Loan underwriting system and method
View Patent ↗An automated loan underwriting system and method automates the logic implemented by a loan underwriter, saving the loan originator time and money. Each lending institution can set up its own decisioning criteria, enabling customers to customize the process in which a proper evaluation, owners and encumbrance report, or title product is selected for a loan application within a given set of characteristics. The system and method allow for the automatic upgrading to another product without involvement of the loan processor, helping to reduce time delays in the loan origination process. The speed and automation allow for more underwriting checks to be applied against each loan.
1. A loan underwriting method comprising:
obtaining a lender's criteria for ordering valuation and title products, the criteria being related to the creditworthiness of a loan applicant,
defining a policy table cross referencing said criteria for ordering valuation and title products to actual valuation and title products, the policy table additionally referencing underwriting criteria including property location, loan amount, borrower risk tier and transaction level borrower and loan data;
storing said policy table in a memory device;
operating a workflow system comprising:
receiving orders for valuation and title products, each order including information about a borrower's transaction;
processing each order by automatically selecting a valuation or title product through reading said policy table from the memory device and comparing said information about a borrower's transaction to said underwriting criteria;
directly ordering the selected valuation or title product for processing; and
delivering the processed valuation or title product to the lender.
2. The loan underwriting method of claim 1 wherein the valuation products comprise a plurality of select automated valuation models (AVMs) and a cascaded AVM, wherein a cascaded AVM comprises a sequence of the select AVMs.
3. The loan underwriting method of claim 2 wherein operating the workflow system further comprises receiving results from a vendor of AVM products if the selected valuation product comprises a select AVM.
4. The loan underwriting method of claim 2 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value.
5. The loan underwriting method of claim 2 wherein defining the policy table further comprises assigning a select confidence score minimum to each of the select AVMs.
6. The loan underwriting method of claim 5 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value and a confidence score above the select confidence score minimum for the select AVM returning the automated property value.
7. The loan underwriting method of claim 1 wherein the actual valuation and title products further comprise upgrade products and wherein operating a workflow system further comprises automatically ordering upgrade products after comparing the processed valuation or title product and the information about a borrower's transaction to the underwriting criteria.
8. A loan underwriting method comprising:
obtaining a lender's criteria for ordering valuation products, the criteria being related to the creditworthiness of a loan applicant,
defining a policy table cross referencing said criteria for ordering valuation products to actual valuation products, and additionally referencing underwriting criteria, the valuation products comprising
a plurality of select automated valuation models (AVMs) and a cascaded AVM, the cascaded AVM comprising
a sequence of the select AVMs, the policy table assigning a select confidence score minimum to each of the select AVMs;
storing the policy table in a memory device;
operating a workflow system comprising
receiving orders for valuation and title products, each order including information about a borrower's transaction;
processing each order by automatically selecting a valuation product through reading said policy table from the memory device and comparing said information about a borrower's transaction to said underwriting criteria;
directly ordering the selected valuation product for processing; and
delivering the processed valuation or title product to the lender.
9. The loan underwriting method of claim 8 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value.
10. The loan underwriting method of claim 8 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value and a confidence score above the select confidence score minimum for the select AVM returning the automated property value.
11. The loan underwriting method of claim 8 wherein the actual valuation products further comprise upgrade products and wherein operating a workflow system further comprises automatically ordering upgrade products after comparing the processed valuation product and the information about a borrower's transaction to the underwriting criteria.
12. A loan underwriting method comprising:
obtaining a lender's criteria for ordering valuation and title products, the criteria being related to the creditworthiness of a loan applicant,
defining a policy table cross referencing said criteria for ordering valuation and title products to actual valuation and title products, the policy table additionally referencing select underwriting criteria;
storing the policy table in a memory device;
operating a workflow system comprising:
receiving orders for valuation and title products, each order including information about a borrower's transaction;
processing each order by automatically selecting a valuation or title product through reading said policy table from the memory device and comparing said information about a borrower's transaction to said underwriting criteria;
directly ordering the selected valuation or title product for processing;
automatically ordering upgrade valuation and title products after comparing the processed valuation or title product and the information about a borrower's transaction to the underwriting criteria; and
delivering the processed valuation or title product and upgrade products to the lender.
13. The loan underwriting method of claim 12 wherein the valuation products comprise a plurality of select automated valuation models (AVMs) and a cascaded AVM, wherein a cascaded AVM comprises a sequence of the select AVMs.
14. The loan underwriting method of claim 13 wherein operating the workflow system further comprises receiving results from a vendor of AVM products if the selected valuation product comprises a select AVM.
15. The loan underwriting method of claim 13 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value.
16. The loan underwriting method of claim 13 wherein defining the policy table further comprises assigning a select confidence score minimum to each of the select AVMs.
17. The loan underwriting method of claim 16 wherein operating the workflow system further comprises sequentially receiving results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value and a confidence score above the select confidence score minimum for the select AVM returning the automated property value.
18. A loan underwriting system comprising:
a database storing a policy table cross referencing a lender's criteria for ordering valuation and title products based on the creditworthiness of a loan applicant to actual valuation and title products, the policy table additionally referencing underwriting criteria including property location, loan amount, borrower risk tier and transaction level borrower and loan data;
a workflow processing system operatively associated with the database and programmed for:
receiving orders for valuation and title products, each order including information about a borrower's transaction;
processing each order by automatically selecting a valuation or title product through reading the policy table from the database and comparing said information about a borrower's transaction to underwriting criteria;
directly ordering the selected valuation or title product for processing; and
delivering the processed valuation or title product to the lender.
19. The loan underwriting system of claim 18 further comprising a network server operatively connected to the workflow processing system providing a user interface to the loan underwriting system.
20. The loan underwriting system of claim 18 further comprising a website server operatively connected to the workflow processing system providing a user interface to the loan underwriting system.
21. The loan underwriting system of claim 18 wherein the valuation products comprise a plurality of select automated valuation models (AVMs) and a cascaded AVM, wherein a cascaded AVM comprises a sequence of the select AVMs.
22. The loan underwriting system of claim 21 wherein the workflow processing system is further programmed to sequentially receive results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value.
23. The loan underwriting system of claim 21 wherein the policy table further comprises a select confidence score minimum assigned to each of the select AVMs.
24. The loan underwriting system of claim 23 wherein the workflow processing system is further programmed to sequentially receive results from vendors of AVM products if the selected valuation product comprises a cascaded AVM until one of the vendors returns an automated property value and a confidence score above the select confidence score minimum for the select AVM returning the automated property value.
25. The loan underwriting system of claim 18 wherein the valuation and title products further comprise upgrade products and wherein the workflow processing system is further programmed for automatically ordering upgrade products after comparing the processed valuation or title product and the information about a borrower's transaction to the underwriting criteria.