Patent ID: 7707103

Claim:
A method for performing due diligence of a lender by providing a rating assessing risks that loan applications and loans handled by the lender will be based on fraud or result in default, the method using at least one computer and a database, the method comprising: receiving a request for a lender questionnaire from a requestor, forwarding the lender questionnaire to a lender to be rated regarding loans handled by the lender and whose information will be submitted in response to the lender questionnaire requested by the requestor, receiving lender information in response to the lender questionnaire from the lender including a business model used by the lender, loan sources used by the lender to obtain loan applications and loans, and product types handled by the lender including the number and total dollar value of loans by product type, the received lender information is entered into the database, contacting investors regarding the lender from whom the investors have purchased at least one loan from previously, the lender contacted about being the lender that responded to the lender questionnaire, contacting investors includes populating the database with information received from the contacted investors, reviewing qualitative controls established by the lender for processing loan applications and/or for conducting a post-closing review of loans recently closed, the review of the qualitative controls includes whether the qualitative controls are being used correctly during underwriting and funding of loans, where the review uses the computer, analyzing the received lender information provided in response to the lender questionnaire using the computer and database entries associated with the lender being rated, and rating the lender based on information received from the investors, the review of the lender's qualitative controls, and the analysis of the lender information, where rating uses the computer.