Abstract:
The invention relates to a method and a computer for coordinating an electronic credit application between an Internet user and a plurality of lending institutions via the Internet. This method involves displaying documents in a web site, and receiving credit data forming placed on the web site. After receiving this data a special loan processing computer applies a filter to the data. The filter comprises loan selection criteria provided by lending institutions which allows these institutions to filter out loan applications that they do not want. Next, after the data is filtered, it is transmitted to a plurality of lending institutions. Finally, the computer and the method then controls and coordinates communication between these lending institutions and the Internet user to match borrowers and lenders via the Internet.

Description:
BACKGROUND OF THE INVENTION  
         [0001]    1. The Field of the Invention  
           [0002]    The invention relates to a process for coordinating loans on a loan processing computer over the Internet. The Internet, a vast collection of computers world wide, is a relatively new medium for both personal and commercial entities to transact business. To conduct business over the Internet, companies must find ways to communicate with potential customers. The two most common forms of communication across the Internet are web pages, and e-mail.  
           [0003]    2. The Prior Art  
           [0004]    Various methods are known for presenting web pages over the Internet. For example, information about the Internet and web browsers can be found in U.S. Pat. No. 5,701,451 to Rogers et al., which is incorporated herein by reference. Rogers et al., details how requests of a web browser are processed. The Rogers invention speeds up the process for receiving requests from web browser users and retrieving the required information. U.S. Pat. No. 5,535,407 to Yanagawa et al., details a customer data processing system which is used to assist credit card purchases made in stores. The Yanagawa invention simplifies the way in which credit card purchases are verified at the time of checkout. U.S. Pat. No. 4,346,442 to Musmanno details a securities brokerage-cash management system. The Musmanno invention maintains customer brokerage accounts, charge cards and checking accounts and calculates available credit for purchases of securities.  
           [0005]    Until now, there has been no way to apply for credit from a multitude of lending institutions without physically going to or calling each lender and filling out an application. This process was tedious and time consuming. All applications required substantially the same information: name, address, occupation, debt, amount of loan, etc. This invention combines the vast resources and speed of the Internet with additional knowledge of various lending institution&#39;s selection criteria to create a simple mechanism whereby an Internet user can apply for credit from a multitude of lending institutions.  
         SUMMARY OF THE INVENTION  
         [0006]    To overcome these limitations, it is therefore an object of the present invention to provide a fast, convenient process to apply for credit from a large number of lending institutions. In accordance with our invention, needless repetitive applications are eliminated.  
           [0007]    It is a further object of the present invention to provide a universal credit application over the Internet and to allow the Internet user to submit a single credit application to a plurality of lending institutions who then make offers to the customer via the Internet.  
           [0008]    To achieve these and other objects of the invention, there is provided a method and apparatus for coordinating an electronic credit application between an Internet user and a plurality of lending institutions via the Internet. The method comprises the steps of displaying a plurality of documents to an Internet user, receiving a plurality of credit data sent from the Internet user; matching an electronic credit application to a filter comprising a plurality of selection criteria; transmitting the credit data to a plurality of lending institutions via one of four methods; and responding to the Internet user via the Internet. The documents sent to the Internet user includes a series of questions pertaining to their desired loan, followed by the appropriate type of loan application. The various types of loan applications include first and second mortgages, car loans, student loans, personal loans, and credit card applications. Other types of credit applications may exist without departing from the spirit of the invention. Upon completion of the application, the invention matches a unique filter to the credit data entered by the Internet user.  
           [0009]    The filter is made up of a plurality of selection criteria in which a specific lending institution has given to the inventor. The filter is customizable by the specific lending institution in real time and unique to each lending institution. Once the application has been filtered, it is sent to a list of lending institutions that match with the credit application. These lending institutions then reply as to whether the application has been accepted or rejected.  
           [0010]    The information can be sent in many different ways. For example, the information can be sent in an Active File Transfer system (AFTS), via e-mail, through a secured webpage or through a Common Gateway Interface (CGI). In addition, since much of the information relayed between the network of computers is private information, it is encrypted before it is sent from one computer to another. 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0011]    Other objects and features of the present invention will become apparent from the following detailed description considered in connection with the accompanying drawings which disclose several embodiments of the present invention. It should be understood, however, that the drawings are designed for the purpose of illustration only and not as a definition of the limits of the invention.  
         [0012]    In the drawings, wherein similar reference characters denote similar elements throughout the several views:  
         [0013]    [0013]FIG. 1 shows an overview of the method of the invention;  
         [0014]    [0014]FIG. 2 shows a schematic depiction of network designed to achieve the method of the invention;  
         [0015]    [0015]FIG. 3 a  shows the steps involving the second stage of the lending process;  
         [0016]    [0016]FIG. 3 b  shows the steps involving the third stage of the lending process;  
         [0017]    [0017]FIG. 4 shows the steps of the fourth stage of the lending process;  
         [0018]    [0018]FIG. 5 shows the steps of the fifth stage of the lending process;  
         [0019]    [0019]FIG. 6 shows a schematic of the filter process, matching an individual lender to an individual borrower;  
         [0020]    [0020]FIG. 7 shows the lending process where an individual lender selects from a plurality of borrowers;  
         [0021]    [0021]FIG. 8 shows the steps of the sixth stage of the lending process;  
         [0022]    [0022]FIG. 9 a  shows a schematic of the seventh stage of the lending process;  
         [0023]    [0023]FIG. 9 b  shows the various transfer methods in the eighth stage of the lending process; and  
         [0024]    [0024]FIG. 10 shows the steps of the Active File Transfer System in the eighth stage in the of the lending process;  
         [0025]    [0025]FIG. 11 shows the steps of the Active File Transfer System in the ninth stage of the lending process; and  
         [0026]    [0026]FIG. 12 shows the tenth stage of the lending process. 
     
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS  
       [0027]    Essentially, the invention is a process and a computer for coordinating loans between lending institutions and borrowers via the Internet. FIG. 1 illustrates the ten general stages in the process required to coordinate an electronic credit application between a prospective borrower and a plurality of lending institutions. For example, in stage 1 the process presents background information and a credit application to a prospective borrower-Internet user on a web site. In stage 2, the prospective borrower inputs information onto the web site. In stage 3, validation checks are performed on this information to make sure that the application is complete and correct. Next, stage 4 involves storing and manipulating the credit application in a database. In stage 5, a Fair Isaac Credit Score is obtained based upon the credit application and that score is matched to the application and stored in the database. Next, in stage 6, the application is filtered where it is compared to a list of criteria presented by a series of lending institutions. If the application passes this list of criteria then in stage 7 the application is sent to each one of those institutions whose criteria match with the application. In stage 8 the lender processes the application and can either accept or deny it. If the lender accepts the application then in stage 9, the borrower can reply stating whether he accepts or denies the lender&#39;s application. Finally, in stage 10, information about this transaction is sent to a database to allow lending institutions to have access to their lending history.  
         [0028]    For this process to occur, there must be a series of computers connected to each other via telecommunication lines as shown in FIG. 2. Here, computer program  10 , controls the process and is housed on loan processing computer  100 . Loan processing computer  100  coordinates a loan application between a series of lending institution computers  200 , and a plurality of borrower computers  300 . Computer program  10  is stored on loan processing computer  100  in storage device  110  and is run by processor  112 . Program  10  is designed to transmit and receive information through the Internet via a web browser such as Netscape or Internet Explorer, installed on the computers.  
         [0029]    Loan processing computer  100  must have sufficient memory and processor power to project program  10  over the Internet. Therefore, the recommended minimum requirements for processor  12  on computer  100  is an Intel Pentium 200 Mhz processor. The remaining standard components are 64 megabytes of ram, 2 gigabytes of disk space, an Internet connection, additional Ethernet connection, and Windows NT workstation operating system. Computer  100  is installed with one Ethernet interface directly on the Internet, and the other Ethernet interface connected to a firewall storage device  110 , to allow disposition of files on a designated server inside the corporate network. In addition computer  100  could be a Unix style server that interfaces with other Unix and non-Unix based computers on the Internet.  
         [0030]    When program  10  runs on computer  100  it instructs computer  100  to interact with other computers through the Internet to co-ordinate a loan application. For example, as shown in FIGS. 1 and 2, in stage 1, computer  100  allows lender computers  200  to access information on web-page  114  housed in loan processing computer  100  at a predetermined URL address via telecommunication lines  400 . In stage 2, computer  100  allows prospective borrowers using satellite computers  300  to view a plurality of documents provided by computer  100 . Stage 2 consists of a series of steps that are shown in FIG.  3   a.  For example, in step  12 , computer  100  sends the prospective borrower background information documents to web-site  114  concerning the loan application. These background information documents include a document welcoming the Internet user to the web site, a document explaining the application process, and a document explaining the services provided. In step  14 , computer  100  sends an open application to a prospective borrower through the Internet to computer  300 . In step  15 , the prospective borrower inputs information onto the application. When the prospective borrower wants to send this information back to computer  100  he clicks a “SEND” button which initiates the third stage of the program.  
         [0031]    [0031]FIG. 3 b  outlines stage 3 wherein computer  100  sends a series of instructions to computer  300  to initiate edit and validation checks. In step  16 , computer  100  checks the Social Security number entered. In step  17  computer  100  checks the addresses, in step  18  it checks phone numbers, and in step  19  it checks the email addresses entered. The edit and validation checks in stage 3 insure that the data to be received by the database  140  in computer  100  is in the proper format for further processing. If computer  100  determines that the data is in the proper format, then the borrower can then transmit a completed application  115  to a database on computer  100 .  
         [0032]    [0032]FIG. 4 shows stage 4, wherein in step  20  the data from the completed application  115  is encrypted by SSL technology. Next in step  21 , at the borrowers instruction, this information is sent to computer  100 , unlocked and stored in storage device  110  for further manipulation. In this stage, the data from completed application  115  is sorted and stored in tables  150  in database  140  based on the type of loan requested(i.e. mortgage, home equity, credit card, etc.). Next, in step  22 , program  10  queries the data from tables  150  to produce reports providing loan information based on data given any field in the application form (i.e., state of residence, borrower income, etc.).  
         [0033]    In FIG. 5, computer  100  moves into stage 5, wherein in step  23 , computer  100  dials to a credit bureau housed on Credit Computer  500  via telecommunication lines  400 . In step  25 , computer  100  obtains a Fair Isaac Credit Score from computer  500  based upon the data sent to computer  500 . Next, in step  26 , computer  100  inputs the Fair Isaac Credit Score to the database tables  150 . The lenders can use this Fair Isaac Credit Score as one determinant to the borrower&#39;s credit risk.  
         [0034]    [0034]FIGS. 6, 7, and  8  show stage 6 of the process, wherein computer  100  runs a filter to match completed application  115  in table  150  against preset criteria established by each lender. As shown in FIG. 6, lender criteria are stored in tables  175  in lender database  170  on computer  100 . Wherein in FIG. 7 lender database  170  includes a listing of tables  175  for several lending institutions. The process for matching borrower&#39;s application in tables  150  to lender criteria in tables  175  is shown in FIG. 8. For example, in step  35 , program  10  starts the filter process. Next, in step  36 , the filter process initiates and moves to the appropriate type application  115  in tables  150 . Next, in step  37  the filter moves to a first lending institution in table  175 . In step  38 , program  10  instructs computer  100  to read all of the lending institution&#39;s criteria for extending credit. In step  39 , program  10  reads whether there are any criteria present in tables  175 . If the requested data is not present, next, in step  45  the filter checks to see if there is any database connection that is broken and whether the database information in the message. If the criteria are present, step  40  instructs computer  100  to see whether any remaining criteria to match to application  115  stored on tables  150 .  
         [0035]    If there are more criteria to match to application  115 , then in step  47 , program  10  checks to see whether that remaining criteria matches with application  115 . If the criteria matches with application  115  then in step  58 , program  10  advances to the next available criteria in tables  175 . As shown in FIG. 6, step  58  creates a loop back to step  40 . If the criteria does not match with application  115 , then in step  48 , program  10  checks to see whether there is another lending institution in database  170 . If there are no remaining lending institutions in database  170  then in step  59 , computer  100  generates a message that no acceptable match has been found. After this message, in step  51 , the filter process ends.  
         [0036]    If there is another lending institution found, then the filter process advances to another lending institution in step  49 . Step  49  creates a loop back to step  38  wherein the filter process reads all of the criteria for the new lending institution. This loop continues until in step  40 , the filter finds there are no criteria available to match to completed application  115 .  
         [0037]    If there are no more criteria to match to application  115 , then in step  50 , the filter determines whether there has been an acceptable match between a borrower and a lender. If there is an acceptable match, then in step  55  the filter selects that lender as a suitable lender for application  115 .  
         [0038]    In step  56  program  10  checks to see if there is another lending institution available, if yes, then program  10  advances to the next lending institution in step  49 . If there are no more lending institutions available, then program  10  advances to step  57  wherein the filter process ends. Finally in step  59   a  computer  100  selects a limited number of matched lending institutions in which to send application  115 . For example, if the filter process matches application  115  with 20 lending institutions, computer  100  may send application  115  to only a fraction of those matched lending institutions. This selection process in step  58  is based upon either random selection or a predetermined set of criteria stored in computer  100 .  
         [0039]    Next, as shown in FIG. 9 a  in stage 7, program  10  determines the interface method between computer  100  and the selected lending institution computers  200 . The interface method can be Common Gateway Interface (CGI), Active File Transfer (AFTS), as a secured file on a secured webpage (S.W.) or via e-mail. Stage 7 allows loan computer  100  to access many different lender sites which thereby allows for greater communication flexibility within the system.  
         [0040]    In stage 8, as shown in FIGS. 9 a,    9   b  and  10 , computer  100  sends data from table  150  via the interface method selected in stage 7 to the lending institutions selected in the filter process of stage 6. FIG. 10 shows the Active File Transfer System (AFTS) of FIG. 9 b  in greater detail. For example, in step  60 , program  10  instructs computer  100  to start the AFTS. Next, in step  61  a text referral notice is sent to The Institution Internet Host (IIH) computer  220 . In step  62 , IIH computer  220  requests a full message from computer  100 . In step  63  computer  100  sends an encrypted full message to IIH computer  220 . Next, in step  64  computer  200  moves the message to the Institution&#39;s Corporate Network (ICH)  600 . In step  65 , ICH  600  converts the message from HTML format to a customized fixed record format defined and controlled by the destination institution. Next, in step  70 , outside program  10 , this information can be processed and stored in the lender&#39;s system. In step  71  the lender approves or denies application  115 . If the lending institution approves application  115  it attaches an approval to the record file in step  73 . Alternatively if the lending institution denies application  115 , then in step  72  it attaches a denial to the record file. In step  74 , the lender computers  700  generate a text decision message file. This message file is converted from the existing format into HTML format and sent to computer  100  web-site via encrypted transmission in step  75 . The text decision message file contains a loan id number and a request for more information from the borrower. Computer  100  next stores the decision file in database  180  in step  80 . Next, in step  81 , computer  100  notifies an applicant that a decision has been made.  
         [0041]    In addition, the data from credit application  115  can also be sent via e-mail with Pretty Good Privacy (PGP) encryption as shown in FIG. 9 b.  PGP is an encryption program that can be used to encrypt, a binary file to someone, with very high security, without having to exchange a set of private encryption keys beforehand. In this style transfer system, the text of table  150  comprising credit application  115 , is transformed into an e-mail text message. Next, the e-mail message is encrypted in PGP format. Finally, computer  100  sends the e-mail message to computer  230  which is a remote networked computer on a lending institution&#39;s site.  
         [0042]    The third transfer process, that of the secured dynamic website serves as a place for lenders to log in to a website to change their lending criteria filters and to view loan applications. In this process, information is stored on computer  100  in a website that can be accessed by a lender. To access this site, a lender is given a login access account to log into the website that is encrypted by SSL technology. Once the lender logs into the website he can download information relating to a borrower&#39;s request for information.  
         [0043]    In the fourth transfer method, the Common Gateway Interface (CGI) format is shown in FIG. 9 b.  There, computer  100  sends data from table  150  to institution server  250  via a Common Gateway Interface (CGI) program. CGI programs allow for a server to server interface over which encrypted information can be transferred. For example, the data located on table  150  is first encrypted. Next the data can be sent from computer  100  to institution server  250 . Server  250  next stores and unlocks the encrypted data. This unlocked data can then be read by all other networked computers  230  in a lender&#39;s home network.  
         [0044]    In stage 9, as shown in FIG. 11, computer program  10  moves into the second phase of (AFTS) in step  82 . In this stage, the borrower informs the lender of his decision concerning the loan. For example, in step  83  a borrower sends his decision notification from computer  300  to computer  100 . Next, in step  84 , computer  100  generates and sends a notification to computer  220  (IIH). In step,  85  computer  100  sends a full acceptance message to IIH computer  220  and next moves the acceptance message to ICH computer  600  in step  90 . After that, in step  91  ICH computer  600  converts the acceptance message from HTML format and moves it to a final directory  190  on computer  230  (step  91 ).  
         [0045]    At this point the lending institution program takes over so that in step  93 , institution computer  230  processes the acceptance message. In step  94 , institution computer  230  attaches a receipt file to the acceptance message. In step  95 , institution computer  230  generates a notification of receipt message, and in step  96 , it converts the notification from its standard database format into HTML format. Finally, in step  97  ICH computer  600  sends a notification of the receipt message to computer  100  and in step  98  the Active File Transfer System ends.  
         [0046]    In the tenth and final stage, as shown in FIG. 12, in step  142  the lender contacts the borrower to coordinate the closing of the loan. Here, the lending institution has the borrower&#39;s name, social security number, application id number, phone number at both work and home, and the best time to contact the borrower from the acceptance email sent when the offer was accepted. The loan closing can take place in any way that the lender typically closes loans. Once all documents are signed and delivered from the borrower, the loan is closed. Once the lender closes a loan, in step  144  it contacts computer  100  and sends a notification of the loan closure. In step  146  computer  100  stores this information in result database  195  which can be accessed by the lenders in step  148 . Finally in step  152 , the process according to the invention ends for that individual transaction.  
         [0047]    While several embodiments of the present invention have been shown and described, it is to be understood that many changes and modifications may be made thereunto without departing from the spirit and scope of the invention as defined in the appended claims.