Interactive mortgage and loan information and real-time trading system

Abstract

The invention provides a method and system for trading loans in real time. Loan applications, such as home mortgage loan applications, are made available electronically to receive bids from a plurality of potential lenders. A transaction server maintains a database of pending loan applications and their statuses, which is accessible over a communications channel, such as the Internet. Each party to a loan can search and modify the database consistent with their role in a transaction. The invention provides smart computerized administration that ensures personal preferences of the participating parties are enforced, errors and duplication is avoided, and information relating to accumulated data is available to the parties consistent with their roles.

Description

BACKGROUND OF THE INVENTION [0001] 1. Field of the Invention [0002] The invention relates to an interactive mortgage and loan information and real-time trading system. [0003] 2. Related Art [0004] In the art of mortgage loans and mortgage brokering, a relatively large amount of information must be exchanged to conduct a loan transaction, such as a new home mortgage loan. In attempting to obtain a competitive loan for the borrower, or in attempting to maintain competitive rates for lenders to offer loans, this relatively large amount of information must be collected, compared, evaluated, and disseminated to possible counterparties to the transaction. The major parties include the borrower (and / or an agent such as a mortgage broker) and the lender; other parties can include appraisal agents, regulatory agencies, mortgage insurance companies, and secondary mortgage market participants. [0005] In known practices, nearly all the information relating to a loan transaction is collected by ...

AI Technical Summary

Benefits of technology

[0011] In a preferred embodiment, the transaction server provides for detecting substantially identical loan applications originated by the same broker, so as to prevent double applications for the same borrower, and also provides brokers and lenders each the capability for designating counterparties with whom they wish not to conduct business. The transaction server is also supported by administration client / server devices for maintaining consistency and integrity of the transactions and relationships between parties.

Problems solved by technology

As all of these operations are presently performed by hand, initiating loan transactions is relatively expensive.

Although some forms of automation are known, such as uniform credit scoring for loan applications and automatic generation of loan application documents, there are no known systems in the field of mortgage lending for providing relatively automatic and widespread dissemination of loan application information or lending program information for automated comparison in real time.

The fact that these operations are performed by hand, rather than with the aid of computer processing, also limits the flexibility of the parties to the transaction.

For borrowers, it is relatively difficult to compare more than a relatively few lending programs.

For lenders, it is relatively difficult to select anything but a relatively simple set of lending categories for prospective borrowers.

It is also practically impossible for lenders to experiment with new products without broadcasting knowledge of those new products to a wide population, including their competitors.

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