Direct on-line mortgage auction network

Abstract

The present invention provides a computerized (Internet, online) network for home mortgage borrowers to compete against each other and other mortgage companies (brokers) in an auction format for certain pools of funds. These funds are provided to the auction from the secondary mortgage market in pools on a daily (hourly) basis. The present invention provides qualified participants with a direct link to the secondary mortgage market, hence bypassing some middlemen (wholesalers and retailers) in the process. Participants go to a common Web site and complete a loan application. The participants then electronically submit the loan application to the common Web site. The loan application is then underwritten, and if approved, the participant is issued an approval code. With the approval code, the participant can then submit a bid at the auction. Subsequent to the approval of the bid, the borrower can close escrow at the interest rate and the bid price. The auction can change on a daily (hourly) basis, as pricing of the loan products is in real time figures.

1 . A direct online mortgage auction network comprising:
 a mortgage auction network Web site, the network Web site providing secondary market mortgage pools of secondary market funds; and   a plurality of qualified participants having direct online access to the network Web site, the participants seeking to qualify for secondary market mortgages from the pools of funds by bidding between each other, such that one or more of the bidding participants qualifies for a portion of the secondary market mortgage fund.