Consolidated Loan Product Normalization System
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Solution Overview
Problem
The complexity of various loan products for home purchases can lead potential borrowers to select less than optimal loan products, increasing the costs of home purchases due to confusing eligibility requirements.
Innovation Solution
A method and system that normalize multiple loan products into a consolidated loan product, facilitating its origination and determining the best fit among available loan products, thereby simplifying the selection process for borrowers and efficiently processing loan requests.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple loan products with different eligibility requirements are presented to borrowers, then borrowers have more loan options, but the complexity and confusion of eligibility requirements increases
Solution Approach 1:
The patent segments the complex eligibility requirements into standardized, normalized criteria categories (e.g., credit score ranges, debt-to-income ratios, down payment percentages). By breaking down the complex eligibility framework into discrete, standardized segments, the system maintains multiple loan options while making the eligibility criteria more manageable and easier to communicate to borrowers.
Solution Approach 2:
The patent introduces a loan product normalization layer that acts as an intermediary between the diverse loan products and the borrower. This normalization layer translates various loan product eligibility requirements into a unified set of standardized criteria, thereby preserving loan versatility while reducing the complexity perceived by borrowers.
2Reliability
If detailed eligibility requirements are provided for each loan product, then borrowers can make informed decisions, but the selection process becomes more complex and time-consuming
Solution Approach 1:
The patent performs preliminary normalization of eligibility requirements before the borrower makes a selection. By pre-processing and standardizing the eligibility criteria across all loan products, the system enables borrowers to make informed decisions based on clear, comparable criteria rather than having to navigate complex, product-specific requirements, thereby reducing selection time.
Solution Approach 2:
The patent changes the parameters of eligibility requirements from product-specific, complex criteria to standardized, normalized parameters. This parameter transformation allows borrowers to evaluate multiple loan products using a consistent framework, making the selection process faster and more straightforward while maintaining the ability to make informed decisions.
3Quantity of substance
If loan products are presented in their original detailed format, then all loan information is available, but processing and comparing loans becomes less efficient
Solution Approach 1:
The patent merges the eligibility requirements from multiple diverse loan products into a unified, normalized set of criteria. This consolidation maintains the comprehensive information needed for informed decision-making while significantly improving processing efficiency, as the standardized format allows for automated comparison and evaluation of loans across different products.
Solution Approach 2:
The patent creates a universal normalized format that serves multiple functions: it provides complete loan information availability, enables efficient automated processing, facilitates easy comparison across products, and simplifies communication with borrowers. This multi-functional approach resolves the contradiction between information completeness and processing efficiency.
Data Source
AI summary
An example method for facilitating a home mortgage includes: normalizing a plurality of loan products into a consolidated loan product; originating the consolidated loan product for a home purchaser; after origination of the consolidated loan product, determining a best fit for the consolidated loan product from among the plurality of loan products; and transferring the consolidated loan product to an entity associated with the best fit from the plurality of loan products.