Method and System for Offering Insurance for a Mortgage Pool Using a Risk Assessment

Abstract

An insurance program for entities in the mortgage industry that provides coverage for financial loss as a result of, for example, material inaccuracies in the financial information provided by or on behalf of the borrower. The method in at least one embodiment includes assessing the risks of financial loss for a mortgage pool. The method in at least one embodiment includes the scrubbing of mortgage production information for each insured lender to calculate a premium.

1 . A method for providing insurance to at least one aggregating entity of a mortgage pool, the method comprising:
 receiving an insurance application from the aggregating entity for the mortgage pool,   conducting a risk assessment of the mortgage pool using at least one computer based at least on information contained in the insurance application,   determining a premium to charge using the at least one computer for the mortgage pool based at least on the risk assessment, and   issuing an insurance agreement using the at least one computer including the premium for insurance coverage of the mortgage pool to the aggregating entity.   
   
   
       2 . The method according to  claim 1 , further comprising determining a risk classification for the mortgage pool based on the risk assessment, and
 the risk classification is used to determine the premium.   
   
   
       3 . The method according to  claim 2 , wherein the risk classification includes a risk rating. 
   
   
       4 . The method according to  claim 2 , wherein the risk classification is based on a risk rating for at least one lender from whom at least one mortgage is being included in the mortgage pool. 
   
   
       5 . The method according to  claim 1 , further comprising
 scrubbing the loans in the mortgage pool against at least one ineligible database using the at least one computer to eliminate from coverage any mortgages that cause a match with an entity in the at least one ineligible database, and   wherein the premium is determined further based on the mortgage pool after removal of any eliminated mortgage, and   the insurance agreement covers the mortgage pool after removal of any eliminated mortgage.   
   
   
       6 . The method according to  claim 1 , further comprising
 scrubbing the loans in the mortgage pool against at least one ineligible database using the at least one computer to eliminate from coverage any mortgages that cause a match with an entity in the at least one ineligible database, and   wherein the insurance agreement covers any remaining mortgages in the mortgage pool.   
   
   
       7 . The method according to  claim 1 , wherein the insurance application includes identification of each lender from whom mortgages are provided for inclusion in the mortgage pool, the method further comprising
 comparing identified lenders using a computer to a lender rating database containing lenders who have been previously received a risk assessment, and   including in the risk assessment information for any lender matched to at least one entry in the lender rating database.   
   
   
       8 . The method according to  claim 7 , wherein determining the premium includes removing from the mortgage pool any mortgage from any lender matched to at least one entry in the lender rating database. 
   
   
       9 . The method according to  claim 7 , further comprising
 determining insurance coverage with the at least one computer which of the matched lenders are covered under insurance covering at least one of fraud and misrepresentation,   reducing the premium with the at least one computer for the mortgage pool by a percentage reflecting the percentage of mortgages in the mortgage pool from any insured lender based on the determination of insurance coverage.   
   
   
       10 . The method according to  claim 7 , wherein the lender rating database includes historical performance information regarding each lender with an entry in the lender rating database. 
   
   
       11 . A method for providing insurance to aggregating entities for a mortgage pool, the method comprising:
 receiving with at least one computer information from the aggregating entity for the mortgage pool including identification of lenders from whom mortgages were obtained for inclusion in the mortgage pool,   comparing the identified lenders with the at least one computer to a lender database containing a plurality of lenders that have previously received a risk assessment,   conducting a risk assessment of the mortgage pool based at least on information received from the aggregating entity and the lender comparison,   assigning a risk rating based on the risk assessment and any previously determined risk assessments for individual lenders,   determining a premium to charge for the mortgage pool based at least on the risk rating, and   issuing an insurance agreement for coverage of the mortgage pool to the aggregating entity.   
   
   
       12 . The method according to  claim 11 , further comprising determining a risk classification for the mortgage pool based on the risk assessment, and
 the risk classification is used to determine the premium.   
   
   
       13 . The method according to  claim 11 , further comprising
 scrubbing the loans in the mortgage pool against at least one ineligible database using the at least one computer to eliminate from coverage any mortgages that cause a match with an entity in the at least one ineligible database, and   wherein the premium is determined further based on the mortgage pool after removal of any eliminated mortgage, and   the insurance agreement covers the mortgage pool after removal of any eliminated mortgage.   
   
   
       14 . The method according to  claim 11 , further comprising
 scrubbing the loans in the mortgage pool against at least one ineligible database using the at least one computer to eliminate from coverage any mortgages that cause a match with an entity in the at least one ineligible database, and   wherein the insurance agreement covers any remaining mortgages in the mortgage pool.   
   
   
       15 . A method for providing an insurance program to lenders in a mortgage field, the method comprising:
 determining using at least one computer which lenders are insurable based on a risk assessment,   issuing to individual lenders an insurance agreement for that lender including pricing and conditions from the at least one computer,   receiving mortgage production information as computer readable data from each insured lender on a periodic basis with the at least one computer,   scrubbing the mortgage production information for each insured lender against at least one ineligible database using the computer to eliminate from coverage under the insurance agreement any mortgages that cause a match with an entry in at least the ineligible database, and   calculating a premium for each insured lender using the at least one computer based on pricing in the insurance agreement for that lender for covering any mortgages in the mortgage production information not removed in response to the scrubbing of the mortgage production information.   
   
   
       16 . The method according to  claim 15 , further comprising:
 receiving with at least one computer information from an aggregating entity for the mortgage pool including identification of lenders from whom mortgages were obtained for inclusion in a mortgage pool,   comparing the identified lenders with the at least one computer to a lender database containing a plurality of lenders that have previously received a risk assessment,   conducting a risk assessment of the mortgage pool based at least on information received from the aggregating entity and the lender comparison,   assigning a risk rating based on the risk assessment and any previously determined risk assessments for individual lenders,   determining a premium to charge for the mortgage pool based at least on the risk rating, and   issuing a mortgage pool insurance agreement for coverage of the mortgage pool to the aggregating entity.   
   
   
       17 . The method according to  claim 16 , further comprising removing from coverage for the mortgage pool any loan covered by any insurance agreement issued to any lender. 
   
   
       18 . The method according to  claim 16 , further comprising
 scrubbing the loans in the mortgage pool against at least one ineligible database using the at least one computer to eliminate from coverage any mortgages that cause a match with an entity in the at least one ineligible database, and   wherein the mortgage pool insurance agreement covers any remaining mortgages in the mortgage pool.