Credit risk managing loan pools

1. A computer system for determining a probability of loss for a loan comprising:

a computer in communication with a database storing data for the loan, the computer configured to:

assign a base probability of loss factor to the loan, the base probability of loss factor for a loan with base characteristics including a loan to value ratio of between 75 and 80, a loan for a primary residence, a prime credit loan, and a loan not associated with a bankruptcy proceeding;

search the database to obtain at least one characteristic of the loan different from the base characteristics;

based on the at least one characteristic of the loan different from the base characteristics, obtain at least one loss probability factor associated with the loan, wherein the at least one loss probability factor accounts for the at least one characteristic of the loan; and

sum the at least one loss probability factor with the base probability of loss factor, wherein the summation yields the probability of loss for the loan.

2. The computer system of claim 1 wherein the at least one characteristic of the loan includes a delinquency status of the loan; and

wherein the computer is configured to search the database to obtain a first probability factor to account for the delinquency status of the loan, wherein the first probability factor is one of the at least one loss probability factors.

3. The computer system of claim 2 wherein the delinquency status of the loan includes current, 30 days delinquent, 60 days delinquent, 90 days delinquent, first month of foreclosure proceedings, more than one month after the start of foreclosure proceedings, real estate owned, and realized loss; and

wherein the computer is further configured to:

set the first probability factor to one if the delinquency status of the loan is current;

set the first probability factor to five if the delinquency status of the loan is 30 days delinquent;

set the first probability factor to 10 if the delinquency status of the loan is 60 days delinquent;

set the first probability factor to 15 if the delinquency status of the loan is 90 days delinquent;

set the first probability factor to 20 if the delinquency status of the loan is in the first month of foreclosure proceedings;

set the first probability factor to 30 if the delinquency status of the loan is more than one month after the start of foreclosure proceedings;

set the first probability factor to 99 if the delinquency status of the loan is real estate owned; and

set the first probability factor to 100 if the delinquency status of the loan is a realized loss.

4. The computer system of claim 1 wherein the at least one characteristic of the loan includes a current loan to value ratio for the loan; and

wherein the computer is configured to obtain a second probability factor to account for the current loan to value ratio for the loan.

5. The computer system of claim 4 wherein the computer is configured to:

set the second probability factor to −50 if the current loan to value ratio for the loan is less than 50;

set the second probability factor to zero if the current loan to value ratio for the loan is between 50 and 75;

set the second probability factor to 10 if the current loan to value ratio for the loan is between 75 and 100; and

set the second probability factor to 25 if the current loan to value ratio for the loan is greater than 100.

6. The computer system of claim 1 wherein the at least one characteristic of the loan includes a loan type, and wherein the computer is configured to obtain a third probability factor to account for the loan type.

7. The computer system of claim 6 wherein the computer is configured to:

set the third probability factor to 15 if the loan type is a subprime loan; and

set the third probability factor to 5 if the loan type is an alternative credit loan.

8. The computer system of claim 1 wherein the at least one characteristic of the loan includes a type of property, and wherein the computer is configured to obtain a fourth probability factor to account for the type of property.

9. The computer system of claim 8 wherein the computer is configured to:

set the fourth probability factor to negative five if the type of property is a second home; and

set the fourth probability factor to five if the type of property is an investment property.

10. The computer system of claim 1 wherein the at least one characteristic of the loan includes a bankruptcy proceeding; and

computer is configured to obtain a fifth probability factor to account for the bankruptcy proceeding.

11. The computer system of claim 10 wherein the computer is configured to:

set the fifth probability factor to ten if the bankruptcy proceeding is a chapter thirteen bankruptcy proceeding.

12. The computer system of claim 1 wherein the at least one characteristic of the loan includes a low document loan, a FICO loan, and a property issue, and wherein the computer is configured to:

set the sixth probability factor to five for the low document loan;

set the sixth probability factor to ten for the FICO loan; and

set the sixth probability factor to 25 for the property issue.

13. The computer system of claim 1 wherein the at least one characteristic of the loan includes an early payment default; and

wherein the computer is configured to obtain a seventh probability factor to account for the early payment default.

14. The computer system of claim 13 wherein the early payment default includes a first payment default, a payment default within the first three payments on a loan wherein the computer is configured to:

set the seventh probability factor to 15 for the first payment default; and

set the seventh probability factor to five for the payment default within the first three payments on a loan.

15. The computer system of claim 1 wherein the computer is configured to obtain an eighth probability factor to account for the financing of the loan.

16. The computer system of claim 15 wherein the financing of the loan includes a cash-out refinancing, an equity refinancing, and a purchase money loan; and wherein the computer is configured to:

set the eighth probability factor to five for the cash-out refinancing;

set the eighth probability factor to 2.5 for the equity refinancing; and

set the eighth probability factor to negative five for the purchase money loan.

17. The computer system of claim 1 wherein the at least one characteristic of the loan includes an exception in the underwriting process, and wherein the computer is configured to obtain a ninth probability factor to account for the exception in the underwriting process.

18. The computer system of claim 17 wherein the computer is configured to:

set the ninth probability factor to ten if there are underwriting exceptions; and

set the ninth probability factor to negative five if there are no underwriting exceptions.