Patent ID: 7835919

Claim:
A method, performed by a computer, for generating a prediction of whether an appraisal of a property is faulty or reliable, the method comprising the steps of: accessing, by the computer, appraisal data reflecting appraisals of properties associated with previous loans, wherein the previous loans include a first group of loans having reliable appraisals and a second group of loans having faulty appraisals; processing, by the computer, the appraisal data to identify the previous loans in the first group and the previous loans in the second group; accessing, by the computer, loan data reflecting characteristics of the previous loans; determining, by the computer, predictive factors of the characteristics of the previous loans using both the characteristics of the previous loans in the first group and the characteristics of the previous loans in the second group, wherein the predictive factors represent correlations between the characteristics of the previous loans and accuracy of the appraisals of properties associated with previous loans; storing, in a non-transitory memory device, data reflecting the predictive factors; generating a prediction of whether an appraisal of a property associated with a new loan is faulty or reliable by applying the determined predictive factors to corresponding characteristics of the new loan; and outputting the prediction for display.