An original idea
By Matt Carter, Thursday, June 5, 2008.Bookmarking Sites
Can you patent a "computer-implemented system for enabling borrowers to anonymously shop for loan packages offered by a plurality of lenders"?
Sure you can -- if you're willing to stick with it for six years. Ask Jeff Lazerson, the founder of Mortgage Grader Inc.. He's just been granted U.S. Patent 7,366,694 for "an improved way for borrowers to shop for financing" over the Internet, whether it's a mortgage, a car loan, a credit card or a line of credit.
From the patent:
"...the present invention may be regarded as a method for reducing predatory lending when a borrower seeks financing. Personal information is obtained and recorded regarding the reasons that the borrower wants to obtain the financing. Loan evaluation information is obtained and recorded. ... A credit grading is determined for the borrower based on pre-established and objective criteria, the personal information and the loan evaluation information. The credit grading is performed by an entity that is not loaning money to the borrower."
Jack Guttentag recently "kicked the tires" at MortgageGrader.com, agreeing that Lazerson's system eliminated "all possibility of opportunistic pricing." While the site didn't always find the cheapest loan, it was in the ballpark in the comparisons Guttentag ran with "Upfront Mortgage Lenders" -- Guttentag's definition of online lenders who provide the information borrowers ned to comparison shop. The Mortgage Professor found the large amount of data MortgageGrader.com users are required to enter "irksome," but noted that should also improve the site's accuracy and reduce the liklihood of an adjustment later in the process.
Lazerson tells Inman News the next step in the evolution of MortgageGrader.com will be to completely automate rate locks and loan approvals, eliminating the loan officer and origination fee altogether (folks using MortgageGrader.com today pay a flat fee of about one point, or $2,000 in broker and processing fees on a $200,000 loan). We've also written about a sister site, FairClosingCosts.com, which Lazerson says will allow consumers, real estate and mortgage professionals to shop for settlement services.
Stay tuned to Inman News for a look at mortgage search tools that let consumers see wholesale loan prices and fees charged by originators.
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Submitted by Joe Cline on June 5, 2008 - 9:27pm.
Hmm. I hope that this isn't one of those "I patented the hyperlink/gif/jpeg/etc in 1990 so now I'm going to sue everyone using it."
I never did like generic-type patents, but I'll give the benefit of the doubt as this seems a bit more defined. Best of luck!
Joe
Austin Real Estate | Austin Real Estate Blog
Submitted by Marc Grayson on June 6, 2008 - 10:19am.
Know a lot of folks over at AT&T Bell Labs who have executed patents; timely, efficiently with huge corporate backing and in-house procedure.
Any individuals or groups of entrepreneurs who stick out the patent process, never losing sight of their vision or their dream, should be applauded. Jeff, my hats off to you!