Centralized Account Verification System for Mortgage Underwriting

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Solution Overview

Problem

Current methods for locating and verifying account balances across multiple institutions are time-consuming and prone to errors, especially when applicants have accounts at different financial institutions, and there is a need for efficient systems to access account information for mortgage applications, government benefits, and law enforcement purposes.

Innovation Solution

A system and method that utilizes a database to store account data from multiple institutions, allowing for the automatic location and verification of accounts using personal identifiers, and provides a report on account assets and deposit patterns, while also linking data from various sources for risk assessment and fraud detection.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual look-up methods are used to verify account balances at multiple institutions, then each institution can conduct individual verification, but the process becomes time-consuming and labor-intensive

Engineering Contradiction:

Improveaccount verification accuracyVSAvoidverification time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent merges multiple individual institution verification processes into a single centralized database system that consolidates account information from multiple financial institutions, allowing simultaneous verification across all institutions through one automated query rather than sequential manual look-ups

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The patent replaces the mechanical manual look-up process with an automated electronic system that uses computer algorithms to match personal identifiers with account data in a centralized database, eliminating manual intervention and significantly reducing verification time

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If applicants provide incomplete account information or incorrect bank details, then the verification process becomes more difficult, but manual methods require multiple follow-up requests increasing time and cost

Engineering Contradiction:

Improveaccount information provisionVSAvoidfollow-up verification time

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The system enables self-service verification where the automated database search and matching processes can handle incomplete or imperfect applicant information independently, using algorithmic matching to identify accounts even when applicants provide partial details, eliminating the need for manual follow-up requests

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The system implements feedback mechanisms where the automated verification process provides real-time results and error notifications to applicants, allowing immediate correction of incomplete information without requiring manual intervention from verification officers

Inventive Principle:

Principle #23Feedback

3Reliability

If a shotgun approach is used to deliver subpoenas to many institutions, then law enforcement agencies may find accounts, but institutions waste significant resources responding to unsubstantiated requests

Engineering Contradiction:

Improvesubpoena execution effectivenessVSAvoidinstitution resource consumption

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The patent performs preliminary actions by pre-processing and organizing account data in a centralized database with standardized personal identifiers, enabling law enforcement agencies to conduct preliminary searches before issuing subpoenas, thereby identifying which institutions actually hold accounts of interest and avoiding wasteful distribution of subpoenas to unrelated institutions

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The centralized database system serves multiple functions simultaneously: it acts as a verification system for lenders, a search tool for law enforcement, and a resource optimization platform that prevents wasteful subpoena distribution, thereby reducing overall system energy consumption while maintaining effective account location capabilities

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS10607284B2System and method to search and verify borrower information using banking and investment account data and process to systematically share information with lenders and government sponsored agencies for underwriting and securitization phases of the lending cycle

Publication Date: 2020.03.31 EARLY WARNING SERVICES LLC

AI summary

Account data (e.g., balance information) for accounts at a plurality of financial institutions (or government agencies) is stored (and updated) in a central database system and accessed using a personal identifier, such as a social security number. Risk data may be generated for accounts based on the account data. The account data and risk data are accessed in response to either an account search request (e.g., from a government entity and relating to a benefits program or a subpoena) or an account verification request (e.g. from a mortgage company and relating to a mortgage application).