1. Field
The present invention relates to home equity lines of credit (HELOC) and more particularly to a method and apparatus for generating outcome predictions for a HELOC.
2. Related Art
In the mortgage industry, the decision-making process of whether or not to grant a HELOC to a borrower may depend on a number of factors such as the borrower's income, amount of equity in the home, etc. Banks and lending institutions must ensure that the primary mortgage in combination with the HELOC do not provide an unacceptably high risk that the loans will be defaulted on. Current methods for measuring this risk involve ineffective, unsubstantiated, paper review programs that fail to produce meaningful assessments for lenders and purchasers of loans. Thus, there is a need for a cost-effective and accurate method for quantifying risk associated with a HELOC.