Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1998-06-12
2003-01-07
Trammell, James P. (Department: 2161)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
Reexamination Certificate
active
06505176
ABSTRACT:
BACKGROUND OF THE INVENTION
1. Field of the Invention
The present invention relates generally to an Automated Credit Application System and more particularly to a workflow management system for an Automated Credit Application System.
2. Related Art
Processing loan and credit applications is a complicated process involving numerous tasks that must be completed in a particular order by banks and other lending institutions. Such tasks include filling out a loan application, verifying financial and employment information, checking credit reports from one or more credit bureaus, verifying collateral, making the loan decision and administrating the loan.
These tasks are generally performed by multiple groups within a lending organization. For example, loan officers typically work with applicants to complete the credit application. An underwriter or underwriter group decides whether to issue or “book” the loan based on information from the credit application, current business guidelines, and information from outside agencies, such as credit bureaus and the like. An administrative group distributes payment coupons, receives loan payments and handles other administrative tasks during the life of the loan.
Generally, each task involves many steps which are conventionally performed manually by various people and organizations within the lending institution. The necessary participation between various work groups makes it difficult to manage the complicated process of preparing credit applications in an efficient manner.
Recently, a new tool has become available to financial institutions that alleviates many of the problems brought about using conventional manual loan processing techniques. These automated credit application systems automate many of the tasks that have conventionally been performed manually.
One such example of an automated credit application system is CreditRevue® by CMSI of Columbia Maryland. CreditRevue automates the loan application process from the inception of the loan application to loan administration. All data is gathered and handled electronically throughout the entire lending process according to unique requirements of each lending institution.
For example, CreditRevue provides loan officers with an on-line credit application that is customized for each lending institution according to their specific requirements. Once a credit application has been entered into the automated system, CreditRevue typically communicates with one or more credit bureaus to retrieve credit reports on behalf of the loan applicant.
CreditRevue can then make a credit decision based on scoring rules and other criteria as required by the lending institution. For example, automated credit decisions can be generated using a combination of advanced credit bureau analysis, multiple scoring models and judgmental review. The automated system can also monitor lending policy guidelines to ensure compliance from both a regulatory and managerial standpoint.
In addition, CreditRevue can assist in loan administration and prepare loans for booking by verifying documents and contract details. The system can also automate the transfer of a booked application to the lending institution's servicing system.
As stated, each lending institution generally has unique requirements for processing loans. For example, decision making rules are generally different among lending institutions. Workgroups and workgroup responsibilities are unique for each lending institution. Steps used to process loan applications and the order in which these steps are processed vary widely among lending institutions. Many of these parameters are also subject to change within single lending institution.
Because of the unique and dynamic nature of loan processing requirements, it is very difficult to provide an automated credit application system that will satisfy the needs of multiple lending institutions. Accordingly, providers of such systems must customize their software in order to comply with the unique requirements of their clients. Customization typically involves changing and adding source code modules to the base automated credit application system, This causes a significant increase in cycle time for development and testing. Clearly this customization is extremely costly for both the system providers, the lending institutions and ultimately, the consumer.
Workflow management is one area of automation that is subject to much customization. In general, workflow management defines and manages the credit processing steps that are needed to complete a credit application. This includes identifying individuals and/or workgroups that are responsible for completing each step in the credit application process.
Generally, workflow requirements vary widely among lending institutions. For example, one organization may require that an underwriting group or individual make final loan decisions based on information reported by the automated system. Another organization may desire to allow the automated system to approve loans based on automated analysis of predetermined criteria.
In another example, it may be desired to automate the loan approval process but also allow certain exceptions to be made by authorized workgroups or individuals. In this example, certain items that would otherwise cause a loan to be rejected can be waived by one or more authorized individuals or work groups.
As stated, providers of automated credit application systems customize their software according to the unique workflow requirements of each lending institution. Conventionally, workflow management is hard-coded according to the needs of each lending institution. For example, CreditReveu uses named stations to implement the workflow management system. Each named station is associated with one or more physical workstations that are connected to the automated credit application system. As the workflow progresses, outstanding process steps are processed only at the named stations associated with the particular process step.
Using this conventional method, users are forced to go to one of these named stations to access the credit application and to perform functions thereon to complete the credit application. In this fashion, credit applications are transferred from one named station to the next, depending on which steps are to be completed next.
For example, during application entry, the credit application is only accessible at the workstations associated with one or more loan officers. Similarly, during the underwriting stage, the credit application is only accessible at the workstations in the underwriting group.
Generally, in order to move the application along, users are forced to manually complete the outstanding steps at the associated named station. Once the step or steps are complete, users manually transfer the application to the next named station according to the customized preprogrammed workflow. Using the conventional method, the workflow is isolated in this fashion, and the processing of credit applications is performed in a serial manner that cannot be altered without having to re-customize the automated credit application system's source code.
Therefore what is needed is a workflow management system that provides additional flexibility so that the workflow is not restricted to serial processing using preprogrammed named stations. In addition what is needed is a workflow management system that can be customized according to requirements of lending institutions without having to customize the source code each time the workflow requirements change.
SUMMARY OF THE INVENTION
Accordingly, the present invention is directed toward a workflow management system for an automated credit application system that is flexible and can be easily customized according to individual requirements of financial institutions. The steps and rule tests that define an organization's workflow are customized according to workflow requirements and process steps for each organization. This is accomplished using the present invention without having to develop and c
DeFrancesco, Jr. James R.
Fingerhuth Amy
Freiman Scott
Rusk Geoffrey
Terpening Steven
Elisca Pierre
First American Credit Management Solutions, Inc.
Sterne Kessler Goldstein & Fox P.L.L.C.
Trammell James P.
LandOfFree
Workflow management system for an automated credit... does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Workflow management system for an automated credit..., we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Workflow management system for an automated credit... will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-3057548