System for matching borrowers and lenders

Abstract

A system and method are disclosed for a borrower to obtain and / or evaluate desired financial services. Personal information from the borrower is obtained and recorded. A credit grading for the borrower is determined based on the personal information, and 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. The credit grading is determined by an independent entity (or its computer system) 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 may also compile a comparison of closing costs associated with the financial transactions.

Description

RELATED APPLICATIONS[0001]This application is a continuation of U.S. application Ser. No. 10 / 207,344, filed Jul. 29, 2002, which is a continuation-in-part of U.S. patent application Ser. No. 10 / 139,418, filed May 6, 2002, which claims the benefit of the following provisional applications: Appl. No. 60 / 312,919, filed Aug. 16, 2001; Appl. No. 60 / 327,026, filed Oct. 3, 2001, and Appl. No. 60 / 362,314, filed Mar. 5, 2002. The entire disclosures of the aforesaid applications are hereby incorporated by reference.BACKGROUND OF THE INVENTION[0002]The present invention relates generally to financial transactions including a method for a borrower to evaluate and / or obtain financing, e.g., a loan or a credit card.[0003]Shopping for financing (e.g., a loan, such as a mortgage) can be a complicated time-consuming process. The mortgage industry has been slow to empower borrowers in order to save them time, make their lives easier, and help them determine their best loan options. Because of this, b...

AI Technical Summary

Benefits of technology

"The present invention is a system and method for reducing predatory lending when a borrower seeks financing. It involves obtaining personal information and loan evaluation information based on the borrower's reasons for needing financing and the same criteria used by established financial institutions. A credit grading is determined for the borrower based on objective criteria, and this information is provided to the borrower to help them evaluate their financing options. The credit grading information may also be provided to financial institutions to help them decide whether to provide financing to the borrower. The information is preferably handled in a confidential manner and not disclosed unless authorized by the borrower. The technical effect of this invention is to provide a more efficient and effective way of evaluating and reducing predatory lending, which can protect the borrower from unfair or unscrupulous lending practices."

Problems solved by technology

Shopping for financing (e.g., a loan, such as a mortgage) can be a complicated time-consuming process.

The mortgage industry has been slow to empower borrowers in order to save them time, make their lives easier, and help them determine their best loan options.

Because of this, borrowers, and in particular, credit-impaired borrowers, are often overcharged.

Predatory lending is a very difficult and challenging problem to recognize in practice as many lenders may use procedures that conceal the nature of the predatory practices.

It is very time consuming for a borrower to investigate each of the potential lenders.

Furthermore, each prospective lender typically runs a credit report on the borrower, causing there to be multiple inquiries on the borrower's credit report.

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