California Inventor Develops Patent for Method for Determining Premiums for Representation and Warranty Insurance for Mortgage Loans

By Targeted News Service

ALEXANDRIA, Va., Nov. 20 -- Arthur J. Prieston, San Rafael, Calif., has developed a patent (8,311,912) for a "method for determining premiums for representation and warranty insurance for mortgage loans."

The abstract of the patent published by the U.S. Patent and Trademark Office states: "An insurance program for entities in the mortgage industry that provides coverage for financial loss as a result of material inaccuracies in the financial information provided by or on behalf of the borrower. The insurance program preferably includes the initial insurance application and establishment of an insurance agreement, periodic issuing of individual insurance coverages for particular loans handled by the lender, training and consulting on improved controls for lenders, maintaining an ineligible database of entities and a database of loan information, and handling of claims. The periodic issuing of individual insurance coverages includes receiving production information from the lender and determining the premium for the production information based at least in part on the insurance agreement. In at least one embodiment, the periodic issuing of individual insurance coverages includes scrubbing production information against databases as part of determining which loans on which to calculate the premium. The insurance program also includes a methodology for lender processing of new mortgage applications."

The patent application was filed on March 7, 2005 (11/072,407). The full-text of the patent can be found at http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=8,311,912&OS=8,311,912&RS=8,311,912

Written by Satyaban Rath; edited by Hemanta Panigrahi.

SR1120HP1120-809766