News Column

"Versatile User Interface System for Loan Processing" in Patent Application Approval Process

June 12, 2014



By a News Reporter-Staff News Editor at Politics & Government Week -- A patent application by the inventor Baca, Louis Lee Michael (Murphy, TX), filed on November 1, 2013, was made available online on May 29, 2014, according to news reporting originating from Washington, D.C., by VerticalNews correspondents.

This patent application has not been assigned to a company or institution.

The following quote was obtained by the news editors from the background information supplied by the inventors: "A fall 2012 study by the Competitive Enterprise Institute, aptly titled Tip of the

"Costberg, estimated that the total unreported cost of all government regulations, not just those affecting the mortgage industry, could be as high $1.8 trillion. Closer to home, the House Financial Services Committee recently estimated that the U.S. financial sector is already spending over 24 million man hours per year complying with Dodd-Frank-that is four million man hours longer than it took to build the entire Panama Canal. For mortgage lenders, federal rules are only part of the challenge: state and local regulations are also increasing. Taken together, there are approximately 350 different federal, state and local rules that could apply to a specific loan, depending on where it is originated according to Cheryl Hemingway, compliance solution specialist at Ellie Mae. No wonder that the average cost of originating a mortgage has climbed to over $3,000 in the third quarter of 2012, according to the Mortgage Bankers Association (MBA). And that's before the slew of new acronyms-OM, ORM and UDAAP-that could potentially transform our industry are actually spelled out or start taking effect. This paper will examine some of the more subtle ways the ever-increasing regulatory burden is translating into higher costs and risks for banks, community bankers, mortgage bankers and credit unions, as well as some of the steps they can take to reduce their costs of compliance and exposure.

"Some of the costs of compliance are relatively easy to calculate: salaries for compliance officers; legal fees; or compliance software. Additionally, there are substantial costs for non-compliance such as fines, penalties, or forfeiture of interest and fees on a loan. Such costs do not comprehend the cost of defending a lawsuit or even a class-action lawsuit, rate-locks that were mishandled, loans that are put back and cannot be resold, or other good will damage. Most such costs cannot be passed on to the borrower, and result in significant profit losses.

"Further complicating matters for lenders is the emerging trend of stricter, zero-tolerance regulations and the way that they are being interpreted and enforced. In certain instances, it is possible that certain errors--once considered clerical and minor--are now considered incurable. Over the next few years, many state-licensed lenders will need to review and adjust their procedures and systems to comply with changes in state regulations that will be driven by new federal rules. That is because many, if not most, state consumer credit and high-cost loan laws point to federal laws, usually for purposes of determining inclusion/exclusion list fees. This task will be potentially time consuming and expensive. For example, a certain state high-cost law will refer to a section of federal law, but it will not reference it except to say, 'As amended.' Depending on how the state rule was drafted, the lender may be precluded from using the federally mandated fee tests and following one methodology. This is going to be true for almost every fee test as state laws are not limited to just one fee test

"Over the next few years, many state-licensed lenders will need to review and adjust their procedures and systems to comply with changes in state regulations that will be driven by new federal rules. That is because many, if not most, state consumer credit and high-cost loan laws point to federal laws, usually for purposes of determining inclusion/exclusion list fees. This task will be potentially time consuming and expensive.

"As a result, inaccurate data can prompt exceptions or violations, regardless of whether they exist or not in the actual loan files. A lender may be forced to go back into actual loan files and defend itself against a fine, or explain why an exception should not be applied. Ongoing data testing and scrubbing is becoming more important. This is complicated when a lender has their data spread over multiple systems--loan origination data on one system; closing documents on a vendor's system, etc. This makes identification and reporting more time-consuming, and increases the need to reconcile data.

"Certain automated compliance systems exist--but they do not obviate the need to have trained compliance experts in an organization or have knowledgeable outside counsel. A number of other automated systems--such as application systems, appraisal systems, and loan comparison tools--do exist, but those systems are not fully integrated and automated. As such, they still require a high level of manual interface with, and management by, lending personnel; over and above what is minimally required by laws and regulations.

"As a result, there is a need for a system of structures and methods that addresses the shortcomings of existing mortgage processing systems and programs--maximizing automation, compliance and efficiency while minimizing data errors, documentation errors and manual management by lending personnel."

In addition to the background information obtained for this patent application, VerticalNews journalists also obtained the inventor's summary information for this patent application: "The present invention provides a versatile system, comprising various constructs and methods, processing mortgages in a convenient, easy and economical manner. The system of the present disclosure provides an operational kernel that consolidates all aspects of mortgage application, processing, underwriting, and approval.

"Specifically, the system of the present invention provides various structures and methods for consolidating all aspects of mortgage application, handling, administration and approval processes within a unified operational environment. In particular, the present invention provides a highly versatile user interface that enables applicants for a loan to efficiently enter and review application data, and interatively alter and analyze the data based upon desired loan characteristics and/or other user-specific data Operational portals to external data sources are automated. Applicant interfaces and notification systems are also automated, and operational feedback systems provide the ability to update and/or modify the loan application as information is added or compiled.

"More specifically, the system of the present disclosure provides various structures, including operational modules and interfaces, and methods of providing a user interface system for mortgage application processing. The user interface system of the present invention comprises a module operable to input applicant goals, a module operable to determine available options to an applicant, and a module operable to compare the available options to the applicant goals. A module operable to identify one or more available options for presentation to the applicant via a user interface is provided, as is a module operable to generate the user interface. The present invention further comprises a module operable to prompt identification of a preferred option, and may further prompt for input of user background information.

"Other features and advantages of the present invention will be apparent to those of ordinary skill in the art upon reference to the following detailed description taken in conjunction with the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

"For a better understanding of the invention, and to show by way of example how the same may be carried into effect, reference is now made to the detailed description of the invention along with the accompanying figures in which corresponding numerals in the different figures refer to corresponding parts and in which:

"FIG. 1 provides an illustration depicting a network wherein the teachings of the present disclosure may be employed;

"FIG. 2 provides an illustration depicting certain operational elements of the present disclosure and their relationships to one another;

"FIG. 3 provides an illustration depicting one embodiment of the loan application process of the present disclosure;

"FIG. 4 provides an illustration depicting certain operational engines of the present disclosure and their connections to a central database and to one another;

"FIG. 5 provides an illustration depicting certain aspects of the application engine;

"FIG. 6 provides an illustration depicting certain aspects of a research engine;

"FIG. 7 provides an illustration depicting certain aspects of a regulatory engine;

"FIG. 8 provides an illustration depicting certain aspects of a compilation engine;

"FIG. 9 provides an illustration depicting certain aspects of an underwriting engine;

"FIG. 10 provides an illustration depicting certain aspects of a title engine;

"FIG. 11 provides an illustration depicting certain aspects of a closing engine;

"FIG. 12 provides an illustration depicting certain aspects of a notifications engine;

"FIG. 13 provides an illustration depicting certain aspects of an administration engine;

"FIG. 14 provides an illustration depicting certain aspects of a processing engine;

"FIG. 15 provides an illustration depicting an interface for an initiation engine;

"FIG. 16 provides an illustration depicting a goals interface;

"FIG. 17 provides an illustration depicting a preliminary application interface;

"FIG. 18 provides an illustration depicting a process flow for loan filtering;

"FIG. 19 provides an illustration depicting a loan comparison interface;

"FIG. 20 provides an illustration depicting an account creation interface;

"FIG. 21 provides an illustration depicting a full application interface;

"FIG. 22 provides an illustration depicting a process of applicant screening;

"FIG. 23 provides an illustration depicting a credit pull interface;

"FIG. 24 provides an illustration depicting a disclosures interface;

"FIG. 25 provides an illustration depicting an employment verification interface;

"FIG. 26 provides an illustration depicting an asset verification interface;"

URL and more information on this patent application, see: Baca, Louis Lee Michael. Versatile User Interface System for Loan Processing. Filed November 1, 2013 and posted May 29, 2014. Patent URL: http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.html&r=792&p=16&f=G&l=50&d=PG01&S1=20140522.PD.&OS=PD/20140522&RS=PD/20140522

Keywords for this news article include: Patents, Mortgage, Real Estate, Legal Issues.

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Source: Politics & Government Week


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