Patent ID: 7873569
Filing Date: 2011-01-18
Classification: G06Q

Abstract:
1. A method of creating a loan agreement document by conducting a loan auction over the Internet between individual borrowers and individual lenders through a third party loan auction service provider transforming a loan application form into an executed loan agreement, the method comprising the steps of: a) establishing a plurality of authenticated individual lenders, with each individual lender forming a web-based escrow account for bidding, the escrow held by the third party loan auction service provider; b) preparing a web-based loan application for an individual borrower, including personal identifying information and financial information including desired loan amount, and including credit report information to create an original loan application document, the original loan application document stored within a first computer database controlled by the third party loan auction service provider; c) anonymizing, within a computer controlled by the third party loan auction service provider, the web-based original loan application document by replacing the personal identifying information with placeholding information known and controlled by the third party loan auction service, the anonymized loan application document stored within a second computer database controlled by the third party loan auction service provider and linked to the original loan application document stored in the first computer database; d) presenting the anonymized loan application on the third party loan auction service provider web site created by a computer controlled by the third party loan auction service provider for viewing by the plurality of authenticated individual lenders, as well as a set of digital signatures associated with the original documents; e) creating a loan auction form on the computer controlled by the third party loan auction service provider, listing the placing holding information and financial information; f) publishing the loan auction form on the third party loan auction service website for viewing by the plurality of authenticated individual lenders; g) performing a loan auction for a predetermined period of time, wherein one or more lenders from the plurality of authenticated individual lenders offers any portion of the desired loan amount, at separate interest rates determined by the offering individual lenders by entering the offered portion, with identifying lender information, in the loan auction form; h) closing the auction at a predetermined time, or when the complete loan amount has been taken by one or more authenticated individual lenders, each individual lender associated with a portion of the total loan amount; i) sending the original loan application documents to the offering individual lenders for authentication against the digital signatures; j) transforming within the computer controlled by the third party loan auction service provider, the original loan application document into: 1) a single loan agreement between the individual borrower and the third party loan auction service provider and 2) a plurality of loan agreements between the third party loan auction service provider and each offering individual lender from the plurality of authenticated individual lenders.