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US 2006/0218079 A1Published application
Web-based consumer loan database with automated controls for preventing predatory lending practices
OwnerJoel Goldblatt, William Nadalinventors
Life of this patent
Estimating the term…
Abstract
A web based, interactive and collaborative software intelligence tool that tracks the patterns of behavior of mortgage originators, lenders, and others involved in the lending process and automatically identifies instances of non-compliance or potentially fraudulent activities or patterns of conduct that are deemed either deceptive to the borrower or anti-consumer by government agencies charged with oversight of the lending industry.
Claims15
A method for detecting consumer fraud and predatory lending practices to be utilized by a regulatory entity comprising the steps of:
- a. providing a secure repository of data records accessible by participating entities over a plurality of secure communications pathway;
- b. collecting predetermined data and information about borrower/applicants and loan parameters from each participating entity in sequence including loan originators, credit counselors, title insurers and loan closing agents;
- c. determining whether the data and information collected is within the scope of and meets federal or state statutory and regulatory guidelines, or other local laws, pertaining to the sale and acquisition of real property;
- d. determining whether a borrower/applicant understands the terms and conditions associated with the loan and is capable of meeting the debt obligation;
- e. determining whether the borrower/applicant requires credit counseling and providing notice to the borrower/applicant and referral to a credit counselor;
- f. providing the regulatory entity with real-time loan application information pertaining to all loans originated by licensees including mortgage brokers, loan originators, or other lending institutions;
- g. providing participating entities with real-time access to the secure repository of data records over secure communications pathways to act upon loan applications that require credit counseling to the borrower/applicant;
- h. providing a certification at the closing stage of the loan that compliance with all statutory and regulatory guidelines have been met, all data and information required has been entered in the secure repository, and by which participating entity;
- and,
- i. determining whether any of the participating entities does not meet the statutory or regulatory guidelines pertaining to the sale and acquisition of real property.
7 more elements
A method for regulatory agency workflow management to alert a regulating entity of a detected predatory lending practice or pattern or fraudulent activity of a participating entity comprising the steps of:
- a. providing a workflow for a regulating entity containing a list of borrower/applicants meeting “out of bound” conditions including, but not limited to, high cost home loans, vulnerable geographic locales identified by zip codes, below a predefined credit score rating, poor debt-to-income ratio, appraised property value exceeding the neighboring property values by a predetermined percentage, equity percentage below predetermined percentage, mortgage value to equity value ratio exceeding a predetermined percentage, loans with unexplained related product sales, income range type, home repair, debt consolidation, etc.;
- b. providing 360 degree visibility to the regulating entity through a dashboard to view statistical data (%, high, median, low, standard deviation), grouped by a number of selectable factors including, but not limited to:
- i. loan rates;
- ii. mortgage loan amounts;
- iii. equity loan amount/percentages;
- iv. property appraisal amounts;
- v. cost of property;
- vi. total cost of credit including points and fees assessed;
- vii. sales of additional products such as insurance.
- c. providing the regulating entity with the ability to acquire information to make determinations by the grouping and combination of factors with “the touch of a button” functionality with such factors selectable from the following list:
- i. loan application status;
- ii. zip codes;
- iii. loan amounts;
- iv. credit scores;
- v. equity value;
- vi. income level;
- vii. interest rate;
- viii. loan types;
- ix. special loan terms.
- d. providing participating financial institutions' statistics including summary, comparative, and variance information of closed loans, amounts, and rates within a user-defined time frame, and a specific area or range of areas;
- e. providing summary, comparative and variance information of number of homes in foreclosure based on a user-defined time frame, rolling forward periods, zip codes, credit risk, income level;
- f. providing loan originator information of loan types and data regarding where and types of loans originated and with whom;
- g. providing regulating entity with ability to view data grouped by time frame;
- group/data comparison;
- summary;
- detail;
- statistical information, graphs/charts and other user defined criteria to easily detect a pattern of predatory lending.
24 more elements
Dependencies are inferred from the claim text.