Patent ID: 7783565

Claim:
A method of evaluating the repurchase risk of a mortgage loan at the time of delivery, the method comprising: receiving at a purchaser computer system, information, from a seller computer system, related to the loan, the loan having a repurchase right associated therewith requiring a lender who originated the loan to repurchase the loan from a purchaser upon request by the purchaser if certain events have occurred; determining by the purchaser computer system a joint probability, at least in part based upon the information relating to the loan, of an underwriting discrepancy and an adverse event in connection with the loan; determining by the purchaser computer system a loan repurchase risk, reflecting a risk of the repurchase right becoming exercisable, based upon the joint probability; storing the determined repurchase risk in a computerized database of the purchaser computer system; classifying, via the purchaser system, the loan, based on the determined repurchase risk, as above or below a predetermined risk threshold, the predetermined risk threshold representing the risk above which loans are considered too risky to waive repurchase rights; and if the loan repurchase risk is below the predetermined risk threshold, communicating by the purchaser system to the lender system a waiver of repurchase rights for the loan.