“System And Method For Aggregating Real-Time Mortgage Insurance Rate Quotes For Mortgage Brokers” in Patent Application Approval Process (USPTO 20230394586): Patent Application

2023 DEC 25 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A patent application by the inventors DiTomasso, Anthony (Manchester, NH, US); Monsell, Alexander Robert (Denver, CO, US); Monsell, Selena Chen (Denver, CO, US), filed on June 7, 2023, was made available online on December 7, 2023, according to news reporting originating from Washington, D.C., by NewsRx correspondents.

This patent application has not been assigned to a company or institution.

The following quote was obtained by the news editors from the background information supplied by the inventors: “

“a. Technical Field of the Disclosure

“The present disclosure relates generally to a system and methods for aggregating accurate, real-time mortgage insurance rate quotes. More particularly, the present disclosure relates to a system and methods for aggregating accurate, real-time mortgage insurance rate quotes and presenting accurate rate quotes in real-time to mortgage brokers thereby eliminating the lenders’ role in obtaining mortgage insurance rate quotes, and enabling the mortgage broker to use a computer-based mortgage insurance rate quote platform to more quickly and accurately prepare a loan packet for a real estate sale.

“b. Background of the Disclosure

“When purchasing real estate, there are a number of items that the purchaser must obtain to complete the purchase. These items include a purchase contract, an appraisal, a mortgage, usually from a bank, investor or lender (all of the foregoing referred to herein as lenders), and mortgage insurance, among other items.

“Specifically, the mortgage insurance is a vehicle to protect from losses due to non-payment of the mortgage. In other words, mortgage insurance is an insurance policy that compensates lenders in mortgage-backed securities for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.

“Private mortgage insurance (PMI) is typically required with most conventional or non-government backed mortgage programs when the down payment or equity position is less than twenty percent of the property value. In other words, when purchasing or refinancing a home with a conventional mortgage, if the loan-to-value (LTV) is greater than eighty percent, the borrower will likely be required to carry private mortgage insurance.

“Borrower paid private mortgage insurance (BPMI), is the most common type of PMI in the mortgage lending marketplace. BPMI allows borrowers to obtain a mortgage without having to provide twenty percent down payment, by covering the lender for the added risk of a high LTV mortgage. Borrowers can request PMI cancellation when the amount owed is reduced to the eighty percent LTV level. Additionally, cancellation of borrower-paid mortgage insurance occurs when the loan is scheduled to reach seventy-eight percent of the original appraised value or sales price, whichever is less. The schedule is based on the original amortization schedule for fixed-rate loans and the current amortization schedule for adjustable-rate mortgages. BPMI can, under certain circumstances, be cancelled earlier by the servicer ordering a new appraisal showing that the loan balance is less than eighty percent of the home’s value due to appreciation.

“Likewise, lender paid private mortgage insurance (LPMI) is similar to BPMI except that it is paid by the lender and built into the interest rate of the mortgage. LPMI is usually a feature of loans that do not require mortgage insurance for high LTV loans. The advantage of LPMI is that the total monthly mortgage payment is often lower than a comparable loan with BPMI. However, because it is built into the interest rate, a borrower cannot cancel the insurance when the equity position reaches the required LTV level without refinancing.

“A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. As markets for mortgages have become more competitive, mortgage brokers are used to sell a lending institute’s products. Additionally, a real estate broker, real estate agent or realtor is a person who represents sellers or buyers of real estate or real property. While brokers may work independently, an agent usually works under a licensed broker to represent clients. Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state’s laws of agency, and many states require written disclosures to be signed by all parties outlining the duties and obligations.

“Along those lines, mortgage brokers, real estate brokers, real estate agents or realtors (all of the foregoing referred to herein as brokers) work with their clients to obtain the necessary documents and products for the real estate purchase. Usually, brokers are not paid unless the real estate deal closes.

“Brokers have a fiduciary duty to build a complete loan packet for the client, which includes mortgage insurance among other items. Brokers must first get mortgage insurance quotes or estimates before a buyer can decide which mortgage insurance to purchase. However, brokers currently have only one option to obtain mortgage insurance quotes for their clients. They first have to reach out to each individual lender to provide the loan data for the quote(s). The lender then reaches out to the different mortgage insurance providers (i.e., Essent, Enact MI, National MI, Radian, and MGIC, among others), and manually enters in all of the loan data. This must be done each time to obtain a single rate quote from each of the providers. Additionally, if the brokers are comparing different products, they will have to repeat the process several times over, and then compare the results manually.

“Existing patent applications and products pertain to lenders and others to search for mortgage insurance rate estimates to provide to the brokers, when the brokers provide the loan data and request quotes. None of these references, however, disclose the functionality of aggregating accurate, real-time mortgage insurance rate quotes, and presenting these accurate rate quotes in real-time to mortgage brokers, thereby eliminating the lenders’ role in obtaining mortgage insurance rate quotes.

“For example, Australian Patent Application No. AU2015200557A1, titled Mortgage Insurance Premium Calculation Method, System & Apparatus, to Christopher Ronald Edward Joye, et al., discloses a method, apparatus and system for computing mortgage insurance premiums for shared equity mortgages. Shared equity mortgages rank behind a conventional interest bearing first mortgage and both mortgages are secured over the same property. Details of the mortgages and property are stored in the data store of a computer system. The future sale price at predetermined future dates for each property is estimated in order to calculate each possible future loss in the event that the shared equity mortgage is terminated at each future date. This information and an estimated probability of termination at each future dates are used to calculate an appropriate insurance premium.

“Another example, US Patent Application No. US20130185101A1, titled System, Method, and Computer Program Product for Underwriting Mortgage Loan Insurance, to Kim Garland, et al., discloses underwriting systems and methods that include a non-transitory, tangible computer-readable storage medium bearing instructions for performing underwriting steps for a mortgage insurance product for a mortgage between a borrower and a lender. A processor is adapted to execute an underwriting program contained on the computer-readable medium. A web-enabled interface is adapted to exchange information with partner sites, including to receive loan information, to send mortgage insurance information generated by the underwriting program, and to receive borrower credit information. The underwriting program includes a post-closing underwriting module adapted to perform a post-closing fraud analysis using the loan information received through the web-enabled interface and adapted for use in performing at least a portion of a post-closing borrower credit review using the borrower credit information received through the web-enabled interface within a predetermined period of time after the loan has closed and before a claim under the mortgage insurance product has been received.

“Yet another example, US Patent Application No. US20050108028A1, titled Methods and Apparatus for Marketing Mortgage Insurance and Associated Products and Performing Transactions including Mortgage Insurance, to Kurt Arehart, discloses systems and techniques for marketing and implementing transactions involving mortgage financing. A system according to one aspect of the invention includes a data repository storing information used to design financial products and a product database including information relating to various products. At least one of the products for which information is stored in the database includes adjusting the amount of the loan to include an excess amount, adjusting the interest rate of the loan to a rate above the prevailing rate and optionally including a prepaid mortgage insurance policy with the loan, and allowing the borrower the option of purchasing discount points to reduce the interest rate to the prevailing rate. The technique further includes disbursing the excess amount of the loan to the borrower. The system may also include a comparison module receiving transaction information, computing the financial effects of available products and presenting the results to the borrower.

“However, there are no known products or patent references that allow for aggregating accurate, real-time mortgage insurance rate quotes and presenting accurate insurance rate quotes to a broker, thereby eliminating the lenders’ role in obtaining mortgage insurance rate quotes. Additionally, there are no known patent references or products that enable a broker to use a computer-based mortgage insurance rate quote platform to more quickly and accurately prepare a loan packet, by including real-time mortgage insurance rate quotes that are immediate and accurate. Accordingly, there is a need for such a platform to generate more robust and precise mortgage insurance rate quotes for enabling brokers to prepare loan packets for their clients.”

In addition to the background information obtained for this patent application, NewsRx journalists also obtained the inventors’ summary information for this patent application: “A general objective of the present disclosure is a computer-based mortgage insurance rate quote platform that overcomes the deficiencies of existing platforms and systems by providing aggregation of real-time mortgage insurance rate quotes and presenting accurate insurance rate quotes to a broker, thereby eliminating the lenders’ role in obtaining mortgage insurance rate quotes.

“Another general objective of the present disclosure is a computer-based mortgage insurance rate quote platform that provides for the broker to obtain accurate quotes quicker and for the client to thereby make more informed and quicker mortgage insurance rate decisions.

“An objective of the present disclosure, a computer based mortgage insurance rate quote platform overcoming the deficiencies of existing platforms and systems by providing aggregation of real-time mortgage insurance rate quotes and presenting accurate insurance rate quotes to a broker, thereby eliminating the lenders role in obtaining mortgage insurance rate quotes, is to aggregate multiple mortgage insurance rate quotes related to a single real estate transaction and presents those quotes to the broker in an easily understandable format.

“Another objective of the present disclosure is a computer-based mortgage insurance rate quote platform that overcomes the deficiencies of existing platforms and systems by generating more timely, robust and accurate mortgage insurance rate quotes for enabling brokers to prepare loan packets for their clients.

“Yet another objective of the present disclosure is a computer-based mortgage insurance rate quote platform that overcomes the deficiencies of existing platforms and systems by providing improved aggregation of relevant mortgage insurance rate information.

“Yet another objective of the present disclosure is a computer based mortgage insurance rate quote platform that overcomes the deficiencies of existing platforms and systems by providing improved aggregation and calculations of accurate mortgage insurance rate quotes for all of the lenders that the mortgage brokerages partner with by using a lender’s master policy number to access one or more of the mortgage insurance provider’s rate quotes in real-time securely, rather than providing an estimated quote, without exposing confidential identifiers. The master policy number is an identification number or ID number for the business inside each of the insurance providers’ systems. This master policy number is unique to each lender and every provider has a different number for the same lender. This specific master policy number allows lenders to negotiate rates and to apply those discounts every time a quote is pulled.

“Other objects and advantages of the present disclosure will become apparent to one having ordinary skill in the art after reading the specification in light of the drawing figures, however, the spirit and scope of the present disclosure should not be limited to the description of the embodiments contained herein.”

The claims supplied by the inventors are:

“1. A mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes, comprising: a mortgage insurance rate quote platform, said mortgage insurance rate quote platform aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes; a mortgage broker system, said mortgage broker system controlled by a mortgage broker, said mortgage broker capable of preparing a loan packet based on accurate, real-time real estate mortgage insurance rate quotes from said mortgage insurance rate quote platform; a mortgage insurance provider system, said mortgage insurance provider system capable of providing an accurate, real-time master policy quote to said mortgage insurance rate quote platform; a lender system, said lender system comprising at least one lender, said lender system capable of providing a verification of a relationship between said at least one lender and said mortgage broker.

“2. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 1, wherein said mortgage insurance rate quote platform performs the steps of: a) receive a loan information from a mortgage broker, b) request a verification from said lender system as to a relationship between said at least one lender and said mortgage broker c) obtain said verification from said lender system, d) obtain an accurate, real-time master policy mortgage insurance rate quote from said mortgage insurance provider system; and e) upon verification, transmit said accurate, real-time master policy mortgage insurance rate quote to said mortgage broker system for mortgage broker to prepare said loan packet.

“3. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said loan information comprises a lender, a loan number, a loan amount, an indicator as to whether a second mortgage is present, a loan to value determination.

“4. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said loan information comprises a street address, a city, a state, as zip code, a housing expense ratio.

“5. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said loan information comprises a debt-to-income calculation, an indicator of non-traditional credit, a number of borrowers, a credit score, a total monthly income.

“6. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said loan information comprises a social security number, an indication of self-employment, a bankruptcy and foreclosure status, an occupancy type.

“7. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said loan information comprises a loan type, an estimated mortgage interest rate, a loan purpose, an amortization schedule, a property type, a number of units, a renewal option, a refundable premium.

“8. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said accurate, real-time master policy quote comprises a mortgage insurance rate quote.

“9. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said accurate, real-time master policy quote comprises a monthly premium.

“10. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 2, wherein said accurate, real-time master policy quote comprises a single premium, a lender single amount.

“11. A non-transitory, computer-readable memory storing instructions that, when executed by a processor, cause the processor to perform a method for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes, the method comprising: a) receiving loan information from a mortgage broker system controlled by a mortgage broker through a mortgage insurance rate quote platform; b) requesting a verification from at least one lender as to a relationship between said at least one lender and said mortgage broker; c) obtaining said verification from said at least one lender as to said relationship with said mortgage broker; d) obtaining an accurate, real-time master policy quote from at least one mortgage insurance provider; e) upon verification of said relationship, presenting said accurate, real-time master policy quote to said mortgage broker system, allowing said mortgage broker to prepare a loan packet.

“12. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said loan information comprises a lender, a loan number, a loan amount, an indicator as to whether a second mortgage is present, a loan to value determination.

“13. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said loan information comprises a street address, a city, a state, as zip code, a housing expense ratio.

“14. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said loan information comprises a debt-to-income calculation, an indicator of non-traditional credit, a number of borrowers, a credit score, a total monthly income.

“15. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said loan information comprises a social security number, an indication of self-employment, a bankruptcy and foreclosure status, an occupancy type.

“16. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said loan information comprises a loan type, an estimated mortgage interest rate, a loan purpose, an amortization schedule, a property type, a number of units, a renewal option, a refundable premium.

“17. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said accurate, real-time master policy quote comprises a mortgage insurance rate quote.

“18. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said accurate, real-time master policy quote comprises a monthly premium.

“19. The mortgage insurance rate quote system for aggregating and presenting accurate, real-time real estate mortgage insurance rate quotes in claim 11, wherein said accurate, real-time master policy quote comprises a single premium, a lender single amount.”

URL and more information on this patent application, see: DiTomasso, Anthony; Monsell, Alexander Robert; Monsell, Selena Chen. System And Method For Aggregating Real-Time Mortgage Insurance Rate Quotes For Mortgage Brokers. U.S. Patent Application Number 20230394586, filed June 7, 2023 and posted December 7, 2023. Patent URL (for desktop use only): https://ppubs.uspto.gov/pubwebapp/external.html?q=(20230394586)&db=US-PGPUB&type=ids

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