System, method and computer program product for determining loan purchase eligibility
View Patent ↗A system, method and computer program product for determining purchase eligibility of a financial product; including, classifying the financial product according to an ontological model into one or more classification types, assigning a marker to each classification type corresponding to the attributes of the financial product, and applying decision one or more rules to the financial product to determine whether the financial product is eligible or ineligible for purchase or participation.
1. A method for determining the purchase eligibility of a financial product such as a loan, the method implemented by a financial product processing device, the method comprising:
electronically receiving in a processor of the financial product processing device a data representation of the loan, said data representation containing a plurality of attributes;
electronically classifying in the processor of the financial product processing device the data representation of the loan according to an ontological model into one or more classification types, wherein the ontological model represents a hierarchical organization of a plurality of classification types and each classification type corresponds to one or more of the attributes of the data representation and represents a term of business in a master agreement or a negotiated agreement;
electronically assigning in the processor of the financial product processing device a marker to each of the identified classification types, wherein each marker indicates whether the loan meets an allowed value or range corresponding to the attributes represented by the classification type, the allowed value or range being defined in the master agreement or the negotiated agreement;
electronically applying one or more decision rules in the processor of the financial product processing device, each having at least one condition to the assigned markers to identify the loan as eligible for purchase when the markers meet the conditions of the decision rules; and
associating and storing the classification types, terms of business associated with an investment decision for the loan, and criteria used to determine eligibility or ineligibility for the loan, with a record of the loan.
2. The method of claim 1 , further comprising the step of:
electronically identifying a loan as eligible for purchase when the markers meet the conditions of the decision rules.
3. The method of claim 1 , further comprising the step of:
electronically associating, with the loan, the terms of business of a master agreement or a negotiated agreement with which the attributes of the loan were compared.
4. The method of claim 1 , further comprising the step of:
electronically marking the loan as ineligible for purchase when the markers do not meet the conditions of the decisions rules.
5. The method of claim 4 , further comprising the step of:
electronically comparing the classification type or attributes of the loan with a secondary set of criteria for an ineligible loan type.
6. The method of claim 1 , further comprising the step of:
electronically comparing the eligible loan with one or more additional criteria.
7. The method of claim 6 , wherein the additional criteria are not a component of the data representation, attributes or the classification type of the eligible loan.
8. The method of claim 1 , wherein the classification types include a bond, an asset-backed security, and an unsecured loan.
9. The method of claim 1 , wherein the plurality of attributes include a loan to value ratio and mortgage insurance.
10. The method of claim 1 , wherein after the data representation of the loan is received, the financial product processing device checks whether the data representation is complete, and if it is determined that the data representation is incomplete, additional information may be added to the data representation.
11. The method of claim 10 , wherein when it is determined that the data representation is incomplete, preset data is provided for data that was missing from the data representation.
12. The method of claim 1 , wherein the marker is a pass/fail indicator.
13. The method of claim 1 , wherein the marker indicates that the financial product should be reviewed manually before a decision is made whether the financial product should be purchased.
14. The method of claim 1 , wherein the classification types for a particular loan or security are saved for future use, and the stored classification types can be modified based on modifications to the terms of business in the master agreement or the negotiated agreement.
15. The method of claim 1 , further comprising electronically tracing through the decision process to determine which eligibility criteria were used to determine the loan as eligible.
16. A non-transitory computer-readable medium having computer-readable instructions that when executed by a computer cause the computer to perform a method for determining the eligibility for purchase of a financial product such as a loan, comprising the steps of:
receiving a data representation of the loan, said data representation containing a plurality of attributes;
classifying the data representation of the loan according to an ontological model into one or more classification types, wherein the ontological model represents a hierarchical organization of a plurality of classification types and each classification type corresponds to one or more of the attributes of the data representation and represents a term of business in a master agreement or a negotiated agreement;
assigning a marker to each of the identified classification types, wherein each marker indicates whether the loan meets an allowed value or range corresponding to the attributes represented by the classification type, the allowed value or range being defined in the master agreement or the negotiated agreement;
applying one or more decision rules, each having at least one condition to the assigned markers to identify the loan as eligible for purchase when the markers meet the conditions of the decision rules; and
associating and storing the classification types, terms of business associated with an investment decision for the loan, and criteria used to determine eligibility or ineligibility for the loan, with a record of the loan.
17. A system for implementing a method for determining the eligibility for purchase of a financial product such as a loan, comprising:
a receiving unit configured to receive a data representation of the loan, said data representation containing a plurality of attributes;
a classifying unit configured to classify the data representation of the loan according to an ontological model into one or more classification types, wherein the ontological model represents a hierarchical organization of a plurality of classification types and each classification type corresponds to one or more of the attributes of the data representation and represents a term of business in a master agreement or a negotiated agreement;
an assigning unit configured to assign a marker to each of the identified classification types, wherein each marker indicates whether the loan meets an allowed value or range corresponding to the attributes represented by the classification type, the allowed value or range being defined in the master agreement or the negotiated agreement;
an applying unit configured to apply, via a processor, one or more decision rules, each having at least one condition to the assigned markers to identify the loan as eligible for purchase when the markers meet the conditions of the decision rules; and
a non-transitory storage device configured to associate and store the classification types, terms of business associated with an investment decision for the loan, and criteria used to determine eligibility or ineligibility for the loan, with a record of the loan.