Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1999-12-23
2003-09-16
Chilcot, Richard (Department: 3627)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S001100
Reexamination Certificate
active
06622131
ABSTRACT:
BACKGROUND
The disclosures herein relate in general to information processing systems and in particular to a method and system for auctioning loans through a computing system.
If a customer is seeking a loan for purchase of an item (e.g. automobile), the customer may want to obtain a lowest available loan rate of interest, as for example by auctioning the loan to numerous loan sources (e.g. banks). Various websites (e.g. http://www.ebay.com) have been implemented for auctioning of items through the Internet. However, such websites have been implemented primarily for auctioning of the items themselves, as contrasted with auctioning of loans for purchase of the items.
Before auctioning a loan through a website, the customer may want assurance that such website attracts a higher number of loan sources to submit bids. By including features directed specifically to the auctioning of loans, a website is more likely to attract: (a) a higher number of loan sources to submit bids, thereby achieving convenience, efficiency and reliability for the customer; and (b) likewise a higher number of customers, who seek a more convenient, efficient and reliable “one stop” system for such auctioning.
Some websites (e.g. http://www.priceline.com, http://www.eloan.com, and http://www.lendingtree.com) have been implemented for selling loans through the Internet. However, those websites have various shortcomings, because they fail to address a number of customer preferences.
For example, in auctioning a loan, the customer may prefer to remain anonymous to numerous loan sources, especially if the loan sources would otherwise (a) request, from credit bureaus, reviews of the customer's credit history, and/or (b) inundate the customer with uninvited correspondence and personal solicitation. If numerous loan sources request (from credit bureaus) reviews of the customer's credit history, then unreasonable damage (such as a negative “Beacon” score consequence) might be inflicted on the customer's credit history as a result of such reviews.
Notably, in auctioning a loan, the customer may prefer to be the offeree of a bid, as contrasted with being the offeror of the bid. For example, if a loan source submits a bid, the customer may prefer to reject such bid without obligation or financial penalty. Moreover, the customer may want the loan sources to submit respective bids without knowing a loan rate of interest that would be acceptable to the customer, thereby increasing the likelihood of more favorable bids.
Also, the customer may prefer to auction the loan to hundreds, or perhaps thousands, of loan sources. For that reason, if a website permits only a restricted few loan sources to effectively submit bids for providing a loan to a particular customer, such a restriction would be a significant shortcoming.
A more convenient, efficient and reliable system for auctioning loans would be particularly valuable in the context of automobile purchases. For example, in many cases, a customer receives an original loan for purchase of an automobile at higher-than-market rates of interest, sometimes through the automobile dealer who then profits from the original loan. Accordingly, the customer may seek a more convenient, efficient and reliable system for auctioning the refinancing of such a loan.
Accordingly, a need has arisen for a method and system for auctioning loans through a computing system, in which various shortcomings of previous techniques are overcome. For example, a need has arisen for a method and system for auctioning loans through a computing system, in which: (a) features are directed specifically to the auctioning of loans; (b) a higher number of customer preferences are addressed; and (c) the customer may more conveniently, efficiently and reliably auction the refinancing of a loan.
SUMMARY
One embodiment, accordingly, provides for a system, including a computing device for receiving first information about a customer. The computing device outputs second information to at least first and second loan sources. The second information includes at least a portion of the first information. From the first and second loan sources, the computing device receives submissions of respective first and second bids for providing a loan to the customer for purchase of an item. The computing device identifies at least one of the first and second bids as being most favorable. To the customer, the computing device outputs third information about the identified bid, including an identity of at least one of the loan sources that submitted the identified bid.
In another embodiment, first information includes an identity of the customer. In response to the first information, the computing device determines a measure of certainty regarding the customer's ability to repay a loan. To at least one loan source, the computing device outputs second information, including at least a portion of the first information and the measure of certainty regarding the customer's ability to repay the loan, yet withholding the customer's identity. From the loan source, the computing device receives a submission of a bid for providing the loan to the customer for purchase of an automobile which is security for the loan. To the customer, the computing device outputs third information about the bid, including an identity of the loan source.
A principal advantage of these embodiments is that various shortcomings of previous techniques are overcome. For example, a principal advantage of these embodiments is that: (a) features are directed specifically to the auctioning of loans; (b) a higher number of customer preferences are addressed; and (c) the customer may more conveniently, efficiently and reliably auction the refinancing of a loan.
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patent: 5794207 (1998-08-01), Walker et al.
patent: 5940812 (1999-08-01), Tengel et al.
patent: 5966699 (1999-10-01), Zandi
patent: 6385594 (2002-05-01), Lebda et al.
patent: WO 99/59084 (1999-11-01), None
patent: WO 02/31727 (2002-04-01), None
Businerss Wire article entitled “Chase Joins the Lending Tree Network, Network Expands to More than30 Lenders to Meet Growing Needs; Consumer Demand Tops $2.2 Billion in Feb. Alone”, Mar. 30, 1999.
Brown Christopher C.
Lowenfield Cole W.
Chilcot Richard
Davis, Jr. Michael A.
Haynes and Boone, L L P
rateGenius, Inc.
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