System and method for assessing mortgage broker and lender compliance

Abstract

Some embodiments disclosed herein are directed to systems and methods for assessing mortgage lender and broker compliance. The systems and methods may receive loan pricing data, underwriting data, and/or borrower data from mortgage brokers and/or lenders, reconstruct the underwriting processes performed by lenders and brokers, and monitor many aspects of these processes. The reconstructed results may then be compared to the actual results to detect potential non-compliance of laws and/or regulations, including the practice of upstreaming and/or downstreaming. Because some embodiments of the invention greatly enhance the monitoring capability of mortgage regulators, they would motivate mortgage lenders and brokers to better conform their underwriting practice to existing laws and regulations.

1 - 11 . (canceled) 
     
     
         12 . A system for assessing the performance of a lender or mortgage broker, the system comprising:
 a computer system that comprises at least one computing device;   a computer data repository that stores loan data for each of a plurality of mortgage loans provided by the lender or mortgage broker to borrowers, said loan data including borrower data and including actual loan term data that specifies actual loan terms, including actual pricing terms, offered to the respective borrowers; and   a performance assessment module configured to be executed by the computer system, the performance assessment module configured to cause the computer system to assess performance of the lender or mortgage broker by at least:
 generating, using a risk-based pricing model, reconstructed loan terms, including reconstructed pricing terms, for each of the plurality of loans, said reconstructed loan terms reflecting eligibilities of borrowers, said risk based-pricing model reflecting historical correlations between borrower attributes and loan defaults; and 
 for each of said loans, comparing the reconstructed loan terms to the corresponding actual loan terms, and generating a loan compliance measure based at least partly on the comparison. 
   
     
     
         13 . The system of  claim 12 , wherein the performance assessment module is further configured to cause the computer system to determine, based on the loan compliance measures for the plurality of loans, a performance measure reflective of how frequently the lender or mortgage broker has failed to offer borrowers loan terms for which they qualify. 
     
     
         14 . The system of  claim 12 , wherein the performance assessment module is additionally configured to cause the computer system to:
 detect that the terms of a loan at closing were less favorable than the terms specified in a corresponding good faith estimate (GFE); and   determine whether the less favorable terms are justified by a changed circumstances designation.   
     
     
         15 . The system of  claim 14 , wherein the performance assessment module is additionally configured to cause the computer system to determine whether a price increase associated with the changed circumstances designation exceeds a permissible price increase. 
     
     
         16 . The system of  claim 12 , wherein the performance assessment module additionally directs the computer system to determine, for a loan, whether the lender or mortgage broker properly calculated the corresponding borrower's ability to repay the loan. 
     
     
         17 . The system of  claim 12 , wherein the performance assessment module additionally directs the computer system to determine, for a loan, whether the lender or mortgage broker properly considered the corresponding borrower's ability to repay the loan. 
     
     
         18 . The system of  claim 12 , wherein the performance assessment module, in assessing loan compliance, additionally directs the computer system to compare the actual pricing data to survey data, said survey data including baseline pricing data. 
     
     
         19 . The system of  claim 12 , wherein the performance assessment module, in assessing loan compliance, additionally directs the computer system to compare the actual pricing data to national pricing data. 
     
     
         20 . The system of  claim 12 , wherein the performance assessment module is additionally configured to use the loan compliance measures to benchmark individual loan officers against other loan officers. 
     
     
         21 . The system of  claim 12 , wherein the performance assessment module is additionally configured to use the loan compliance measures to benchmark individual branches of a lending organization against other branches. 
     
     
         22 . The system of  claim 12 , wherein the performance assessment module is additionally configured to cause the computer system to generate, for a loan, a report that indicates the reconstructed loan terms for the loan, the actual loan terms for the loan, and an overage amount representing a difference between the reconstructed and actual loan terms for the loan. 
     
     
         23 . A system for assessing the lender performance, the system comprising:
 a computer system that comprises at least one computing device;   a computer data repository that stores loan data for each of a plurality of mortgage loans provided by a lender to borrowers, said loan data including borrower data and including actual loan term data that specifies actual loan terms, including actual pricing terms, offered to the respective borrowers; and   a performance assessment module configured to be executed by the computer system, the performance assessment module configured to cause the computer system to assess lender performance by at least:
 generating a loan compliance measure for each loan, said loan compliance measure based in part on a determination of whether the lender properly calculated and considered a loan repayment ability of the corresponding borrower; and 
 generating a lender compliance measure for the lender based at least partly on the loan compliance measures for the plurality of loans. 
   
     
     
         24 . The system of  claim 23 , wherein generating the loan compliance measures additionally comprises generating reconstructed loan terms, including reconstructed pricing terms, for each of the plurality of loans based on a risk-based pricing model, and comparing the reconstructed loan terms to the corresponding actual loan terms. 
     
     
         25 . The system of  claim 23 , wherein the performance assessment module is additionally directs the computer system to verify income and assess used by the lender to determine a borrower's ability to repay. 
     
     
         26 . The system of  claim 23 , wherein the performance assessment module is additionally configured to use the loan compliance measures to benchmark individual loan officers against other loan officers. 
     
     
         27 . A system for assessing the lender performance, the system comprising:
 a computer system that comprises at least one computing device;   a computer data repository that stores loan data for each of a plurality of mortgage loans provided by a lender to borrowers, said loan data including borrower data and including actual loan term data that specifies actual loan terms, including actual pricing terms, offered to the respective borrowers; and   a performance assessment module configured to be executed by the computer system, the performance assessment module configured to cause the computer system to assess lender performance by at least:
 generating a loan compliance measure for each loan, said loan compliance measure based in part on a comparison of the actual pricing terms to national pricing data reflective of national averages; and 
 generating a lender compliance measure for the lender based at least partly on the loan compliance measures for the plurality of loans. 
   
     
     
         28 . The system of  claim 27 , wherein generating the loan compliance measures additionally comprises generating reconstructed loan terms, including reconstructed pricing terms, for each of the plurality of loans based on a risk-based pricing model, and comparing the reconstructed loan terms to the corresponding actual loan terms. 
     
     
         29 . The system of  claim 27 , wherein the performance assessment module is additionally configured to use the loan compliance measures to benchmark individual loan officers against other loan officers.