Patent ID: 7310618
Filing Date: 2007-12-18
Classification: G06Q

Abstract:
1. A method comprising: (a) obtaining a first payment history, a first Loan-to-Value (“LTV”). a first credit rating, and at least one add-on loan factor for a particular borrower of a loan, and a set of historic loan data comprising records having historic payment histories, historic LTVs, historic credit ratings, and at least one historic add on loan factor; (b) separating the records of historic loan data into a first pool based on the absence of the at least one historic add-on factor; (c) grouping the first pool into groups based on the historic payment histories, the historic LTVs, and the historic credit ratings; (d) determining a first probability of delinquency for the particular borrower by calculating a first incidence of delinquency of one group of the first pool; (e) separating the records of historic loan data into a second pool based on whether the records contain the at least one historic add-on factor; (f) grouping the second pool into sub-pools based on the at least one historic add-on factor; (g) determining a second probability of delinquency for the particular borrower by calculating a second incidence of delinquency of one subpool of the second pool; and (h) combining the first probability of delinquency with the second probability of delinquency to determine the total probability of delinquency for the particular borrower.