CA2595172A1

CA2595172A1 - Methods and systems for financing expenses with a loan secured by real property

Info

Publication number: CA2595172A1
Application number: CA002595172A
Authority: CA
Inventors: John J. Pembroke
Original assignee: Individual
Current assignee: Individual
Priority date: 2005-01-18
Filing date: 2006-01-18
Publication date: 2006-07-27
Also published as: EP1846887A2; WO2006078793A3; WO2006078793A2

Abstract

Methods and systems provide a loan to a borrower. An identification of real property and a specification of a monetary amount to be used for future payment of expenses is received. A total loan value for the real property and the specified monetary amount is calculated. Approval of the loan secured by the real property for the total loan value is requested. A closing is initiated on the loan at which a customer depository account is funded with the specified monetary amount to provide future funds for payment of expenses incurred by the borrower.

Description

METHODS AND SYSTEMS FOR FINANCING EXPENSES WITH A
LOAN SECURED BY REAL PROPERTY
CROSS-REFERENCES TO RELATED APPLICATIONS

[0001] This application claims priority to each of the following U.S. Patent Applications: U.S. Pat. Appl. No. 11/039,367, entitled "METHODS AND SYSTEMS
FOR
FINANCING EXPENSES WITH A LOAN SECURED BY REAL PROPERTY," filed January 18, 2005 by John J. Pembroke; U.S. Pat. Appl. No. 11/039,387, entitled "METHODS
AND SYSTEMS FOR FINANCING HEALTHCARE EXPENSES WITH A LOAN
SECURED BY REAL PROPERTY," filed January 18, 2005 by John J. Pembroke; U.S.
Pat.
Appl. No. 11/077,990, entitled "METHODS AND SYSTEMS FOR FINANCING FOOD
EXPENSES WITH A LOAN SECURED BY REAL PROPERTY," filed March 11, 2005 by John J. Pembroke; U.S. Prov. Pat. Appl. No. 60/704,177, entitled "COORDINATION
OF
ACCESS TO HEALTHCARE PROVIDERS," filed July 28, 2005 by John J. Pembroke; and U.S. Prov. Pat. Appl. No. 60/701,735, entitled "NETWORK SECURITIZATION," filed July 22, 2005 by John J. Pembroke.

BACKGROUND OF THE INVENTION

[0002] This application relates generally to real-property mortgages. More specifically, this application relates to methods and systems for financing food expenses with a loan secured by real property.

[0003] Typical property owners have a number of expenses. A common ordering of their living costs for property owners in order of expense is: their home mortgage payment, food, healthcare, energy, and telecommunications. Of these five principal expenses, only the mortgage payment provides financing over an extended period of time. The other expenses are paid as they are incurred and may be subject to substantial variations as a result of external impacts, such as when world events affect the availability, and therefore the cost, of energy sources. Cost spikes in certain sectors force many homeowners with tight budgets into circumstances where they need to decide which of their principal expenses to meet, and which to default on. In many instances, this may result in mortgage-loan defaults, an occurrence disadvantageous both to the property owner and to the lender.

[0004] For example, it is commonly known that medical and healthcare expenses are increasing rapidly. Currently, the average premium for a family medical insurance policy in the United States is $9086/year. The average annual out-of-pocket expenses for healthcare in the United States is $2664. Medicare managed-care plans will pay an estimated $1964 in average annual out-of-pocket expenses. On average, seniors spend about $2300 per year on medicines and drugs. While these costs are already high, they are also increasing at rates that generally exceed average inflation rates, making their impact even more significant.
Furthermore, the impact of these costs may sometimes take the form of a sudden unexpected cost that arises as a result of an unanticipated illness or accident.

[0005] It is also commonly known that food expenses already form a significant portion of fainily budgets and are continuing to increase. Currently, the average cost for food for a family is approximately $4300/year, with about $2700 of that spent on food consumed at home and $1600 of that spent on food consumed away from home. Expenses for food amount to about 12% of the typical family budget. In many instances, the high cost of food affects the quality of food that people consume as they seek ways to lower the cost of food so that they may meet other expenses.

[0006] There is, thus, a general need in the art for methods and systems that mitigate the effect of these costs.

BRIEF SUMMARY OF THE INVENTION

[0007] Embodiments of the invention provide methods and systems for providing a loan to a borrower. In a first set of embodiments, an identification of real property and a specification of a monetary amount to be used for future payment of expenses is received. A
total loan value for the real property and the specified monetary amount is calculated.
Approval of the loan secured by the real property for the total loan value is requested. A
closing is initiated on the loan at which a customer depository account is funded with the specified monetary amount to provide future funds for payment of expenses incurred by the borrower.

[0008] In some such embodiments, a set of limitations is received defining expenses that qualify for payment with funds in the customer depository account.
Restrictions on witlidrawal of funds from the customer depository account are initiated in accordance with the limitations. For example, the set of limitations may define one or more specific merchants at which goods and/or services must be purchased to qualify for payment with funds in the customer depository account.

[0009] In some instances, issuance of a debit instrument to the customer may be initiated. The debit instrument may be used at a point of sale to debit the customer depository account as part of a debit transaction for payment of the expenses. Merely by way of example, the debit instrument may comprise a magnetic-stripe card or may comprise a smart card.

[0010] Some embodiments may additionally accommodate additional specification of products and/or services distinct from the monetary amount to be used for future payment of expenses. Calculation of the total loan value comprises calculating the total loan value for the real property, the specified monetary amount, and the additional products and/or services.
The customer depository account is funded with the specified monetary amount and a supplementary monetary amount for payment of expenses for the additional products and/or services. In one such embodiment, the customer depository account comprises a plurality of customer depository accounts, each of which is identified with a distinct subset of the products and/or services and the monetary amount to be used for fu.ture payment of expenses;
a transfer of funds may be effected among at least some of the plurality of customer depository accounts. In another such embodiment, the customer depository account is segregated for separate tracking of funds identified with distinct subsets of the products and/or services and the monetary amount to be used for future payment of expenses; an identification of the funds among the distinct subsets may be changed.

[0011] In some embodiments, the loan may also be secured by the specified products and/or services. Approval of the loan may comprise initiating an appraisal of the value of the property with the specified products and/or services and calculating a back-end ratio that omits consideration of separate payment of the expenses by the borrower. The funds in the customer depository account may be designated as a prepaid asset linked with the real property, whereby the funds in the customer deposit account comprise a real-property interest. In one embodiment, the specification of products and/or services comprises a specification of a term for the products and/or services.

[0012] The loan may be any number of different types of loans secured by real property in different embodiments. For example, in one embodiment, the loan comprises a mortgage, and the borrower is a buyer of the real property. In another embodiment, the loan comprises a refinance mortgage and the borrower is an owner of the real property. In a further embodiment, the loan comprises a home-equity loan or a home-equity line of credit and the borrower is an owner of the real property.

[0013] At least some of the expenses may comprise recurring expenses, with payment of the recurring expenses being initiated when due. In some instances, at least some of the expenses comprise periodic expenses; in such instances, the method may further comprise periodically initiating payment of the periodic expenses. In some cases, foreclosure may be initiated against the real property and against the customer depository account in response to a default by the borrower on terms of the loan. Foreclosed funds in the customer depository account may be directed to be paid to the lender or supplier of the products and/or services.
Embodiments of the invention may permit a value of the customer depository account to be increased by depositing additional funds by the borrower or a third party after closing into the customer depository account; this has the effect of extending a useable term of the customer depository account for payment of the expenses. The customer depository account may comprise a plurality of customer depository account, each being identified with a distinct subset of the specified products and/or services. A transfer of funds may thus be effected among at least some of the plurality of customer depository accounts. In other instances, the customer depository account may be segregated for separate tracking of funds identified with distinct subsets of the specified products and/or services. This permits an identification of the funds among the distinct subsets to be changed.

[0014] In a second set of embodiments, an identification of real property and a specification of products and/or services providing expenses is received. A
total loan value for the real property and specified products and/or services is calculated.
Approval of the loan secured by the real property for the total loan value is requested. A
closing on the loan is initiated at which a customer depository account is funded to provide future funds for payment of the expenses. Issuance of a debit instrument to the customer is initiated, with the debit instrument usable at a point of sale to debit the customer depository account for payment of the expenses.

[0015] In some embodiments, the loan may also be secured by the specified products and/or services. In one embodiment, an appraisal of the value of the property with the specified products and/or services is initiated, and a back-end ratio that omits consideration of separate payment of the expenses by the borrower is calculated. Funds in the customer depository account may be designated as a prepaid asset linked with the real property, whereby the funds in the customer depository account comprise a real-property interest. In some embodiments, foreclosure against the real property and against the customer depository account may be initiated in response to a default by the borrower on terms of the loan.

[0016] In other embodiments, payment of a guarantee amount defined by a remaining value of the products and/or services may be initiated to a lender of the total loan value in response to a default by the borrower on terms of the loan. Alternatively, a transfer of ownership of the real property and a transfer of obligations under the loan may be initiated to a guarantor in response to a default by the borrower on terms of the loan. In some instances, a transfer of the customer depository account to a new buyer of the real property may be initiated. In other instances, a transfer of the customer depository account to a new property purchased by a current owner of the real property may be initiated after a sale of the real property. Provision may be included for increasing a value of the customer depository account by depositing additional funds after closing into the customer depository account, thereby extending a useable term of the customer depository account for payment of the expenses.

[0017] The customer depository account may comprise a plurality of customer depository accounts, each of which is identified with a distinct subset of the products and/or services, so that a transfer of funds among at least some of the plurality of customer depository accounts may be effected. Alternatively, the customer depository account may be segregated for separate tracking of funds identified with distinct subsets of the products and/or services, so that an identification of the funds among the distinct subsets may be changed.

[0018] In a third set of embodiments, an identification of real property and a specification of medical and/or healthcare services is received. A total loan value for the real property and specified medical and/or healthcare services is calculated.
Approval of the loan secured by the real property for the total loan value is requested. A closing on the loan at which a customer depository account is funded to provide future funds for payment of expenses for the medical and/or healthcare services is initiated. Issuance of a debit instrument to the customer is initiated and may be used to debit the customer depository account for payment of the medical and/or healthcare expenses.

[0019] In a fourth set of embodiments, methods and systems are provided for coordinating an electronic healthcare application request between a healthcare purchaser and at least one of a plurality of healthcare providers. Selection criteria are received from the plurality of healthcare providers. Personal information is received from the healthcare purchaser at a coordination system over a public network. The personal information is filtered to identify the at least one of the plurality of healthcare providers. Each of the at least one of the healthcare providers has selection criteria consistent with the personal information.
The personal information is transmitted over the public network to a computer system operated for the at least one of the plurality of healthcare providers.

[0020] In some instances, the personal information comprises health information.

[0021] In one embodiment, the personal information is transmitted over the public network to an actuary system. An actuarial score is received from the actuarial system. The personal information is filtered to ensure that the actuarial score is consistent with the selection criteria of the at least one of the healthcare providers. Proposed terms for a relationship with the healthcare purchaser may be received from the at least one of the plurality of healthcare providers. A display may be generated for the healthcare purchaser to evaluate the proposed terms. In some instances, a modification of the proposed terms may be received for the relationship based on additional information.

[0022] In certain embodiments, these methods are used in combination with a mechanism for financing healthcare expenses using a loan secured by real property. An identification of real property financed by the healthcare purchaser is received. A total loan value for the real property and specified healthcare costs is calculated, and a loan secured by the real property for the total value is initiated.

[0023] Also, in some embodiments a debit instrument may be issued to the healthcare purchaser. The debit instrument may be used at the at least one of the plurality of healthcare providers as part of a debit transaction for payment of healthcare products and/or services.

[0024] In a fifth set of embodiments, methods and system are provided of securitizing a networlc to a group of homes. In a first set of embodiments, an identification of real property for one of the homes is received. A total loan value is calculated for the real property that includes a network access charge representing a unit cost for establishing a network connection from the real property to a network operations center to access telecommunications services and includes an activation cost for activating the network connection. A loan secured by the real property for the total loan value is initiated.

[0025] In some such embodiments, issuauce of an investment coupon is initiated to an investor to generate funds to finance costs for establishing the network. The investment coupon may include an undivided interest in the network and may be issued according to a first-in-first-out formula. The investment coupon may be issued for a cost approximately equal to the unit cost. Redemption of the investment coupon may also be initiated, such as in response to closing the loan.

[0026] In some instances, the unit cost comprises a cost for establishing a network connection from the real property to a local distribution center and a cost for establishing a network connection from the local distribution center to the network operations center. The telecommunications services may comprise voice, video, data, and home-security services.

[0027] Different types of networks may be securitized in different embodiments of the invention. For example, in some embodiments, the network comprises a fiber network and the network connection comprises a fiber network connection, while in other embodiments, the network conlprises a high-speed wireless network and the network connection comprises a high-speed wireless connection.

[0028] In a second set of embodiments, issuance of a plurality of investment coupons is initiated to investors to generate funds to finance costs for establishing the network. Each of the investment coupons includes an undivided interest in the network.

[0029] The investment coupons maybe issued according to a first-in-first-out formula. Redemption of at least one of the investment coupons may also be initiated, such as in response to closing a loan for purchase of one of the homes.

[0030] These embodiments may also accommodate different types of networks, with the network comprising a fiber network in some embodiments and comprising a high-speed wireless connection in other embodiments.

[0031] The methods of the present invention may be embodied in a computer-readable storage medium having a computer-readable progranl embodied therein for directing operation of a computer system. Such a computer system may include a communications system, a processor, and a storage device. The computer-readable program includes instructions for operating the computer system to provide a loan to a borrower in accordance with the embodiments described above.

BRIEF DESCRIPTION OF THE DRAWINGS

[0032] A further understanding of the nature and advantages of the present invention may be realized by reference to the remaining portions of the specification and the drawings wherein like reference numerals are used throughout the several drawings to refer to similar components.

[0033] Fig. 1 provides a schematic illustration of a functional environment in which a bundling company operates in accordance with embodiments of the invention;

[0034] Fig. 2 is a flow diagram illustrating a method for financing expenses with a loan secured by real property in a first embodiment;

[0035] Figs. 3 and 4 are flow diagrams illustrating methods for financing expenses with a loan secured by real property in otlzer embodiments of the invention;

[0036] Fig. 5 is a flow diagram illustrating a method for obtaining an appraisal in concert with the methods of Figs. 2- 4 in some embodiments;

[0037] Fig. 6 is a flow diagram illustrating the effect of default on a loan that finances expenses in accordance with embodiments of the invention;

[0038] Fig. 7 is a flow diagram illustrating the use of a debit instrument to purchase goods and/or services with funds from an account secured by real property;

[0039] Fig. 8 is a schematic block diagram illustrating the structure of a computer system on which methods of the invention may be embodied;

[0040] Fig. 9 is a schematic illustration of a structure that may permit embodiments of the invention to coordinate access to healthcare providers;

[0041] Fig. 10 is a flow diagram illustrating performing validation checks as part of the methods of the invention;

[0042] Fig. 11 is a flow diagram illustrating obtaining an actuarial score as part of the methods of the invention;

[0043] Fig. 12 illustrates how criteria may be matched with purchaser data to identify suitable healthcare providers;

[0044] Fig. 13 is a flow diagram illustrating how information may be filtered and transferred to healthcare providers in some embodiments of the invention;

[0045] Fig. 14 is a schenlatic diagram of a structure that may be used for deployment of telecommunications over a fiber-optic network in some embodiments; and [0046] Fig. 15 is a flow diagram illustrating a method for financing fiber-optic costs in an embodiment.

DETAILED DESCRIPTION OF THE INVENTION
1. Expense Financing [0047] Embodiments of the invention increase consumer buying power and insulate consumers from dramatic price fluctuations by providing a loan secured by real property that may be used to finance certain products and services. In some instances, security for the loan may be provided by the real property and some other property, such as by a cash value of specified products and services in one embodiment. Some of the products and services that may be financed provide "recurring expenses," which is used herein to refer to expenses that occur more than once and are not satisfied by single payments. In some instances, the recurring expenses include "periodic expenses," which are expenses that arise on a regular repeatable basis, such as payments that are to be made every month, every quarter, every year, or on some other periodic timetable. Other products and services that may be financed provide "fixed expenses," which are one-time expenses paid to a supplier.

[0048] Examples of products and services that give rise to recurring expenses include the following, which may be categorized broadly as encompassing "voice"
products and services, "video" products and services, "data" products and services, "audio"
products and services, "communications" products and services, "utility" products and services, "security"
products and services, "healthcare" products and services, "insurance"
products and services, and "savings" products and services, among others. For instance, voice products and services may include telephone service, mobile-telephone service, voice-over-IP
("VoIP") service, and the like. Video products and services may include television rentals, video-on-demand service, video-gaming service, video conferencing service, and the like. Data products and services may include broadband, dial-up Internet access, text messaging, and the like. Audio products and services may include music-on-demand services and the like.
Cominunications products and services may include structured wire, optical fiber, wireless, wireline (including cable, coax, etc.), Ethernet, and satellite services, among others. Utility products and services may include energy products such as natural gas and electricity, water service, waste-disposal service, and the like. Security products and services may include home-security services, monitoring services, and the like. Home products and services may include homeowner association dues, lawn care, special assessments, and the like. Healthcare products and services may include healthcare programs, physician and hospital services, long-term care assistance programs, meal-delivery services, and the like. Insurance products and services may include home insurance, automobile insurance, umbrella insurance, and the like. Merely by way of example, utility services that require payment on a nionthly basis are examples of services that result in recurrent periodic expenses. Conversely, video-on-demand services, which result in an irregular expense when the video is demanded, are an example of services that result in recurrent expenses that are nonperiodic.

[0049] In certain specific embodiments, consumers are insulated from the effects of high, and increasing, medical and healthcare costs by providing a loan secured by real property that may be used to fmance medical and healthcare services. In some instances, security for the loan may be provided by the real property and some other property, such as by a cash value of the medical and healthcare services in one embodiment.
Examples of medical and healthcare expenses include fees for physician services and the services of other medical practitioners, including both general practitioners and specialists;
dental, vision, and chiropractic services; medical and healthcare insurance policies and premiums;
prescription and nonprescription drug costs, as well as the costs of other medical products such as syringes; hospital, nursing home, and extended-care facilities fees; fees for in-home long-term care; healthcare savings programs, and the like. Merely by way of example, monthly premiums paid for insurance coverage are examples of medical and healthcare services that result in periodic expenses, while fees for physician services that result from sudden illness or accidents are examples of medical and healthcare fees that might be recurring even if not periodic.

[0050] In other specific embodiments, consumers are insulated from the effects of food costs by providing a loan secured by real property that may be used to finance food expenses through a food-financing program. In some instances, security for the loan may be provided by the real property and some other property, such as by a cash value of the food=
financing program in one embodiment. Some of the food expenses that may be financed include food that is purchased for consumption at home, such as when food is purchased from a grocery store, specialty food store, convenience store, or the like. In other instances, the food expenses arise from the purchase of food for consumption elsewhere, such as in a restaurant or other food-selling venue.

[0051] The secured loan is provided in embodiments of the invention by a "bundling lender," which is any entity that provides a real-estate-secured loan that bundles at least some expenses as part of a financing program. Examples of entities that may be comprised by the bundling lender include mortgage brokers, mortgage bankers, commercial banks, finance companies, credit unions, insurance companies, stock brokerage firms, and individual investors; it is not necessary according to embodiments of the invention that the bundling lender be associated with a financial institution. The bundling of the expenses is coordinated by a bundling company, which interacts with the bundling lender. An overview of an environment in which the bundling company may operate in structuring the loan is illustrated schematically with the block diagram of Fig. 1, with the environment denoted generally by reference number 101. The description that follows is relatively generic, referring to how embodiments of the invention may operate for financing a variety of types of goods and/or services. Specific examples are presented later, illustrating specific applications for certain types of financed goods and services.

[0052] The bundling company 102 may comprise any entity that offers bundleable expenses to be included in a loan and/or that facilitates the marketing or sale of bundleable expenses. Examples of bundling companies in certain specific embodiments include suppliers of products and services, mortgage bankers, mortgage brokers, real estate agents, real estate brokers, builders, land developers, financial planners, or various facilitators such as independent marketing entities, title companies, insurance companies, appraisers, etc. The bundling company 102 may have relationships with one or more suppliers 104, although more generally embodiments of the invention permit the bundled service to be used for payment of any expenses as described below. The bundling company 102 may negotiate discounted prices for the expenses, using its position as an interface to large volumes of such expenses for many potential customers to obtain very favorable prices. For instance, the bundling company 102 might negotiate with a chain of supermarkets or a chain of restaurants to provide discounts of 5% or 10% on all food costs to customers who bundle food expenses as described herein. Such an arrangement may act as an incentive to attract greater numbers of customers to the supermarket or restaurant chains that enter such agreements. Similarly, the bundling lender 112 may negotiate discounted prices for medical and healthcare services, using its position as an interface to large volumes of such medical and healthcare services for many potential customers to obtain similarly favorable prices.

[0053] As described in more detail below for various embodiments, the bundling company 102 may then offer funds to be drawn on for payment of the expenses to a buyer 110 or seller 111 of real property. The offered prices for the expenses may be customary rates, at less than customary rates, and may include a transaction charge. The buyer and/or seller are sometimes referred to interchangeably herein as "consumers,"
"customers,"
"borrowers," or "clients," each of which may also refer generally to a homeowner, homebuyer, homebuilder, land developer, home seller, property owner, renter, or tenant, among others. In addition to interacting with the seller 111 and buyer 110, the bundling company 102 may interact with a number of other entities, examples of which include the suppliers 104, appraisers 116, and one or more bundling lenders 112, who actually provide the loan.

[0054] The bundling company may maintain a customer depository account 114, where the funds to be used in making payment for the expenses in accordance with the financing program are maintained, although in some embodiments the customer depository account may be maintained by a separate institution. There are a number of different ways in which funds in the customer depository account 114 may be accessed by the buyer to make payment for expenses. A convenient mechanism includes use of a debit instrument 120 issued to the buyer that the buyer may present when making purchases. For instance, the debit instrument could comprise a card, such as a magnetic stripe card or smart card that has information identifying the buyer 110 and the customer depository account 114 encoded on the card. Payment is then coordinated by a debit processor 118 when purchases are made. In other instances, the buyer 110 might be provided with a set of checks that may be used to draw funds from the customer depository account 114 for purchases.
Alternatively, the buyer 110 may be permitted to make withdrawals from the customer depository account, such as in the form of coupons usable at the suppliers 104 or to provide reimbursement for previously paid expenses upon production of suitable receipts.

[0055] Various methods of the invention are illustrated for different embodiments with the flow diagrams of Figs. 2- 7. The method illustrated with Fig. 2 may be used in one embodiment when a seller 111 sells real property to a buyer 110. In response to the seller 111 offering the real property for sale to the buyer 110 at block 204, the buyer contacts a bundling company 102 at block 206 to coordinate funding a customer depository account 114 to support payment of the expenses and a loan for purchasing the real property with the bundleable expenses included. In some instances, the contact with the bundling company 102 may conveniently proceed through another third party. Also, the buyer 110 may conveniently use a variety of different sources for identifying a bundling company 102, including computer networks, the Internet, computer software tools, and other electronic media. The bundling company 102 identifies a number of optional products/services, and related financing programs, at block 208 so that a selection of the desired program may be made by the buyer 110 at block 210.

[0056] At block 212, a bundling lender 212 is contacted for solicitation of a bundled loan for the real property with the selected program. The cost presented to the buyer 110 may incorporate the value of the selected expenses into the cost or may alternatively include a separate listing of the cost for the bundleable program. In either instance, the bundling lender 112 may consider the cost or value of the selected program when qualifying the buyer 110 for the loan. In some embodiments, qualifying the buyer 110 may comprise obtaining an appraisal of the real property with the selected expenses as indicated at block 214, but this is not necessary in other embodiments. The appraisal may be obtained by the buyer 110, by the bundling lender 112, or by a bundling company 102 in different embodiments. If the buyer 110 qualifies for the loan, it is approved by the bundling lender 112 at block 216.

[0057] In determining whether to approve the loan request, the bundling lender may calculate a "back-end ratio" as a measure of the borrower's ability to repay the loan using techniques known in the art. A high back-end ratio may disqualify a borrower from obtaining a loan. Embodiments of the invention advantageously lower the back-end ratio by eliminating certain borrower payments related to expenses. For example, by financing the borrower's expenses in a loan, the back-end ratio may be reduced, permitting the borrower to qualify for a larger loan amount. Lowering the back-end ratio also advantageously permits the bundling lender to modify its underwriting procedures, making the borrower's loan qualification easier. It also permits the lender to structure and offer new loan products that are based on this ability to lower the back-end ratio and other defaulting events. In particular, this capability is advantageous in structuring new loan products that may be attractive for sale in the secondary mortgage marketplace. Embodiments of the invention also advantageously expand the ability of bundling lenders to make new types of loans to new borrowers and to enter new markets by developing active partnerships with restaurants, grocery stores, and other suppliers.

[0058] When the loan is to close, as indicated in the drawing generically by blocks 218, the buyer 210 typically supplies a down payment at block 220, although in some embodiments the loan might be provided without a down payment. The bundling lender 112 supplies the remainder of the total cost for the real property, plus the money to fund the program, as indicated at block 222. The cost of the real property is delivered to the seller 111 at block 224, and the remainder of the loan amount is deposited into the customer depository account 114 at block 228. As indicated at block 229, the buyer may also be issued a debit instrument such as a magnetic-stripe card, smart card, or other type of instrument used in identifying the customer depository account to make purchases consistent with terms of the program.

[0059] The customer depository account 114 may comprise any suitable account, such as a trust account, an interest-bearing account, an insurance account, or a bank account, and in some embodiments the customer depository account 114 may comprise a plurality of accounts, which may be maintained by a plurality of different institutions. In some instances, separate customer depository accounts may be provided for different classes of expenses (e.g.
for healthcare expenses, for utility expenses, for food expenses, etc.) or a single customer depository account may be segregated for separate tracking of different classes of products.
Once the funds have been received in the customer depository account 114, the bundled program is assigned to the sold property, rather than to the borrower, and becomes an asset of the property, thereby conferring on it the status of a real-property interest.
The funds in the customer depository account 114 may thereafter be used to make payments for the bundled expenses. The bundling lender 112 may be issued a document entitling the bundling lender 112 to foreclose on the customer depository account upon a default of the bundling loan by the borrower. The document typically identifies the funds being held in the customer depository account 114, as well as designating the funds as a "prepaid asset"
of the property.
The bundling lender 112 and/or buyer 110 are generally provided with the ability to obtain via telephone and/or electronic mechanisms the current cash balance in the customer depository account.

[0060] The total loan amount includes the amount of payments for the future expenses used in supporting the bundled expenses. The future payment amount for payments on both the bundled expenses and on the property are amortized over the term of the loan.
The loan term may advantageously have a term as long as 30 years (or even as long as 40 years in the case of some real-property loans). This is in contrast to consumer loans, which usually have terms of less than five years. In addition, using a structure that has a real-property loan with a real-property interest may provide tax advantages, such as in the United States where interest on real-property loans may be tax deductible. It is noted that this benefit is a consequence of the designation of the prepaid assets as real-property interests. In the United States, Freddie Mac and Fannie Mae were chartered by Congress to provide liquidity to the mortgage banking industry and are purchasers of more than 90%
of the mortgage loans that originate in the U.S. In their charter, Freddie Mac and Fannie Mae could only purchase loans from mortgage banks that are real property and that do not include personal property. This is why a stand-alone television could not be financed within a mortgage, but a home theatre could. In response to consumer demand and a request from the National Association of Realtors, Freddie Mac designated certain appliances as providing a "real-property interest," that permits their cost to be financed with a mortgage loan.

[0061] After closing, the buyer makes periodic payments to the bundling lender at block 230, similar to conventional mortgage payments. These payments may be made monthly, biweekly, or according to some other arrangement. In some embodiments, additional principal payments may also be accepted with the periodic payments to the bundling lender. The payments for the expenses are made from the customer depository account at block 232. In embodiments where a debit instrument 120 has been provided to the buyer, such payments may be made in the form of a debit transaction at a point-of-sale, such as is described further in connection with Fig. 7 below. The duration of the useable period of the bundled expenses may be more or less than the original term. For example, the borrower may purchase more products/services as a result of changes in family circumstances, resulting in more funds being withdrawn from the customer depository account 114. In this instance, the usable term of the bundled expenses would be less than the initial term because the customer depository account will be depleted faster than initially planned. Coiiversely, the borrower may use purchase less products/services, resulting in fewer funds being withdrawn from the customer depository account. In that case, the term of the bundled expenses is longer than the initial term because the funds in the customer depository account 114 will last longer. As indicated at block 234, funds may sometimes be added to the customer depository account to lengthen the usable term of the bundled expenses. Funds may be added by the buyer in some embodiments, or may be added by other entities such as the bundling company 102 or by the bundling lender 112 as part of a variety of possible incentive programs. In some embodiments where separate tracking for different classes of products is provided through the use of a segregated account or through the use of a plurality of accounts, transfers between the different classes may be enabled.

[0062] A similar method may be implemented in embodiments where an existing homeowner wishes to refinance an existing mortgage or wishes to take a home-equity line of credit secured by the real property. These embodiments are illustrated with the flow diagram of Fig. 3 and have a number of aspects in common with aspects of the invention described in connection with Fig. 2. The homeowner contacts the bundling company 102 at block 304 or block 306 depending on the embodiment, again having the ability to make use of a variety of different informational tools to identify the bundling lender and perhaps making contact through a third party. Block 304 applies to homeowners seeking to refinance existing mortgages and block 306 applies to homeowners seeking a home-equity line of credit.
Home-equity lines of credit are loans in which the borrower secures the loan with real property. They provide borrowers with long-term financing at attractive interest rates when compared with consumer loans that have relatively short terms and much higher interest rates. They differ from mortgages, which are used to finance the purchase of real estate.
Highly developed markets exist for both mortgages and home-equity lines of credit, with lender being compensated with interest on the principal that is lent. , [0063] In either instance, the bundling company 102 may identify a number of products/services that may be bundled with the loan at block 308, the different options permitting different terms, different types of products/services, limitations on suppliers, etc.
The borrower selects that program he wishes to include with the loan at block 310, including specification of a term for the program if appropriate. A bundling lender 112 is contacted at block 312 with a request to provide a bundled loan for the real property and the selected program. The total loan cost is determined by amortizing the cost of both the underlying loan and the cost of the selected program. An optional appraisal may be obtained at block 314, with the loan being approved by the bundling lender at block 316 if the borrower meets the loan requirements.

[0064] At closing 320, the bundling lender 112 provides the refinancing or home-equity line of credit at block 324 and deposits funds into the customer depository account 114 at block 328. The bundling lender 112 is provided at closing with a document asserting its right to foreclose against the customer depository account 114 as well as against the real property itself in the event of a default. The homeowner may be provided with a debit instrument such as a magnetic stripe card or smart card at block 329 to simplify accessing the customer depository account 114 in making purchases. After closing, the relationship between the borrower and bundling lender is similar to that described above.
The borrower makes periodic payments to the bundling lender as indicated at block 330 and payments for the expenses are made from the customer depository account as indicated at block 332, perhaps involving presentation of the debit instrument as described below in connection with Fig. 7. Similar to the embodiments described in connection with Fig. 2, the usable term of the bundled expenses may be longer or shorter than initially planned, depending on the rate at which the funds are used. A provision is therefore provided at block 334 to permit funds to be added to the customer depository account to extend its usable term, either by the borrower or by another entity such as the bundling company 102 or bundling lender 112 in different embodiments.

[0065] Fig. 4 provides a similar flow diagram, but reflects aspects of the invention relevant to land development by a builder. This embodiment provides an example where one of the parties to the sale transaction for real property acts as the bundling company with the builder taking on this role, although in alternative embodiments a separate bundling company may work with the builder and buyer. The builder generally provides new construction, offering the sale of real property to a buyer at block 402. Because the builder is providing new construction, the range of options that may be provided as part of the construction is diverse. Traditional fixed-cost options that may be offered include such enhancements as wood cabinetry, granite countertops, gold bathroom fixtures, upgraded carpet, and the like.
In addition, the builder may in some embodiments include a products/services financing program as part of the standard purchase arrangement. For instance, in one embodiment, the builder may advertise that the sale of each home includes, as standard, five years of grocery payments at Safeway and may offer options to provide certain other food costs at the option of the buyer - these may be marketed as "upgrades" and may include such things as five years of restaurant payments or permitting the grocery payments to be made to other grocery suppliers of food. The standard items are identified to the buyer at block 404 and the optional programs are identified to the buyer at block 406.

[0066] In response to the buyer making a selection of a desired program at block 408, the sale cost is updated at block 410 by amortizing the total cost of both the standard and upgrade aspects. The bundling lender 112 is contacted at block 412, either by the buyer, by the builder, or through another third party, and asked to provide terms for a loan to purchase real property with the selected program, as well as any other options that may have been selected. The bundling lender 112 performs an analysis to determine whether to approve the loan, and performing that analysis may sometimes include obtaining an appraisal of the property with the selected program at block 414. Approval of the loan by the bundling lender is indicated at block 416 and, as previously noted, may comprise calculation of a back-end ratio that accounts for the reduction in expenses faced by the borrower as a result of their bundling with the loan.

[0067] Closing is denoted generally by blocks 418. As part of closing on the loan, the buyer may supply a down payment at block 420, although in some embodiments the loan may close without any down payment. The bundling lender 112 supplies the remainder of the cost for purchase of the real property as well as for financing the costs of the selected expenses at block 422. The cost of the real property is delivered to the builder at block 424 and the remainder of the loan amount is deposited into the customer depository account 114 at block 428. The bundling lender 112 is also provided with documentary authority to foreclose on the customer depository account as well as on the real property in the event that the borrower defaults. In addition, in some embodiments, the buyer may be provided with a debit instrument at block 429; such a debit instrument advantageously permits purchases to be supported directly be the customer depository account at the point of sale over existing debit networks by identifying the customer depository account 114.

[0068] After closing 418, the builder is no longer involved. The buyer makes periodic payments to the bundling lender 112 at block 430 to satisfy his obligations under the loan arrangement. Payments for expenses are made at block 432 from the customer depository account 114, perhaps using the debit instrument provided at block 429. As previously noted for other embodiments, the length of time that the customer depository account may cover expenses may vary, depending on how much is actually spent in satisfying those expenses. In cases where the term that the account covers is less than originally expected, a mechanism may exist in some embodiments to add additional funds to the customer depository account at block 434, such as by the buyer or by another entity like the bundling company or bundling lender.

[0069] In some cases, for any of the embodiments described in connection with Figs.
2- 4, the owner of real property that secures a loan that bundles a products/services financing program may wish to sell the property. The funds in the customer depository account may be treated in a number of different ways in different embodiments. For instance, in some cases, the owner may transfer the funds from the customer depository account to a subsequent buyer of the property. In other cases, the owner may transfer the funds to a new property that the owner purchases.

[0070] The descriptions of certain embodiments of the invention above are not intended to be exhaustive and may be accommodated within a wide range of lending products. For example, the loan may comprise any of the following in different embodiments: a first mortgage secured by the property and perhaps also by the cash value of the products/services financing program; a second mortgage secured by the property and perhaps also by the cash value of the products/services financing program; a third mortgage secured by the property and perhaps also by the cash value of the products/services financing program; a refinanced mortgage secured by the property and perhaps also by the cash value of the products/services financing program; a home-equity loan secured by equity in the real property and perhaps also by the cash value of the products/services fmancing program; a home-equity line of credit secured by equity in the real property and perhaps also by the cash value of the products/services financing program; a construction loan secured by the real property and perhaps also by the cash value of the products/services financing program; and a personal note secured by the real property and perhaps also by the cash value of the products/services financing program. In some instances, a plurality of loans may be used to finance the expenses, such as when they are financed through a first and second mortgage.

[0071] Each of the descriptions of Figs. 2- 4 above have noted that in some instances an appraisal may be sought, such as part of the loan-qualification process. An overview of methods that may be used to perform an appraisal in provided with the flow diagram of Fig.
5. This method illustrates how the effect of bundling costs with the loan may be accommodated as part of the appraisal. It is noted that in some embodiments the real property that is the subject of the appraisal may already have a customer depository account associated with it and classified as a prepaid asset of the property. This is true, for instance, in some embodiments described in connection with Fig. 2 where an existing home might be sold to a new owner. Such a pre-existing customer depository account may be used for payment of expenses or could be used for payment of other types of expenses like those described in detail in the related and parent applications.

[0072] At block 504 of Fig. 5, an appraiser 116 receives an order for an appraisal, usually from a bundling lender or from a borrower, although in some instances the request for an appraisal may be transmitted from the bundling company or through some third party.
The appraiser 116 collects information on the remaining value of products and/or services, including a products/services financing program supported by a customer depository account associated with the property, as indicated at block 512. This value acts to increase the base value of the property. These products and/or services are termed "seller products/services"
because they represent a prepaid asset of the seller's property and are distinct from the "buyer products/services" that the buyer wishes to bundle. In embodiments where the seller has no customer depository account to draw on, such as where the seller is a builder or where the seller arranged a loan without such a structure, the base value is equal to the value only of the real property. At block 512, the appraiser compares the fair market value of the property with the buyer products/services included with its value without the buyer products/services but including the seller products/services, if any. The difference between the two is assigned as a valuation difference to the property. In most instances, it is expected that the valuation difference will be a valuation increase, such as when there are no seller products/services or when the value of the seller's customer depository account has been depleted through prior payments. The property is accordingly appraised to include the value of the buyer products/services at block 516 and the appraisal is transmitted to the lender or borrower at block 520.

[0073] Because of the nature of the classification of funds held within the customer depository account as a prepaid asset of the property, that value is subject to foreclosure in the event of a default on the loan provided by the bundling lender. The authority for the bundling lender to foreclose against the funds held within the customer depository account may be provided with a document showing the classification of the funds as a prepaid asset.
Fig. 6 provides a flow diagram illustrating the effect of foreclosure according to an embodiment of the invention. At block 604, the bundling lender 112 forecloses on the real property itself in a conventional manner. In addition, as indicated at block 608, the bundling lender 112 may receive information setting forth the remaining value in the customer depository account 114, thereby enabling the bundling lender 112 to request delivery of and receive the balance of the account at block 612. In some embodiments, the bundling lender 112 may alternatively provide instructions for the fiinds in the customer depository account to be assigned to a new designated real property or to a new buyer of the current designated property or to a supplier.

[0074] An illustration of how fiinds in the customer depository account 114 may be accessed for purchases is provided with the flow diagram of Fig. 7. Briefly, the funds are accessed by presentation of the debit instrument at the point-of-sale, with information from the debit instrument being used to identify the customer depository account 114 and initiate a transfer of funds from that account to an account controlled by the selling merchant.

[0075] Thus, at block 704, a buyer who possesses a debit instrument that identifies a customer depository account 114 visits a merchant and selects items for purchase. When the buyer is ready to complete the purchase, he presents his debit instrument at block 708. The debit instrument may conveniently comprise a magnetic-stripe card or smart card in some embodiments. A point-of-sale device at the merchant extracts information from the debit instrument, such as by reading the magnetic stripe of a magnetic-stripe card or by reading a chip embedded in a smart card. This information may identify the buyer and the customer depository account 114 and is combined with other transaction information specifying a price of the purchase and forwarded to the debit processor 118 at block 712.

[0076] The information received by the debit processor 118 may be used to ensure compliance with terms of the applicable program at block 716. For example, the buyer identification included as part of the transaction information may be used to identify whether there are restrictions on what type of items may be purchased and where it may be purchased according to the program. If the transaction is not in compliance, a return code may be returned to the merchant to refuse the transaction at block 724.

[0077] An additional aspect of determining compliance at block 716 may involve identifying a portion of the transaction as eligible for application to the customer depository account 114, such as when the buyer selects some items that are within the scope of the program and other items that are not. The items within the scope of the program may be segregated, and the cost for that portion of the transaction determined, from information that identifies the products individually. For instance, if the products are identified with bar codes that are scanned by the point-of-sale device, the individual products may be identified using the Universal Product Code ("UPC") system, the European Article Number ("EAN") system, the Global Trade Item Number ("GTIN") system, the Serialized Shipping Container Code ("SSCC") system, the Global Location Number ("GLN") system, the Global Returnable Asset Identifier ("GRAI") system, the Global Individual Asset Identifier ("GIAI") system, and the Global Service Relation Number ("GSRN") system, among others. Many of these systems are currently administered by the Uniform Code Council, Inc. ("UCC") and EAN
International. While the emphasis of the these organizations is currently on bar-code technologies, including Reduced Space Symbology ("RSS") and Composite Symbology ("CS"), they acknowledge that the systems may alternatively be implemented using other technologies, such as with radio-frequency tags. Embodiments of the invention are not restricted to any particular classification technology and are intended to encompass all such classification systenls.

[0078] Also, the ability of the debit processor 120 to analyze the transaction information further permits the use of other types of debit instruments, including even biometrics that identify the buyer. For example, instead of presenting a magnetic-stripe card or smart card as a debit instrument, in some embodiments the buyer may allow his fingerprint, iris, or retina to be scanned, or to have his hand or facial geometry analyzed.
This information is then bundled with the transaction information and analyzed by the debit processor 120 to identify the individual from stored biometric records and thereby determine any restrictions that apply to the corresponding program and identify the customer depository account 114.

[0079) Once full or partial compliance with the program has been verified, the debit processor 120 may query the customer depository account 114 to confirm that sufficient funds remain in the account to pay for the items. If not, the debit processor 120 returns a denial code at block 724 so that the merchant may refuse the transaction. If there are sufficient funds, the debit processor 120 initiates a transfer at block 728 of the funds to be used in paying for the selected items from the customer depository account 114 to an account controlled by the merchant. An approval code is retu.rned to the point-of-sale device at block 732 to confirm that the transfer has been executed and that the merchant should proceed with the sale of the items to the buyer. In cases where the transaction involves the purchase both of items within the scope of the program and outside the scope of the program, the approval code may be accompanied with a specification of the amount that was transferred between accounts so that the transaction amount due for the items outside the scope of the agreement may be reduced at block 736 by the ainount approved for payment of items within the scope of the program. The buyer presents additional payment for the items outside the scope of the program at block 740, thereby completing the transaction. The additional payment may take the fonn of any payment accepted by the merchant, such as cash, a check, a credit card, a debit card to a different account, and the like.

[0080] In many embodiments, the methods described in connection with Figs. 2-may be coordinated by computational devices that provide connectivity as shown with the schematic drawing of Fig. 1. A typical structure for such computational devices is shown in Fig. 8, which broadly illustrates how individual system elements may be iinplemented in a separated or more integrated manner. The computational system 800 is shown comprised of hardware elements that are electrically coupled via bus 826, including a host processor 802, an input device 804, an output device 806, a storage device 808, a conlputer-readable storage media reader 810a, a communications system 814, a processing acceleration unit 816 such as a DSP or special-purpose processor, and a memory 818. The computer-readable storage media reader 810a is further connected to a computer-readable storage medium 810b, the combination comprehensively representing remote, local, fixed, and/or removable storage devices plus storage media for temporarily and/or more permanently containing computer-readable information. The communications system 814 may comprise a wired, wireless, modem, and/or other type of interfacing connection and permits data to be exchanged with the other computational devices such as illustrated by the schematic arrangement of Fig. 1 to implement embodiments as described.

[0081] The computational device 800 also comprises software elements, shown as being currently located within working memory 820, including an operating system 824 and other code 822, such as a program designed to implement methods of the invention. It will be apparent to those skilled in the art that substantial variations may be made in accordance with specific requirements. For example, customized hardware might also be used and/or particular elements might be implemented in hardware, software (including portable software, such as applets), or both. Further, connection to other computing devices such as network input/output devices may be employed.

2. Healthcare [0082] To illustrate instances where the bundled products/services include healthcare products/services, Fig. 9A. This diagram is divided into several major categorizations of the types of services that may be bundled with a loan according to embodiments of the invention, but these categorizations are not intended to be exclusive and there are other categorizations that will be evident to those of skill in the art upon reading this disclosure. Block 950 identifies options that the borrower may have to select services of medical professionals, such as general medical practitioners, medical specialists, and the like. At block 952, the borrower is provided with costs for care by such medical professionals, enabling the borrower to select those medical-care services that are desired. The cost of the selected medical-care services is calculated for a specified usage term, such as for a term of five years, at block 956.

[0083] A similar procedure is used for the selection of medical-insurance providers at block 960, which may include specialized insurance for specialized procedures, such as vision insurance, dental insurance, and the like. The borrower is provided with costs for medical insurance, perhaps for a number of different providers, at block 962.
The borrower selects the desired medical insurance at block 964, permitting the cost of the selected medical insurance to be calculate for a specified usage term, such as for a term of five years, at block 966.

[0084] The selection of services for extended care and services from other healthcare providers occurs generally at block 970. Extend-care services may include nursing-home services, long-term-care assistance services, hospice services, and the like.
The scope of other healthcare providers is intended to be broad, including such diverse services as laboratory services, midwife services, x-ray services, MRI services, CAT-scan services, mammography services, and the like. At block 972, the borrower is provided with costs for such extended care and other healthcare provider services, permitting the borrower to make a selection of such services at block 974. The cost of the selected options is calculated for a specified term of usage at block 976.

[0085] Block 980 indicates the selection of pharmacy and prescription services, which includes providing the borrower with costs for prescription and nonprescription medication coverage at block 982. After the borrow selects the prescription and nonprescription medication coverage that is desired, the cost of the selections is calculated for a specified usage term. The various costs of the selections made by the borrower in each of blocks 950, 960, 970, and 980 are totaled in order to update the loan cost at block 914 of Fig.
9A.

[0086] Embodiments of the invention also provide a facility that is connected with a public network to coordinate matching healthcare providers to purchasers of healthcare services. The public network may conveniently comprise the Internet. The facility is configured to provide an interface with the purchasers so that they may enter information that is then used to identify potential healthcare providers based on known information about the healthcare providers. Examples of the type of information that may be used in performing a match includes medical specialty, location, costs, insurance acceptance, and the like. In addition, the facility simplifies initial transmission of information to the healthcare providers.

[0087] A structure that may be used to effect communications among the different parties involved is illustrated in Fig. 9B. A relationship is ultimately desired between the purchaser 905 and with one or more healthcare providers. The purchaser 905 interacts with the system through a purchaser computer 908, which may be owned by the purchaser 905 or may be another computer used by the purchaser 905 such as at a library, at work, etc. The healthcare providers similarly interact with the system through provider computers 912 and if an actuary is involved with the process, the actuary interacts with the system through an actuary computer 916. Each of these computers 908, 912, and 916 is interconnected througll a public network 920 such as the Internet. Advantageously, the public network 920 may be equipped to accommodate secure transmissions using suitable encryption protocols to protect the information transmitted among the parties in implementing methods of the invention.

[0088] The public network 920 is also interfaced with a coordination system 924 that has programming instructions to coordinate initiating the desired relationship. The coordination system 924 has access to storage devices where information used in implementing embodiments of the invention is stored. For example, a provider database 928 may house provider tables 940 that specify criteria under which the provider will be suitable for providing healthcare services. Such information might include types of medical specialties that may be accommodated, minimal service-fee structures, and the like.
Similarly, a purchaser database 932 may house purchaser tables that specify criteria under which a relationship will be acceptable to the purchaser 905, with the information in the tables being drawn from received application information. For instance, such tables might include a specification of needed medical specialties, acceptable geographical locations, acceptable service-fee structures, sex of the healthcare practitioner, and the like.
Identification of matches is broadly performed by identifying consistencies between the two sets of tables 940 and 944, with the results being stored in a results database 936. The coordination system 924 may advantageously be operated by a bundling company 102 within a structure like that shown schematically in Fig. 1.

[0089] Fig. 10 provides a flow diagram that summarizes the types of steps that may be taken in performing validation checks on received information. Such validation checks may sometimes be limited to checking the format of information, but may alternatively include more active checks to ensure some level of correctness of the information. For example, the format of a social security number provided by the applicant may be checked at block 1004. At one level, such a check might ensure only that the number has nine digits. At a more thorough level, the format might be checked by ensuring that the number provided has a value that is consistent with structural requirements for the number.
Similarly, an address might be verified at block 1008 by ensuring that it includes a street address, a city, and state, and a ZIP code. Alternatively, a deeper check might be performed to ensure that the identification of each of these elements is consistent with each other by verifying the presence of the identified city within the identified state and verifying that the identified address is within the identified ZIP code. At block 1012, telephone and/or fax numbers may be checked by ensuring that they provide an area code and a seven-digit number, or checked more thoroughly by verifying with a directory that there is a correspondence between the address checked at block 1008 and the number. Similar types of checks may be performed of email addresses block 1016. In addition, insurance information for insurance that may be used in supporting healthcare services may be validated at block 1020; such validation may sometimes including transmitting a validation request over the public network to the insurance provider, a feature that may be used in embodiments where relationships have been established with insurance providers to permit such information exchange.

[0090] A flow diagram is provided in Fig. 11 to illustrate steps that may be taken in obtaining an actuarial score. The actuary computer 916 is contacted at block 1104 over the public network and provided with healthcare-purchaser information at block 1108. This information is extracted from information received from the purchaser and permits demographic identifications to be made. For instance, this information may include the age of the purchaser, the sex of the purchaser, behavior characteristics of the purchaser, health characteristics of the purchaser, and the like. This information may then be used by the actuary computer 916 to determine a score that characterizes health risks of the purchaser in a simple quantitative way. This actuarial score is received at block 1112 and may be applied at block 1116 in matching the applicant to potential healthcare providers.

[0091] Figs. 12 and 13 illustrate how information may be filtered in performing a match and in transferring relevant information to identified healthcare providers. Briefly, the coordination system 924 runs a software filter that matches data in the purchaser tables 924 as extracted from the completed application with preset criteria established by the healthcare providers aiid stored in the provider tables 940. The correlation between different criteria 1204 established by the providers and between the data extracted 1208 from the application may permit a match with a plurality of different healthcare providers 1212, as illustrated schematically in Fig. 12.

[0092] The flow diagram of Fig. 13 shows one way in which the structure shown in Fig. 12 may be used to filter the results. At block 1304, the system begins by considering an initial healthcare provider, say provider 1 shown at block 1212-1 of Fig. 12.
The preset criteria for this provider are read at block 1308 and checked at block 1312 to see whether they match the data statements 1208 extracted from the application information. If there is a match, application information is transmitted to that healthcare provider at block 1316 and a record is kept that a match was found. Transmission of application information to the healthcare provider permits the healthcare provider to participate in bids for the purchaser's business. The application information generally includes sufficient information to allow the healthcare provider to evaluate the likely costs and risks associated with the desired healthcare service and to generate parameters defining its bid. For instance, the application information might include a specification by the healthcare purchaser of a maximum monthly amount that can be afforded towards the services, sometimes including amounts made available through the customer depository account 926 associated with the purchaser's loan.
The application information may also be used to define a categorization of the healthcare purchase, according to such relevant criteria as whether the healthcare services will be for a newly married person, for a person with one child, for a self-employed person, for a new homeowner, for an individual with no major medical problems, and the like. The parameters that define the provider's bid may include certain restrictions, such as limitations on treatment options, limitations on drug types, and the like, in order to comply with the application criteria.

[0093] This process is repeated for all potential providers by making a check at block 1324 whether there are additional providers to be considered. If so, the system advances to the next healthcare provider at block 1320 and repeats the process.

[0094] This is done until there are no other providers to be considered, the system having identified all providers who have criteria consistent with information provided by the applicant and having transmitted application information to those providers.
At block 1328, the matched providers are accordingly identified to the healthcare purchaser 905 to perniit the purchaser to make a selection. This may advantageously be accomplished through operation of the coordination system 924 by the bundling company 954 to provide a convenient comparison interface. As indicated at block 1332, such an interface could include a software-generated table of the various bids with a tabular summary of prices, benefits, restrictions, and other program features to permit the healthcare purchaser to evaluate the offerings. In some instances, the coordination system 924 may also apply selection criteria to identify a "Top 5" or "Top 3" offerings to simplify the display. Such arrangements conveniently permit the healthcare purchaser to quickly analyze the proposed offerings in an unbiased environment to select the desired provider.

[0095] . In some embodiments, a mechanism may also be provided for "rebids,"
as indicated at block 1336. Such rebids permit modifications of original proposed offerings by the healthcare providers based on additional information. This additional information may be provided by the healthcare purchaser in response to specific queries generated by the healthcare provider, may be volunteered by the healthcare purchaser after reviewing the original bids, or may be provided by the healthcare provider in different instances. Such a rebidding procedure may be iterative to progressively narrow the purchaser's search and may conveniently be performed in a real-time interactive fashion.

3. Food [0096] Different food-financing programs may include such features as permitting or excluding purchases of food to be consumed away from home such as at restaurants, imposing restrictions on which merchants may be used to purchase the food or offering unrestricted purchases, defining different time periods such as one year, two years, five years, and the like over which food may be purchased, etc. For instance, one program might provide two years of food purchases to be made only at grocery stores. Another program might provide five years of food purchases at any food merchant, including grocery stores and restaurants. Still another program might provide five years of food purchases at any restaurant, but with all grocery purchases to be made at a Safeway store.
Still other variations are possible and other factors may be included in defining different food-financing programs.
Different fees may be imposed for different programs in accordance with the level of flexibility and time commitment the buyer wishes.

4. Fiber-Network Securitization [0097] Embodiments of the invention also provide for the securitization of fiber-optic and high-speed wireless networks. Access to the fiber and the high-speed wireless networks by a homeowner may be included as part of the products and/or services that are bundled with a loan secured by real property, such as a mortgage or home equity line of credit. A
general overview of a structure that may be used in providing services over such fiber-optic and high-speed wireless networks is illustrated schematically in Fig. 14.
Access to the various networks, which are shown in the drawing as a voice network 1420, a video network 1424, and a data network 1428, is made over fiber-optic and wireless communication lines, which are shown in the drawing as solid lines. Merely by way of example, the voice network 1420 may provide high-speed telephone communications service, the video network 1424 may provide television content, and the data network 1428 may provide Internet service. The illustration of three networks is not intended to be limiting and other networks may be provided in different embodiments, providing combinations or portions of the illustrative services or perhaps providing additional services.

[0098] Access to the networks' 1420, 1424, and 1428 is made possible through fiber-optic cable and high-speed wireless equipment that is deployed throughout a geographical region. For example, in the United States, major fiber-optic backbone structures connect the vast majority of U.S. cities to such networks. These fiber distributions include point-of-presence nodes 1412, which are junction locations that permit connections to be made to allow smaller towns and subdivisions access to the networks 1420, 1424, and 1428. Within such towns and at entrances to such subdivisions, the fiber lines are split into smaller bundles, perhaps with divisions being performed at multiple nodes, with individual fiber lines eventually being provided to endpoint locations 1416. The endpoint locations may comprise individual houses, apartments, businesses, or other locations. In addition, a wireless network can overlay the coinmunity like a "cloud" affording the citizens connectivity to the fiber-optic backbone.

[0099] Traffic over the fiber-optic lines and the high-speed wireless network from the various networks 1420, 1424, and 1428 is directed by a network operations center 1404, which may be a manned location that houses equipment used in delivering voice, video, data, home security, and perhaps other services from the networks. For example, the network operations center 1404 may receive television content from one or more wholesale providers of such content from over fiber lines or alternatively from satellite transmissions. In one embodiment, the television signal is distributed to customers over the fiber lines using internet protocol television ("IPTV"), a recently developed protocol that enables such transmissions. Dial-tone telephone functionality may also be transmitted over the fiber lines from the network operations center 1404 to the endpoint locations 1416 in one embodiment using a "soft switch," which connects Voice over Internet Protocol ("VoIP") to the public telephone system. Personnel located at the network operations center 1404 may monitor the integrity of the fiber distribution and the quality of service being delivered to the customers.

[0100] The network operations center 1404 may also monitor and control a plurality of local distribution centers 1408. It is generally anticipated that each of the local distribution centers 1408 will be unmanned, but this is not a requirement and in some instances one or more of the local distribution centers 1408 may have some personnel. The local distribution centers 1408 act to extend the effective coverage of the network operations center 1404. The range of the network operations center 1404 to deliver the network services is generally a fun.ction of the cost of transporting the content provided by those networks 1420, 1424, and 1428 over the fiber and wireless structure. The costs associated with laying the fiber may vary according to a number of factors, including the capacity of the individual fiber lines, the soil conditions for trenching, and the like. In providing an illustration below, the costs for providing fiber may be considered in three categories. First is the cost of providing a fiber and high-speed wireless connection from the fiber backbone to the network operations center 1404; this cost may vary depending on the cost charged by the owner of the fiber line.
Second is the cost of distributing the fiber from the network operations center 104 and/or the local distribution center 1408 to the subdivision; this is referred to in the art as the fiber's "common area." Third is the cost of bringing the fiber line from the street to the house; this is referred to in the art as the fiber "drop."

[0101] The securitization of the fiber network may be implemented as illustrated with the flow diagram of Fig. 15. At block 1504, an investor purchases a fiber investment coupon that is tied to the price of the fiber unit cost, usually from the bundling company 102. In some instances, the coupon may be sold by a stock broker, financial advisor, or other entity in the business of selling investment and security instruments to accredited and non-accredited investors, with "accredited investors" referring herein to investors as defined in Rule 501(a) of Regulation D of the Securities and Exchange Commission, the entire disclosure of which is incorporated herein by reference for all purposes. The coupon has a face value that is greater than the cost of the coupon, being, for example, twice the cost of the coupon, three times the cost of the coupon, or five times the cost of the coupon in different embodiments.
The coupon also has a maturity date that is related to the ratio of its face value to purchase cost. For example. Each coupon has an undivided interest in the fiber and high-speed wireless network connection to each lot or home in a selected subdivision. In some embodiments, the redemption of the coupon, i.e. payment of the face value plus interested earned to the investor by the bundling company 102, is based on a first-in-first-out formula.
Thus, as indicated at block 1508, coupons may be recorded as they are sold according to the date or purchase.

(0102] A check is made at block 1512 whether a lot or home in the subdivision has been sold. If so, proceeds from the loan closing, particularly the payment of the network access charge, are used at block 1516 to redeem the earliest-dated coupon(s).
Each lot or home would thus have attached to it the network access charge and a fixed period of telecommunications charges. If not lots or homes are sold and a particular coupon has not been redeemed by the bundling company 102, the coupon begins to earn interest at block 1524 until it is redeemed at block 1520. Anytime after the maturity date, the bundling company 102 may redeem the coupon, with the coupon holder being paid the face value of the coupon plus any earned interest. In such embodiments, the investor has no demand or "put" rights for redemption of the coupon, which is limited to occurring as a result of a lot or home closing containing the network access charge, subject to the first-in-first-out formula, or by active redemption by the bundling company 102. Each coupon is secured by an undivided interest in the fiber cable and wireless network deployment in the subdivision and the revenue received by the bundling company 102 from the services delivered over the fiber and high-speed wireless connections to the homes in the subdivision. In embodiments where payment of the network access charge is not used by the bundling company 102 to redeem a coupon, other funding sources may be used, one example being USDA funding. In such an embodiment, the loan may be paid off using proceeds from homeowner loans when a homeowner finances his telecommunications services and the network access cost.

[0103] With such an arrangement, the bundling company 102 receives payment from the initial homeowner to cover the cost of: (1) the proportionate cost of the network operations center 1404 and/or local distribution center(s) 108; (2) the proportionate cost of the common-area fiber and high-speed wireless deployment; and (3) the cost of the fiber drop to the home and the wireless equipment necessary to effect wireless connectivity to the fiber network. The arrangement advantageously mitigates the cost associated with laying optical-fiber lines and high-speed wireless equipment in and to a subdivision and the costs associated with building and equipping the network operations center 1404 and/or local distribution center(s) 1408. In addition, the bundling company advantageously acquires ownership to the fiber lines in a subdivision and increases balance-sheet assets. Advantages also inure to the homeowners by realizing an increase in property values. These various advantages may be understood by considering the following example, which is provided merely for purposes of illustration and is not intended to be limiting.

Examples [0104] Certain benefits and advantages of embodiments of the invention are evident from the following description of specific examples.

[0105] Example No. 1: In a first example, a consumer wishes to increase monthly cashflow by lowering monthly cash expenses. As part of a refinancing of the consumer's home mortgage to reduce the payment by taking advantage of a reduction in interest rates, the -- - - t customer bundles an Internet service having a retail monthly price of $50.00.
By using a mortgage loan amortized over 30 years, the monthly cash expense for the Internet service is reduced to about $14.00.

[0106] Example No. 2: In a second example, a prospective homeowner anticipates paying an average of about $100 per month for video/television, telephone/long distance, Iiiternet access, and home-security monitoring, in addition to about $150 in utilities, for total monthly expenses of $250. Over five years, the prospective homeowner thus expects to pay about $15,000 for these surfaces. The prospective homeowner decides to purchase a home having a base appraised value of $200,000 and to bundle these costs with the mortgage. The total appraised value is the sum of the base appraised value of the home and the five years of services for a total of $215,000. The homeowner closes by making a 20%
downpayment on a 6%-interest loan, providing a mortgage amount of $172,000. The borrower's mortgage payment is thus $1031/month. If the borrower had taken a loan only on the real property for 80% of the $200,000, his mortgage payment would have been $959/month. While the increase in the loan payment is $72/month, the monthly expenses of $250 have been eliminated since they are paid from an associated customer depository account, providing the homeowner with a monthly cashflow increase of $178.

[0107] This advantage may be exploited further by noting that the mortgage interest is tax deductible in the United States. Using a 30% combined state and federal tax rate, the "after tax" value of the $72/month difference in payments is effectively $50, providing the homeowner with $200/month in increased average cashflow.

[0108] Example No. 3: In a third example, the same scenario as presented in Example No. 2 is repeated, with the homeowner this time investing the additional cashflow in an interest-bearing account at a 5%/year interest rate. At the end of the 60 months of paid services, the savings accumulation would by $15,298. This corresponds to an average monthly increase in cash flow of $255, more than the cost of the services being financed.
While the effective cost of the services averaged over 60 months might be $280/month because of rate increases, the average cost to the homeowner is fixed in accordance with the invention at a negotiated rate of $250. Since the average increase by investing the savings exceeds this fixed cost, the homeowner has effectively received the bundled services for free.

[0109] The homeowner is also insulated from price volatility of the services.
A spike in energy costs will not force the homeowner into a circumstance where he must make a decision of whether to pay the mortgage or make the energy payment one month.
This is beneficial not only to the homeowner, but also to the lender who is insulated from circumstances that not uncommonly result in mortgage defaults.

[0110] Example No. 4: In a fourth example, the same scenario as presented in Example No. 3 is repeated, with the homeowner deciding to pay off the mortgage at the end of the five-year period. The mortgage balance is $160,053, which may be compared with a balance of $148,887 that would have resulted if the borrower had financed only the real property at $200,000. The difference in pay-off amounts is $11,167, which is more than offset by the accumulated savings of $15,298, the homeowner being $4131 ahead of a conventional arrangement.

[0111] Example No. 5: In a fifth example, the same scenario as presented in Example No. 3 is repeated, with the homeowner deciding to renew the arrangement and purchase another five-year term of services. This can be done in at least three different ways: (1) by refinancing the home and including another five-year term of bundled services;
(2) by keeping the first mortgage and obtaining a home-equity line of credit to pay for and bundle the services; or (3) by paying retail for the services. If the homeowner chooses the first option, the accumulated savings at the end of 30 years would by approximately $237,132, with a net savings after paying off the mortgage differential of $118,586. If the homeowner chooses the second option, the overall accumulated savings at the end of 30 years would be approximately $148,250, with a net savings of $52,437. If the homeowner chooses the third option, the overall accumulated savings at the end of 30 years would by $17,409, with a net savings of $17,409.

[0112] Example No. 6: In a sixth example, a bundling lender simultaneously originates a first mortgage loan and a second mortgage loan. The cost of the bundled products and services are included in the second mortgage loan. This permits the buyer of the real property to acquire both it and the bundled products and services for "no money down." For example, the first mortgage may be an 80% loan-to-value loan, leaving 20%
equity available for the second mortgage. For a property having an appraised value of $200,000, including $15,000 of bundled products and services, the 80% loan is for $160,000 and the second mortgage is for $40,000. At the loan closings, the second mortgage loan funds the customer depository account in the amount of $15,000 for satisfying recurring expenses for the products and services. The borrower benefits by not having to use any cash to purchase the property and the bundled products and services, as well as by avoiding the mortgage-insurance requirement attached to loans of 90% loan-to-value or greater. The bundling lender considers the cost of the bundled products and services in qualifying the borrower for two loans, one being a bundled loan, and may order an appraisal and identify the bundled products and services with the property. Once the borrower qualifies for the bundled loan, the bundling lender commits the funds for payment of the recurring products and services and distributes the funds in accordance with a predetermined agreement.

[0113] Example No. 7: In a seventh example, a homeowner decides to sell his present home with a balance remaining in the customer depository account. The homeowner transfers the funds remaining in the customer depository account to the new purchaser of the existing property.

[0114] Exam~ple No. 8: In an eighth example, a homeowner decides to sell his present home with a balance remaining in the customer depository account. The homeowner transfers the funds remaining in the customer depository account to the new, second property.

[0115] Example No. 9: In a ninth example, a real-property owner has bundled products and services totally $70,000 with a loan secured by the real property. The bundling company and bundling lender have a contractual arrangement requiring the bundling company to pay a guarantee amount from the customer depository account in the event the owner defaults on loan payments. The owner defaults in the first year after acquiring the loan. The bundling company therefore pays the bundling lender $70,000.

[0116] Example No. 10: In a tenth example, the same scenario is presented as described for Example No. 9, except that the owner defaults in the third year after acquiring the loan. The bundling company therefore pays the bundling lender $45,000.

[0117] Exaanble No. 11: In an eleventh example, the same scenario is presented as described for Example No. 9, except that the contractual arrangement specifies that the bundling company will assume ownership of the real property and assume responsibility for making loan payments in the event of a default. When the owner defaults, the bundling company thus assumes such ownership and responsibility.

[0118] Example No. 12: In a twelfth example, a consumer wishes to increase monthly cashflow by lowering monthly cash expenses. As part of a refinancing of the consumer's home mortgage to reduce the payment by taking advantage of a reduction in interest rates, the customer bundles health insurance for a family having a retail monthly price of $500.00. By using a mortgage loan amortized over 30 years, the monthly cash expense for the health insurance is reduced to about $145.00.

[0119] ExMle No. 13: In a thirteenth example, a prospective homeowner anticipates paying an average of about $222 per month for medical and healthcare premiums, in addition to about $192 in monthly costs for prescription drugs, for total monthly expenses of $414. Over five years, the prospective homeowner thus expects to pay about $24,840 for these medical and healthcare services. The prospective homeowner decides to purchase a home having a base appraised value of $200,000 and to bundle these costs with the mortgage.
The total appraised value is the sum of the base appraised value of the home and the five years of inedical/healthcare services for a total of $224,840. The homeowner closes by making a 20% downpayment on a 6%-interest loan, providing a mortgage amount of $179,872. The borrower's mortgage payment is thus $1078/month. If the borrower had taken a loan only on the real property for 80% of the $200,000, his mortgage payment would have been $959/month. While the increase in the loan payment is $119/month, the monthly expenses of $414 have been eliminated since they are paid from an associated customer depository account, providing the homeowner with a monthly cashflow increase of $295.

[0120] This advantage may be exploited further by noting that the mortgage interest is tax deductible in the United States. Using a 30% combined state and federal tax rate, the "after tax" value of the $119/month difference in payments is effectively $83, providing the homeowner with $331/month in increased average cashflow.

[0121] Example No. 14: In a fourteenth example, the same scenario as presented in Example No. 13 is repeated, with the homeowner this time investing the additional cashflow in an interest-bearing account at a 5%/year interest rate. At the end of the 60 months of paid services, the savings accumulation would by $25,124. This corresponds to an average monthly increase in cash flow of $419, more than the cost of the services being financed.
While the effective cost of the services averaged over 60 months might be $500/month because of rate increases, the average cost to the homeowner is fixed in accordance with the invention at a negotiated rate of $414. Since the average increase by investing the savings exceeds this fixed cost, the homeowner has effectively received the bundled services for free.

[0122] The homeowner is also insulated from price volatility of the services.
A spike in medical or healthcare costs as a result of illness or accident will not force the homeowner into a circumstance where he must make a decision of whether to pay the mortgage or make the healthcare payment. This is beneficial not only to the homeowner, but also to the lender who is insulated from circumstances that not uncommonly result in mortgage defaults.

[0123] Example No. 15: In a fifteenth example, the same scenario as presented in Example No. 14 is repeated, with the homeowner deciding to pay off the mortgage at the end of the five-year period. The mortgage balance is $167,379, which may be compared with a balance of $148,887 that would have resulted if the borrower had financed only the real property at $200,000. The difference in pay-off amounts is $18,492, which is more than offset by the accumulated savings of $25,124, the homeowner being $6632 ahead of a conventional arrangement.

[0124] Example No. 16: In a sixteenth example, the same scenario as presented in Example No. 14 is repeated, with the homeowner deciding to renew the arrangement and purchase another five-year term of services. This can be done in at least three different ways:
(1) by refinancing the home and including another five-year term of bundled services; (2) by keeping the first mortgage and obtaining a home-equity line of credit to pay for and bundle the services; or (3) by paying retail for the medical and healthcare services.
If the homeowner chooses the first option, the accumulated savings at the end of 30 years would by approximately $312,630, with a net savings after paying off the mortgage differential of $153,274. If the homeowner chooses the second option, the overall accumulated savings at the end of 30 years would be approximately $238,478, with a net savings of $84,105. If the homeowner chooses the third option, the overall accumulated savings at the end of 30 years would by $28,102, with a net savings of $28,102.

[0125] Example No. 17: In a seventeenth example, a prospective homeowner anticipates paying an average of about $500 per month for groceries, in addition to about $200 per month for restaurants, for total monthly food expenses of $700. Over five years, the prospective homeowner thus expects to pay about $42,000 for these food expenses. The prospective homeowner decides to purchase a home having a base appraised value of $300,000 and to bundle these costs with the mortgage. The total appraised value is the sum of the base appraised value of the home and the five years of food expenses for a total of $342,000. The homeowner closes by making a 20% down payment on a 6%-interest loan, providing a mortgage amount of $273,600. The borrower's mortgage payment is thus $1640/month. If the borrower had taken a loan only on the real property for 80% of the $300,000, his mortgage payment would have been $1439/month. While the increase in the loan payment is $201/month, the monthly expenses of $700 have been eliminated since they are paid from an associated customer depository account, providing the homeowner witll an increased monthly cashflow increase of about $500.

[0126] This advantage may be exploited further by noting that the mortgage interest is tax deductible in the United States. Using a 30% combined state and federal tax rate, the "after tax" value of the $201/month difference in payments is effectively $141, providing the homeowner with $559/month in increased average cashflow.

[0127] Example No. 18: In an eighteenth example, the same scenario as presented in Example No. 17 is repeated, with the homeowner this time investing the additional cashflow in an interest-bearing account at a 5%/year interest rate. At the end of the 60 months of paid services, the savings accumulation would be $42,484. This corresponds to an average monthly increase in cash flow of $708, more than the cost of the food being financed. While the effective cost of the services averaged over 60 months might be $800/month because of increases in food costs, the average cost to the homeowner is fixed in accordance with the invention at a negotiated rate of $700. Since the average increase by investing the savings exceeds this fixed cost, the homeowner has effectively received the food for free.

[0128] The homeowner is also insulated from price volatility of food costs.
This is beneficial not only to the homeowiier, but also to the lender who is insulated from circumstances that not uncommonly result in mortgage defaults.

[0129] Example No. 19: In a nineteenth example, the same scenario as presented in Example No. 18 is repeated, with the homeowner deciding to pay off the mortgage at the end of the five-year period. The mortgage balance is $254,597, which may be compared with a balance of $223,330 that would have resulted if the borrower had financed only the real property at $300,000. The difference in pay-off amounts is $31,267, which is more than offset by the accumulated savings of $42,484, the homeowner being $11,217 ahead of a conventional arrangement.

[0130] Example No. 20: In a twentieth example, the same scenario as presented in Example No. 18 is repeated, with the homeowner deciding to renew the arrangement and purchase another five-year term of food expenses. This can be done in at least three different ways: (1) by refinancing the home and including another five-year term of bundled food expenses; (2) by keeping the first mortgage and obtaining a home-equity line of credit to pay for and bundle the food expenses; or (3) by paying retail for the food expenses. If the homeowner chooses the first option, the accumulated savings at the end of 30 years would be approximately $527,976, with a net savings after paying off the mortgage differential of $307,397. If the homeowner chooses the second option, the overall accumulated savings at the end of 30 years would be approximately $402,746, with a net savings of $163,1735. If the homeowner chooses the third option, the overall accumulated savings at the end of 30 years would by $47,307, with a net savings of $47,307.

[0131] Example No. 21: In a twenty-first example, a bundling lender simultaneously originates a first mortgage loan and a second mortgage loan. The cost of the bundled food expenses are included in the second mortgage loan. This permits the buyer of the real property to acquire both it and the bundled food expenses for "no money down."
For example, the first mortgage may be an 80% loan-to-value loan, leaving 20%
equity available for the second mortgage. For a property having an appraised value of $300,000, including $50,000 of bundled food expenses, the 80% loan is for $280,000 and the second mortgage is for $70,000. At the loan closings, the second mortgage loan funds the customer depository account in the amount of $50,000 for satisfying the food expenses. The borrower benefits by not having to use any cash to purchase the property and the bundled food expenses, as well as by avoiding the mortgage-insurance requirement attached to loans of 90% loan-to-value or greater. The bundling lender considers the cost of the bundled food expenses in qualifying the borrower for two loans, one being a bundled loan, and may order an appraisal and identify the bundled food expenses with the property. Once the borrower qualifies for the bundled loan, the bundling lender commits the funds for payment of the food expenses and distributes the funds in accordance with a predetermined agreement as described above.

[0132] Example No. 22: In a twenty-second example, fiber-network securitization is illustrated. Merely by way of illustration, it is estimated that currently the average cost to equip a network operations center 1404 with the technology to deliver voice, video, home security, and network data is about $1.8 million, plus staffing costs. The cost of an unmanned local distribution center is estimated to be about $1,200,000 with no staffing costs.
Laying 24-strand fiber to and throughout a subdivision, the common area, currently costs about $2 per running foot when the utility trench (for connecting sewer, water, and electrical in-ground service) is open. A typical subdivision may have an aggregated average of about 375 running feet per house, resulting in a common-area cost per house of about $750. The drop might average about 150 feet of fiber per house, resulting in a drop cost of about $300.

[0133] In addition to these costs, are costs of the network operations center 1404 and the local distribution center(s) 1408 amortized over the number of homes in the subdivision.
For 2500 homes serviced by the network operations center 1404 and the local distribution ceiiter(s) 108, this charge is about $720 per house. The total "fiber unit cost" per house in this example is thus about $1770. To make the fiber connection to each house operational, certain electronic equipment is additionally connected to the fiber line, with the approximate cost per house being $1150, including installation fees. The total cost to activate the networlc for each house is thus about $2920, determined by conibining these electronics' costs with the fiber unit cost.

[0134] In this example, the fiber investment coupons are sold for $1770, an amount equal to the fiber unit cost, with each fiber investment coupon having a face value of $3540, i.e. twice its cost, and a maturity date twenty-four months from its date of issuance. The cost to finance the fiber network is thus $1770 using this program, resulting in a network access charge per home of $4690, computed as the sum of the fiber unit cost, the electronic equipment and installation cost, and securitization financing cost.

[0135] When a homeowner purchases bundled telecommunications services, the $4690 network access charge is included and results in a monthly cost of about $20 after accounting for its tax deductibility. Over five years, the homeowner's cost for the network access charge is thus about $1200. But the fiber connectivity has increased the value of the home. There are at least two methods by which this appreciation may be valued.
First, the value of the fiber connection to the home may be considered to appreciate at the rate of the home's appreciation. For instance, if the home appreciated 11 %lyear, at the end of five years the network access charge valuation may rise from $4690 to $5485.
Alternatively, the valuation may be made by determining the cost of providing the fiber connection. While the initial cost of the network access charge was based on the deployment of the fiber when the utility trench is open, once the trench is closed and improvements have been made by completing streets and curbing, the cost for laying the fiber is between about $10/foot and $20/foot depending on soil conditions. In the example where a house has a total of 375 running feet of common area and 150 feet of drop, for a total of 525 feet, trenching costs at $10/foot result in a fiber deployment value of $5250. Together with the $720 amortized value of the network operations center 1404 and/or local distribution center(s) 1408, the value of the fiber connection is about $5970. While the homeowner paid $1200 over five years for the network access charge, this resulted in an increase in home value between about $5500 and $6000.

[0136] When the homeowner decides to move, he can sell the network access charge to the bundling company 102. For instance, the bundling company may pay an amount for the network access charge equal to 10% of the annual telecommunications revenue for ten years purchased by the new homeowner when the new homeowner contracts for the bundled telecommunications services. If a new homeowner purchases $18,000 of telecommunications services over five years, the annual revenue recognition would be $3600 per year. Tlius, the initial homeowner purchasing the lot or house, who pays $1200 out of pocket for the network access charge, may receive a $5970 increase in property value over five years and $3600 from the bundling company 202 on the purchase of the network access charge for a total of $9570. This represents a net gain of $8370 on the homeowner's $1200 cost.

[0137] The bundling company 102 would carry the value of the fiber on its balance sheet in the following way: (1) $2 cost per running foot when the fiber is initially deployed and the trench is open; (2) an increase in the cost per running foot to $10 -20 after the trench is covered and improvements have been made; and (3) as much as $15,000 per subscriber when the fiber has been activated and the subscriber is receiving telecommunications services, a valuation based on current third-party valuations from the cable and telecommunications industries. The balance sheet for the bundling company 102 for a 2500-home subdivision would thus grow from a value of $4.4 million (2500 homes x $1770) to $8.625 million (2500 homes x $3540) when the trench is covered and improvements have been made to $37.5 million (2500 subscribers x $15,000) when homeowners are using the telecommunications services.

[0138] Relative to cashflow, in this example the bundling company 102 receives $1770 per lot or house for each fiber investment sold, with the land developer, homebuilder, or homeowner paying the bundling company for the network access charge calculated to be $3540. If the payment is made within the twenty-four months preceding the maturity date, the bundling company 102 receives interest on the $3540 to the date the funds are used to redeem the coupon, which may be performed by paying the investor the face value of $3540.

[0139] When a homeowner moves and the bundling company 102 purchases the network access charge, the purchase price would be $3600. Based on an updated valuation of the value of the telecommunications connection; as opposed to its value when it was deployed, the bundling company 102 would resell the network access charge for up to about $5970, representing a gain of about $2370 with the bundling company 102 retaining ownership of the fiber.

[0140] This securitization arrangement thus provides a number of benefits both for the bundling company and for the homeowners purchasing telecommunications services.

[0141] Thus, having described several embodiments, it will be recognized by those of skill in the art that various modifications, alternative constructions, and equivalents may be used without departing from the spirit of the invention. Accordingly, the above description should not be taken as limiting the scope of the invention, which is defined in the following claims.

Claims

1. ~A method for providing a loan to a borrower, the method comprising:
receiving, at a host system, an identification of real property and a specification of a monetary amount to be used for future payment of expenses;
calculating, with the host system, a total loan value for the real property and specified monetary amount;
requesting, with the host system, approval of the loan secured by the real property for the total loan value; and initiating, with the host system, a closing on the loan at which a customer depository account is funded with the specified monetary amount to provide future funds for payment of expenses incurred by the borrower.

2. ~The method recited in claim 1 further comprising:
receiving, with the host system, a set of limitations defining expenses that qualify for payment with funds in the customer depository account; and initiating, with the host system, restrictions on withdrawal of funds from the customer depository account in accordance with the set of limitations.

3. ~The method recited in claim 2 wherein the set of limitations defines one or more specific merchants at which goods or services must be purchased to qualify for payment with funds in the customer depository account.

4. ~The method recited in claim 1 further comprising initiating, with the host system, issuance of a debit instrument to the customer that may be used at a point of sale to debit the customer depository account as part of a debit transaction for payment of the expenses.

5. ~The method recited in claim 4 wherein the debit instrument is selected from the group consisting of a magnetic-stripe card and a smart card.

6. ~The method recited in claim I wherein the loan is also secured by funds in the customer depository account.

7. ~The method recited in claim 1 further comprising:

receiving a specification of products and/or services distinct from the monetary amount to be used for future payment of expenses, wherein:
calculating the total loan value comprises calculating the total loan value for the real property, the specified monetary amount, and the specified products and/or services distinct from the specified monetary amount; and the customer depository account is funded with the specified monetary amount and a supplementary monetary amount for payment of expenses for the specified products and/or services.

8. ~The method recited in claim 7 wherein the customer depository account comprises a plurality of customer depository accounts, each of the plurality of customer depository accounts being identified with a distinct subset of the products and/or services and the monetary amount to be used for future payment of expenses, the method further comprising effecting a transfer of funds among at least some of the plurality of customer depository accounts.

9. ~The method recited in claim 7 wherein the customer depository account is segregated for separate tracking of funds identified with distinct subsets of the products and/or services and the monetary amount to be used for future payment of expenses, the method further comprising changing an identification of the funds among the distinct subsets.

10. ~The method recited in claim 1 wherein the loan is also secured by the specified products and/or services.

11. ~The method recited in claim 1 wherein approval of the loan comprises:
initiating an appraisal of the value of the property with the specified products and/or services; and calculating a back-end ratio that omits consideration of separate payment of the expenses by the borrower.

12. ~The method recited in claim 1 further comprising designating funds in the customer depository account as a prepaid asset linked with the real property, whereby the funds in the consumer deposit account comprise a real-property interest.

13. ~The method recited in claim 1 wherein:
the loan comprises a mortgage; and the borrower is a buyer of the real property.

14. ~The method recited in claim 1 wherein:
the loan comprises a refinance mortgage; and the borrower is an owner of the real property.

15. ~The method recited in claim 1 wherein:
the loan comprises a home-equity loan or a home-equity line of credit; and the borrower is an owner of the real property.

16. ~The method recited in claim 1 wherein at least some of the expenses comprise recurring expenses, the method further comprising initiating payment of the recurring expenses when due.

17. ~The method recited in claim 1 wherein at least some of the expenses comprise periodic expenses, the method further comprising periodically initiating payment of the periodic expenses.

18. ~The method recited in claim 1 further comprising initiating foreclosure against the real property and against the customer depository account in response to a default by the borrower on terms of the loan.

19. ~The method recited in claim 1 further comprising initiating payment of a guarantee amount defined by a remaining value of the products and/or services to a lender of the total loan value in response to a default by the borrower on terms of the loan.

20. ~The method recited in claim 1 further comprising initiating a transfer of ownership of the real property and a transfer of obligations under the loan to a guarantor in response to a default by the borrower on terms of the loan.

21. ~The method recited in claim 1 further comprising initiating a transfer of the customer depository account to a new buyer of the real property.

22. ~The method recited in claim 1 further comprising initiating a transfer of the customer depository account to a new property purchased by a current owner of the real property after a sale of the real property.

23. ~The method recited in claim 1 further comprising increasing a value of the customer depository account by depositing additional funds after closing into the customer depository account, whereby a useable term of the customer depository account for payment of the expenses is extended.

24. ~The method recited in claim 1 further comprising transmitting over a network from the host system a specification of terms for the loan to permit the borrower to select the loan from a plurality of loans with specified terms.

25. ~The method recited in claim 1 wherein the customer depository account comprises a plurality of customer depository accounts, each of the plurality of customer depository accounts being identified with a distinct subset of the specified products and/or services.

26. ~The method recited in claim 25 further comprising effecting a transfer of funds among at least some of the plurality of customer depository accounts.

27. ~The method recited in claim I wherein the customer depository account is segregated for separate tracking of funds identified with distinct subsets of the specified products and/or services.

28. ~The method recited in claim 27 further comprising changing an identification of the funds among the distinct subsets.

29. ~The method recited in claim 1 wherein the specification of products and/or services comprises specification of a term for the products and/or services.

30. ~The method recited in claim 1 wherein the expenses comprise medical and/or healthcare expenses.

31. ~The method recited in claim 1 wherein the expenses comprise food expenses.

32. ~A method for providing a loan to a borrower, the method comprising:
receiving, at a host system, an identification of real property and a specification of products and/or services providing expenses;
calculating, with the host system, a total loan value for the real property and specified products and/or services;
requesting, with the host system, approval of the loan secured by the real property for the total loan value;
initiating, with the host system, a closing on the loan at which a customer depository account is funded to provide future funds for payment of the expenses; and initiating, with the host system, issuance of a debit instrument to the customer that may be used at a point of sale to debit the customer depository account for payment of the expenses.

33 . ~The method recited in claim 32 wherein the loan is also secured by the specified products and/or services.

34.~The method recited in claim 32 further comprising designating funds in the customer depository account as a prepaid asset linked with the real property, whereby the funds in the customer depository account comprise a real-property interest.

35. ~The method recited in claim 32 further comprising initiating foreclosure against the real property and against the customer depository account in response to a default by the borrower on terms of the loan.

36. ~The method recited in claim 32 further comprising initiating payment of a guarantee amount defined by a remaining value of the products and/or services to a lender of the total loan value in response to a default by the borrower on terms of the loan.

37. ~The method recited in claim 32 further comprising initiating a transfer of ownership of the real property and a transfer of obligations under the loan to a guarantor in response to a default by the borrower on terms of the loan.

38. ~The method recited in claim 32 further comprising initiating a transfer of the customer depository account to a new buyer of the real property.

39. ~The method recited in claim 32 further comprising initiating a transfer of the customer depository account to a new property purchased by a current owner of the real property after a sale of the real property.

40. ~The method recited in claim 32 further comprising increasing a value of the customer depository account by depositing additional funds after closing into the customer depository account, whereby a useable term of the customer depository account for payment of the expenses is extended.

41. ~The method recited in claim 32 wherein the customer depository account comprises a plurality of customer depository accounts, each of the plurality of customer depository accounts being identified with a distinct subset of the products and/or services, the method further comprising effecting a transfer of funds among at least some of the plurality of customer depository accounts.

42. ~The method recited in claim 32 wherein the customer depository account is segregated for separate tracking of funds identified with distinct subsets of the products and/or services, the method further comprising changing an identification of the funds among the distinct subsets.

43. ~The method recited in claim 32 wherein the products and/or services comprise medical and/or healthcare services.

44. ~A method for providing a loan to a borrower, the method comprising:
receiving, at a host system, an identification of real property and a specification of medical and/or healthcare services;
calculating, with the host system, a total loan value for the real property and specified medical and/or healthcare services;
requesting, with the host system, approval of the loan secured by the real property for the total loan value;
initiating, with the host system, a closing on the loan at which a customer depository account is funded to provide future funds for payment of expenses for the medical and/or healthcare services; and initiating, with the host system, issuance of a debit instrument to the customer that may be used to debit the customer depository account for payment of the medical and/or healthcare expenses.

45. ~A computer-readable medium having a computer-readable program embodied therein for directing operation of a computer system for a bundling company, the computer system including a communications system, a processor, and a storage device, wherein the computer-readable program includes instructions for operating the computer system to provide a loan to a borrower in accordance with the following:
receiving an identification of real property and a specification of a monetary amount to be used for future payment of expenses;
calculating a total loan value for the real property and specified monetary amount;
requesting approval of the loan secured by the real property for the total loan value; and initiating a closing on the loan at which a customer depository account is funded with the specified monetary amount to provide future funds for payment of expenses incurred by the borrower.

46. ~A computer-readable medium having a computer-readable program embodied therein for directing operation of a computer system for a bundling company, the computer system including a communications system, a processor, and a storage device, wherein the computer-readable program includes instructions for operating the computer system to provide a loan to a borrower in accordance with the following:
receiving an identification of real property and a specification of products and/or services providing expenses;
calculating a total loan value for the real property and specified products and/or services;
requesting approval of the loan secured by the real property for the total loan value;
initiating a closing on the loan at which a customer depository account is funded to provide future funds for payment of the expenses; and initiating issuance of a debit instrument to the customer that may be used at a point of sale to debit the customer depository account for payment of the expenses.

47. A method for coordinating an electronic healthcare application request between a healthcare purchaser and at least one of a plurality of healthcare providers, the method comprising:
receiving selection criteria from the plurality of healthcare providers;
receiving personal information from the healthcare purchaser at a coordination system over a public network;
filtering the personal information to identify the at least one of the plurality of healthcare providers, each of the at least one of the healthcare providers having selection criteria consistent with the personal information; and transmitting the personal information over the public network to a computer system operated for the at least one of the plurality of healthcare providers.

48. The method recited in claim 47 wherein the personal information comprises health information.

49. The method recited in claim 47 further comprising:
transmitting the personal information over the public network to an actuary system;
receiving an actuarial score from the actuary system, wherein filtering the personal information comprising ensuring the actuarial score is consistent with the selection criteria of the at least one of the healthcare providers.

50. The method recited in claim 47 further comprising receiving proposed terms for a relationship with the healthcare purchaser from the at least one of the plurality of healthcare providers.

51. The method recited in claim 50 further comprising generating a display for the healthcare purchaser to evaluate the proposed terms.

52. The method recited in claim 50 receiving a modification of the proposed terms for the relationship based on additional information.

53. The method recited in claim 47 further comprising:
receiving an identification of real property financed by the healthcare purchaser;

calculating a total loan value for the real property and specified healthcare costs; and initiating a loan secured by the real property for the total value.

54. The method recited in claim 47 further comprising initiating issuance of a debit instrument to the healthcare purchaser that may be used at the at least one of the plurality of healthcare providers as part of a debit transaction for payment for healthcare products and/or services.

55. A computer-readable storage medium having a computer-readable program embodied therein for directing operation of a computer system for coordinating an electronic healthcare application request between a healthcare purchaser and at least one of a plurality of healthcare providers, the computer system including a communications system, a processor, and a storage device, wherein the computer-readable program includes:
instructions to receive selection criteria from the plurality of healthcare providers;
instructions to receive personal information from the healthcare purchaser over a public network with the communications system;
instructions to filter the personal information to identify the at least one of the plurality of healthcare providers with the processor, each of the at least one of the healthcare providers having selection criteria consistent with the personal information;
and instructions to transmit the personal information over the public network with the communications system to a computer system operated for the at least one of the plurality of healthcare providers.

56. The computer-readable storage medium recited in claim 55 wherein the personal information comprises health information.

57. The computer-readable storage medium recited in claim 55 wherein:
the computer-readable program further includes:
instructions to transmit the personal information over the public network with the communications system to an actuary system; and instructions to receive an actuarial score from the actuary system; and the instructions to filter the personal information comprise instructions to ensure the actuarial score is consistent with the selection criteria of the at least one of the healthcare providers.

58. ~The computer-readable storage medium recited in claim 55 wherein the computer-readable program further includes instructions for receiving proposed terms for a relationship with the healthcare purchaser from the at least one of the plurality of healthcare providers.

59. ~The computer-readable storage medium recited in claim 58 wherein the computer-readable program further includes instructions for generating a display for the healthcare purchaser to evaluate the proposed terms.

60. ~The computer-readable storage medium recited in claim 58 wherein the computer-readable program further includes instructions for receiving a modification of the proposed terms for the relationship based on additional information.

61. ~The computer-readable storage medium received in claim 55 wherein the computer-readable program further includes:
instructions for receiving an identification of real property financed by the healthcare purchaser;
instructions for calculating a total loan value for the real property and specified healthcare costs; and instructions for initiating a loan secured by the real property for the total value.

62. ~The computer-readable storage medium recited in claim 55 wherein the computer-readable program further includes instructions for initiating issuance of a debit instrument to the healthcare purchaser that may be used at the at least one of the plurality of healthcare providers as part of a debit transaction for payment of healthcare products and/or services.

63. ~A method of securitizing a network to a group of homes, the method comprising:
receiving, at a host system, an identification of real property for one of the homes;

calculating, with the host system, a total loan value for the real property that includes a network access charge representing a unit cost for establishing a network connection from the real property to a network operations center to access telecommunications services and includes an activation cost for activating the network connection; and initiating, with the host system, a loan secured by the real property for the total loan value.

64. ~The method recited in claim 63 further comprising initiating issuance of an investment coupon to an investor to generate funds to finance costs for establishing the network connection.

65. ~The method recited in claim 64 wherein the investment coupon includes an undivided interest in the network.

66. ~The method recited in claim 64 wherein the investment coupon is issued according to a first-in-first-out formula.

67. ~The method recited in claim 64 wherein the investment coupon is issued for a cost approximately equal to the unit cost.

68. ~The method recited in claim 64 further comprising initiating redemption of the investment coupon.

69. ~The method recited in claim 68 wherein redemption of the investment coupon is initiated in response to closing the loan.

70. ~The method recited in claim 63 wherein the unit cost comprises a cost for establishing a network connection from the real property to a local distribution center and a cost for establishing a network connection from the local distribution center to the network operations center.

71. ~The method recited in claim 63 wherein the telecommunications services comprise at least one of voice, video, data, and home-security services.

72. ~The method recited in claim 63 wherein the network comprises a fiber network and the network connection comprises a fiber network connection.

73. ~The method recited in claim 63 wherein the network comprises a high-speed wireless network and the network connection comprises a high-speed wireless connection.

74. ~A method of securitizing a network to a group of homes, the method comprising:
initiating, with a host system, issuance of a plurality of investment coupons to investors to generate funds to finance costs for establishing the network, wherein each of the investment coupons includes an undivided interest in the network.

75. ~The method recited in claim 74 wherein the investment coupons are issued according to a first-in-first-out formula.

76. ~The method recited in claim 74 further comprising initiating redemption of at least one of the investment coupons.

77. ~The method recited in claim 76 wherein redemption of the at least one of the investment coupons is initiated in response to closing a loan for purchase of one of the homes.

78. ~The method recited in claim 74 wherein the network comprises a fiber network and the network connection comprises a fiber network connection.

79. ~The method recited in claim 74 wherein the network comprises a high-speed wireless network and the network connection comprises a high-speed wireless network connection.