local and professional regulations and requirements and implementing instructions to generate a plurality of tasks which can be used to control and drive the process of handling a mortgage loan application to completion and to monitor the completion of the tasks in order to generate a Completion Certificate. Mortgage loan requestors may specify that the system will generate the plurality of required tasks, provide the plurality of required tasks to the requestor for his execution, and monitor the completion of all required tasks so as to provide a completion certificate to the requestor. Alternatively, loan requesters may specify that the automated compliance engine will generate the plurality of required tasks, will transfer the required tasks to other systems qualified to manage and control the execution of the required tasks, and the compliance engine will monitor the completion of all required tasks so as to provide a completion certificate to the requester.

Description

RELATED APPLICATIONS [0001] This application claims the benefit of U.S. Provisional Application No. 60 / 189,635 filed Mar. 14, 2000. This application is also related to the following utility applications which are filed on the same day as this application: [0002] Ser. No. ______ Filed ______, titled “A method and apparatus for a mortgage loan origination gateway”; [0003] Ser. No. ______ Filed ______, titled “A method and apparatus for verification of a qualified mortgage loan originator”; [0004] Ser. No. ______ Filed ______, titled “Method and Apparatus for a Mortgage Loan Management System”; [0005] Ser. No. ______ Filed ______, titled “A method and apparatus for a mortgage loan task flow process”; [0006] Ser. No. ______ Filed ______, titled “A method and apparatus for a mortgage loan process interaction gateway”; [0007] Ser. No. ______ Filed ______, titled “A method and apparatus for a mortgage loan transaction service provider gateway”; [0008] Ser. No. ______ Filed ______, titled “...

AI Technical Summary

Problems solved by technology

Moreover the mortgage loan process is labor intensive, error prone and time consuming for all parties concerned, making it difficult for a real estate professional to track the services he or she provided to satisfy RESPA and state requirements to justify receiving compensation.

Since the inception of the mortgage process wherein a borrower and lender associated themselves to enact a mutually beneficial and agreeable relationship, the lending process has become increasingly complex.

In all, the process was very subjective, and great weight was given to the friendship (or lack of it) between the borrower and lender, as well as other factors which, in today's lending environment, are discouraged or are illegal.

While these oversight demands are generally considered to be a benefit to the borrower-lender relationship, it is, nonetheless a burden to all parties, and significant increases in both time and cost are accrued to the process.

A further disabling of the process exists when errors are made, an event more common when persons are involved in simple, repetitive data handling and manipulation tasks.

Until such a commitment is obtained, it is generally not possible for the individual to faithfully commit to the purchase of property.

Inherent in most property transactions, especially those involving a mortgage, are other elements which, as suggested before, serve to protect the interests of all concerned parties, but which unnecessarily protract the underwriting process.

The timeliness and accuracy of transactions can adversely affect the payment of various agents or workers involved in the process.

Furthermore, because of the almost casual connection between the parties to the transaction, coupled with heretofore rigid definitions of each worker's responsibility, creative solutions to the aforementioned problems were not forthcoming, and little could be done to remedy these problems.

Personal intervention on the part of agents or other workers could help, but weren't part of the scope of the transaction, were unreliable, and were differentially applied, often in consideration of such elements as the wealth or prestige of the borrower, the value of the property, personal friendships, or other less tangible factors.

In this instance, the commission is often fixed by industry convention or statute, and the Real estate sales professional typically doesn't enjoy the benefit of serving as both listing and buying agent, which might net a full commission.

The current state of the art simply does not provide a means whereby the real estate sales professional, or any other agent or worker, may participate in the other portions of the monetary flow, beyond that which is historically common to their respective industries.

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