Point-of-Sale Loan Underwriting for Multi-Lender Offer Matching
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Solution Overview
Problem
Consumer loan origination processes are lengthy and inefficient due to manual processing by lenders, leading to high costs and negative impacts on consumer credit worthiness, especially when applying to multiple lenders for comparison.
Innovation Solution
An automated loan production system that enables real-time processing through a point-of-sale platform, verifying merchant and consumer applications, underwriting, and presenting loan offers from multiple lenders, with fraud detection and soft/hard credit pulls, facilitating seamless funding and reporting.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual processing of loan applications is used, then lenders can review applications in detail, but the process becomes time-consuming and expensive
Solution Approach 1:
The patent replaces manual mechanical processing with automated computer-based underwriting systems that use algorithms to evaluate loan applications, credit reports, and borrower information, eliminating the need for manual review while maintaining decision quality
Solution Approach 2:
The system enables self-service through automated decision-making where the underwriting system independently evaluates applications without human intervention, allowing rapid processing while maintaining consistent evaluation standards
2Adaptability or versatility
If consumers apply to multiple lenders for comparison, then they can find the best loan terms, but the costs increase and credit worthiness is negatively impacted
Solution Approach 1:
The patent introduces a broker as an intermediary who consolidates multiple loan applications into a single submission process, allowing consumers to compare offers from multiple lenders without repeatedly querying their credit, thus reducing credit score impacts
Solution Approach 2:
The system performs preliminary soft credit pulls during the application review process before final loan decisions are made, allowing lenders to assess creditworthiness in advance without impacting the consumer's credit score, enabling multiple comparison attempts
3Productivity
If automated processing is implemented, then processing speed increases, but system complexity increases
Solution Approach 1:
The patent implements a universal automated underwriting platform that handles multiple loan types and borrower scenarios through a single integrated system, reducing overall complexity despite the automated processing capability
Solution Approach 2:
The system manages complexity by dynamically adjusting processing parameters and thresholds based on borrower profiles and loan types, allowing standardized automated processing while adapting to different scenarios without requiring complex custom logic for each case
Data Source
AI summary
Automated loan production systems, methods, and media are provided. For example, the disclosed subject matter can provide a point-of-sale platform that sources the borrower, captures the borrower's information in the form of a consumer loan application at a point-of-sale, underwrites the borrower based on criteria provided by lending partners, underwrites one or more merchants for inclusion on the point-of-sale platform, matches multiple loan offers from multiple lending partners based on borrower and lender requirements, presents loan documents of a selected loan for electronic signature between the merchant and the borrower, disburses funds from the lender to the merchant, and provides reporting to merchants, partners, lenders, and other entities through respective portals.