Patent ID: 8275700

Claim:
A method for performing due diligence of a lender by providing a rating assessing risks associated with loan applications and loans handled by the lender, the method using at least one computer and at least one database, the method comprising: receiving lender information including loan sources used by the lender to obtain loan applications and loans, product types handled by the lender including the number and total dollar value of loans by product type, and a list of investors whom purchased loans from the lender, the received lender information is entered into one of the at least one database, contacting at least two investors from the list of investors regarding the lender that submitted the lender information, contacting investors includes populating one of the at least one database with information received from the contacted investors, reviewing internal controls used by the lender for processing loan applications and/or for conducting a post-closing review of loans recently closed, the review of the internal controls includes whether the internal controls are being used correctly during underwriting and funding of loans, where the review uses the at least one computer, analyzing the received lender information using the at least one computer and database entries associated with the lender being rated, and rating the lender using at least one computer based on information received from the investors, the review of the lender's internal controls, and the analysis of the lender information.