LLM Virtual Assistant for Mortgage Loan Origination

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Solution Overview

Problem

Conventional loan origination processes are complex and cumbersome, overwhelming borrowers with technical terms and requiring extensive time and resources, leading to a burdensome experience despite assistance from informed loan officers.

Innovation Solution

An interactive virtual assistant that combines rules-based responses with a language model to provide context-aware guidance, offering user-friendly explanations and personalized recommendations, thereby simplifying the loan process and reducing the need for extensive research or interactions with multiple loan officers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If conventional loan origination processes are used with multiple loan officers and manual procedures, then personalized service and complex financial verification can be provided, but the process becomes complex and cumbersome, overwhelming borrowers with technical terms and requiring extensive time

Engineering Contradiction:

Improveease of loan application processVSAvoidcomplexity of loan processing system

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent introduces a virtual assistant as an intermediary between borrowers and the loan origination system. This virtual assistant handles borrower inquiries, guides them through the application process, and translates complex financial terminology into understandable language, thereby reducing the perceived complexity for borrowers while maintaining the necessary verification processes

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The loan origination process is segmented into distinct modules and tasks that can be independently managed. The system breaks down the complex process into smaller, manageable steps such as document collection, verification, underwriting, and closing, allowing borrowers to progress through each segment sequentially rather than being overwhelmed by the entire process at once

Inventive Principle:

Principle #1Segmentation

2Reliability

If multiple loan officers and manual verification processes are used, then thorough financial data verification can be achieved, but the process consumes valuable time and resources

Engineering Contradiction:

Improveaccuracy of financial verificationVSAvoidtime required for loan processing

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system enables self-service capabilities where borrowers can independently complete application steps, upload required documents, and track their application status without constant intervention from loan officers. Automated verification processes also perform checks independently, reducing the time borrowers spend waiting for manual reviews while maintaining verification accuracy

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

Manual mechanical processes such as document verification, credit checks, and data validation are replaced with automated electronic systems. The patent implements automated document verification, electronic credit bureau access, and algorithm-based underwriting decisions that perform thorough verification much faster than manual processes

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Adaptability or versatility

If loan officers provide personalized guidance through complex loan options, then borrowers receive informed assistance, but the process introduces variability of personal judgment and subjective experience that may create bias

Engineering Contradiction:

Improvepersonalization of loan recommendationsVSAvoidvariability in processing standards

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The system uses configurable parameters and rules that can be adjusted to provide personalized recommendations while maintaining consistency. Loan products have defined parameters such as interest rates, terms, and eligibility criteria that can be dynamically matched to borrower profiles based on their financial situation, ensuring personalized yet standardized decision-making

Inventive Principle:

Principle #35Parameter changes

Solution Approach 2:

The system incorporates feedback loops where borrower responses and financial data are continuously analyzed to refine recommendations. The virtual assistant learns from borrower interactions and adjusts guidance based on individual circumstances, while the underlying decision engine maintains consistent application of underwriting criteria through automated feedback mechanisms

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS20250078150A1Loan origination systems and methods using large language model (LLM)-based virtual assistants and task libraries

Publication Date: 2025.03.06 TIDALWAVE TECH INC

AI summary

Described herein are systems and methods that take advantage of a self-servicing mortgage engine that utilizes a language-model-based virtual assistant with access to knowledge databases, loan product databases, and underwriting databases. The mortgage engine integrates rules-based responses with the language model to analyze user input from conversations and provide context-aware interactive guidance, e.g., in the form of easy-to-understand explanations, instructions, and suggestions tailored to user questions. The interactive guidance generates recommendations and actionable outputs for borrowers that reduce the complexities of the lending process and drives the loan application. Advantageously, this increase efficiency and transparency to the borrower, while simultaneously reducing costs to lenders.