WO2002037367A1 - Systeme de titrisation automatise - Google Patents

Systeme de titrisation automatise Download PDF

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Publication number
WO2002037367A1
WO2002037367A1 PCT/US2001/022612 US0122612W WO0237367A1 WO 2002037367 A1 WO2002037367 A1 WO 2002037367A1 US 0122612 W US0122612 W US 0122612W WO 0237367 A1 WO0237367 A1 WO 0237367A1
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WO
WIPO (PCT)
Prior art keywords
risk
plural
series
parameters
computer program
Prior art date
Application number
PCT/US2001/022612
Other languages
English (en)
Inventor
Timothy Keough
Gregory Keough
Original Assignee
Latimae Corporation
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Latimae Corporation filed Critical Latimae Corporation
Priority to AU2001290513A priority Critical patent/AU2001290513A1/en
Publication of WO2002037367A1 publication Critical patent/WO2002037367A1/fr

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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Definitions

  • the present invention is directed to a method and system for acquiring customizable securitizations, and more particularly, according to one embodiment, for acquiring a diversified set of securitizations designed to target a specified risk group.
  • loans of a particular type are originated by one lender and later purchased by another lender.
  • loans of a particular type e.g., 30 year conforming loans
  • Such products include, but are not limited to, customizable mortgages, trading accounts, bank products (e.g., loans and deposit accounts), and insurance.
  • Figure 1 is a schematic illustration of a computer system according to one embodiment of the present invention
  • Figure 2 is a screenshot of an exemplary interface for entering or viewing exemplary closing costs associated with a customizable loan
  • Figure 3 is a screenshot of an exemplary interface for displaying a table of contents for use with entering data relating to a customizable loan;
  • Figure 4 is a screenshot of an exemplary interface for entering mortgage type and term information
  • Figure 5 is a screenshot of an exemplary interface for entering property information
  • Figure 6 is a screenshot of an exemplary interface for entering information about the borrower/co-borrower.
  • Figure 7 is a screenshot of an exemplary blank summary report that is dynamically filled out and transmitted as a result of an attempt to qualify a loan.
  • FIG. 1 is a schematic illustration of a computer system for providing customizable securitizations.
  • a computer 100 implements the method of the present invention, wherein the computer housing 102 houses a motherboard 104 which contains a CPU 106, memory 108 (e.g., DRAM, ROM, EPROM, EEPROM, SRAM, SDRAM, and Flash RAM), and other optional special purpose logic devices (e.g., ASICs) or configurable logic devices (e.g., GAL and reprogrammable FPGA).
  • a CPU 106 e.g., DRAM, ROM, EPROM, EEPROM, SRAM, SDRAM, and Flash RAM
  • other optional special purpose logic devices e.g., ASICs
  • configurable logic devices e.g., GAL and reprogrammable FPGA
  • the computer 100 also includes plural input devices, (e.g., a keyboard 122 and mouse 124), and a display card 110 for controlling monitor 120.
  • the computer system 100 further includes a floppy disk drive 114; other removable media devices (e.g., compact disc 119, tape, and removable magneto-optical media (not shown)); and a hard disk 112, or other fixed, high density media drives, connected using an appropriate device bus (e.g., a SCSI bus, an Enhanced IDE bus, or a Ultra DMA bus).
  • the computer 100 may additionally include a compact disc reader 118, a compact disc reader/writer unit (not shown) or a compact disc jukebox (not shown).
  • the system includes at least one computer readable medium.
  • Examples of computer readable media are compact discs 119, hard disks 112, floppy disks, tape, magneto-optical disks, PROMs (EPROM, EEPROM, Flash EPROM), DRAM, SRAM, SDRAM, etc.
  • the present invention includes software for controlling both the hardware of the computer 100 and for enabling the computer 100 to interact with a human user.
  • Such software may include, but is not limited to, device drivers, operating systems and user applications, such as development tools.
  • Such computer readable media further includes the computer program product of the present invention for providing customizable risks and/or securities.
  • the computer code devices of the present invention can be any interpreted or executable code mechanism, including but not limited to scripts, interpreters, dynamic link libraries, Java classes, and complete executable programs.
  • the computer code devices can be downloaded dynamically from a computer network adapter acting as an equivalent to a computer readable medium.
  • the present invention facilitates producing and administering loans across countries, languages, and currencies.
  • a system enhances integrated online electronic network-based (e.g., Internet-based) promotion, origination, processing, evaluation, underwriting, verification, closing, validation, warehousing, bundling of asset-backed securities, marketing of the asset-backed securities, and final sale of asset-backed securities in the secondary marketplace to investors.
  • the purchase of loans according to the present invention can be on a case-by-case basis or through the bulk purchase of an existing portfolio of loans (e.g., the system accepts (1) a single loan application to see if it qualifies or (2) a group loan application for the purchase of a group of loans from a portfolio at one time).
  • the present invention preferably connects plural computers via a wide area network (e.g., the Internet or a wireless network (RF or IR)).
  • a wide area network e.g., the Internet or a wireless network (RF or IR)
  • financial institutions, their agents, or other providers of loans are able to (1) view loan products that are available and meet specified criteria, (2) pre-qualify for specific loan products, and (3) receive a real time loan quotes (e.g., including monthly payment, origination costs, inspection costs, appraisal costs, and other information such as one might find in a good faith estimate of closing costs).
  • Figure 2 provides an exemplary form interface for entering closing cost information.
  • a web server queries a database that stores the real-time information and integrates the real-time information with the form interface to provide a quote.
  • Exemplary embodiments of web servers utilize Active server pages or Java server pages with database connectivity programming interfaces.) Moreover, the querying capability of the system can be incorporated into portal websites, bank websites, kiosks and other electronic distribution systems so that consumers also can directly enter their information and receive a real time approval for loan applications.
  • a remote terminal e.g., PC, cell phone, PDA
  • FIG. 3 utilizes a Web interface, other interfaces may also be used.
  • a database preferably serves as the back-end of the web server providing information.
  • a database can be any commercial database (e.g., Oracle ⁇ ), but preferably includes a database supporting a high number of transactions per second.
  • a file-server with file locking may be used to store the information instead.
  • the system contractually obligates the requestor to sell its loan.
  • the obligation can be for (1) a single loan, (2) a completed portfolio, or (3) an open portfolio to be completed by a specified date.
  • the present invention enables lenders to set forth a price and timeframe within which a buyer will purchase the loans that the seller originates.
  • lenders it is preferable to use an electronic, real-time lock in of pricing, loan pool size, quality, and other data specifics.
  • both the sellers and buyers have online access which allows them to know (preferably in real time) which percentage of the commitment has been reached.
  • the systems for creating obligations and tracking obligations need not be a single system but may be distributed among plural systems.
  • each participating financial institution is provided with a unique identifier.
  • separate unique identifiers are preferable for branch offices and distinct individuals within the institutions.
  • an institution and its brokers and agents can be tracked for all their activities (e.g., the status of any and all information or loans they have entered into the system), and preferably includes tracking down to the keystroke/mouse-click level for greatest accountability.
  • at least one level of passwords is used to authenticate institutions and brokers/agents.
  • Agents/brokers also will have an online profile with the ability to interact with others through e-mail, instant messaging and chat. Those profiles allow users to have certain level of authorization and also have an overview of the training received, and automatic updates of when new training is necessary or when the person has not completed training and is not authorized to use a feature. For the import and export of data the system interfaces with available underwriting programs. The users can be verified through the use of digital certificates and digital Ids. Additionally, the user authentication is enabled to limit user access based upon the location from which a user is accessing the system (e.g., remotely through dial-up, through corporate intranet, etc.).
  • the present invention utilizes a unique identifier for each transaction (e.g., using a transaction number or code), as shown in Figure 4.
  • This unique identifier can be generated either manually (which may be slow based on the necessity to be unique) or automatically as new loans are processed.
  • additionally tracked information includes, but is not limited to: institution name and unique identifier number, unique case number, borrower's full name, date of birth, government issued id number (social security number, cedula, or government issued unique personal identification number, etc.), loan type, credit report status and results, underwriting status, last time file was changed or update for all information, underwriting recommendation (e.g., level 1, level 2, level 3, ... level n, where each level represents a different risk level), underwriting date, and case creation date and by whom.
  • the unique identifier can be used as a primary key into any of the tables that store information about the specified loan.
  • Each applicant is also assigned a unique applicant identifier number that enables them to be tracked over the life of their credit experience. This applicant identifier is also correlated with their credit report/history. Moreover, when common identifiers are used between risks, it is possible to learn more about the global risks of the applicant (e.g., his driving record from his car insurance, his payment history from his loan application, and whether he uses direct deposit to reduce control income). Using this feature, it is possible to pre-populate data fields in forms from applicants that previously applied for a loan through the system. In an institution with multiple branches the system assigns subset numbers to each branch allowing the institutions to track productivity by branch, supervisor, and individual loan officer.
  • Case Files may include (1) both standard and abridged versions and (2) a Case file summary window allowing user to see key data at a glance.
  • the present invention further facilitates importing and exporting loan information, printing, modifying, sharing, and electronically sending files and deleting Loan Case Files within the system.
  • Financial Institutions set up their pricing rationale for loan products, and the system keeps it constantly updated in real time. For example, a party provides its formula for loan rates and calculation methods 2% over LIBOR etc., and the system automatically updates the benchmark rate (in this case Libor) and calculates the exact rate to be charged based on the formula entered. The rate is updated substantially every time the benchmark rate changed.
  • the system allows different variables of pricing to be entered depending on the person applying for the loan.
  • the system generates special parameters (e.g., rates or closing costs) depending on the individual applicant (for example, if the lender wanted to provide (1) a 25 basis point discount or (2) a closing cost discount for anyone who had an income over $100,000 and lived in a certain area of town). Special parameters (e.g., rates or closing costs) could also be set up for brokers, agents, branches, etc.
  • the system further facilitates rate negotiation by allowing participants to request a lock on a rate, select a price for a rate lock, request a negotiated rate lock, and cancel a rate lock (e.g., for brokers working with a specific financial institution).
  • rate negotiation by allowing participants to request a lock on a rate, select a price for a rate lock, request a negotiated rate lock, and cancel a rate lock (e.g., for brokers working with a specific financial institution).
  • the system interfaces with available underwriting programs. Specific institutions may also modify their rules for pricing to allow real-time pricing exactly as the institution currently prices their loan products.
  • the present invention allows settlement parameters (e.g., closing costs) to be negotiated as well. This enables buyers and sellers to have a complete picture of their respective responsibilities.
  • the integrated underwriting process allows users to enter and save borrowers' information with automated validation of all information fields.
  • the system walks the user through all the necessary tasks step-by-step.
  • Each field is filled out with the aid of integrated real time help (e.g., by clicking on a word to receive a full explanation as to what needs to be entered in each field).
  • fully automated help is available including all underwriting guidelines, glossary, LTV, Amortization and payment schedules, automatic tip sheets, integrated local regulatory requirements, updates/new system features, and searchable full text based help, and video help with in language answers to common consumer questions.
  • the help is customized to the user's language of choice.
  • the application itself contains all borrower information including personal data, work, credit, family background, type of loan, purpose of loan, exact specifications as to product to be secured by the loan, origin of product and all other details that may be pertinent to the process. Additional exemplary application data is shown in Appendix I.
  • the user By presenting the information to the automated underwriting system the user gets a response as to whether the loan meets the underwriting criteria.
  • the underwriting system makes automatic calculations based on all the data points listed on the Loan Application to determine whether it meets the specified criteria.
  • the system also determines if the loans comply with local government agencies' loan programs or other requirements for them to be accepted.
  • the underwriting technology also includes worksheets that allow the user to make exact calculations for the various data points that need to be entered and automatically sums up or delivers the solution.
  • the automated underwriting system dynamically generates and displays the next fields and windows to be completed depending on the previously entered information.
  • Each of the individual processes can be completed in one time or can be saved and started again with the state of the art process being stored and accessible by name, unique case number or other data field.
  • This allows the underwriter or user to finish the process in the data field and location where the user left off.
  • the state of the process may also be archived for future retrieval by the financial institution or the consumer soliciting their loan, forming a virtual storage place for their credit information including loan application, credit report, appraisal information, loan documentation, and all other applicable loan related information.
  • This information may be retrieved via a remote terminal (e.g., cell phone, PDA or other electronic devices across a wide area network).
  • the data is automatically saved in the system (back up times will vary and will have the ability to be adjusted), but the user can also save in a manual fashion.
  • the system automatically checks all documents and data fields to ensure that they are complete. Such checking can be performed using client-side scripting (e.g., using Javascript). If the data fields, documentation or any other item is not complete, the system automatically identifies which areas are incomplete and brings the user directly to the section(s) that need to be completed so the user can enter the information directly.
  • the system validates that all information is present and has an automated check sheet prior to processing the request for qualification under the system. Moreover, the actual values can undergo domain checking (e.g., to ensure that dates, telephone numbers, postal codes, etc. are entered in their proper formats and within valid ranges).
  • the system allows the user to automatically calculate front and back end ratios, LTV, credit score, and merged credit report coupled with other information to arrive at an underwriting decision.
  • the system utilizes security protocols to assure that the person is authorized to conduct the transaction.
  • online forms allow users to enter and save borrowers information with automated validation of all information fields.
  • the system steps the user through all the necessary tasks and areas to fill out the forms and provides integrated, fully automated, real time help functionality (e.g., by clicking on any word etc. to receive a full explanation as to what needs to be entered in each field).
  • the help system includes all underwriting guidelines, glossary LTV, Amortization and payment schedules, automatic tip sheets, integrated local regulatory requirements, updates/new system features, and searchable full text based help, and video help all localized to the consumers language of choice.
  • the application itself will contain all borrower information including personal data, work, credit, family background, type of loan, purpose of loan, exact specifications as to product to be secured by the loan, origin of product and all other details that may be pertinent to the process.
  • the user is told what percentage of the overall application they have completed and how much additional time is estimated to complete the application.
  • the application includes worksheets that allow the user to make exact calculations for the various data points that need to be entered and automatically sums up or delivers the solution.
  • the automated loan underwriting system automatically generates and displays the next fields and windows to be completed depending on the previously entered information.
  • the system determines whether the abridged version application forms may be used and provides the ability to enter, save, manipulate, and query borrowers information with automated validation of all information fields.
  • the abridged versions use less data points then the traditional and full system and provide the potential for speedier decision making.
  • the system provides a step by step system aiding people to determine whether the client qualifies for an abridged application as well as explaining all documentation necessary for any type of application.
  • the present invention provides an affordability analysis that determines whether, based on the current criteria, the consumer has the capacity to repay the loan and automatically calculates from the data points on the loan application whether the applicant is qualified.
  • the loan analysis system analyzes the loan, borrower, secured property data of all loans entered and generates automated responses, makes suggestions, recommendations, approval, denial, approval conditions necessary, calculations, and statistics regarding the specific loan and the ability for it to be sold for securitization, and generally whether the loan meets established criteria for acceptance.
  • the system and reports also provide detailed information as to further information needed and automates the process that (1) takes the lender step by step through what must be asked and/or confirmed to receive a definitive answer or (2) legal and/or other documentation needed in the case of a denial.
  • the present invention also provides an automated way for the user to acknowledge all the representations, conditions and warranties necessary for the system to process, verify, and provide a response to the query and use the system.
  • the system establishes the specific requirements needed for income and employment verification. If done manually this will detail what must be done and specific documents and processing needed.
  • the system will also have the ability to electronically check and reconcile the information on income and employment provided on the loan application through automated interfaces with other database systems. (For example, the system can connect via OFX, IFX, FIX, XML, etc. to verify account numbers and balances automatically for both assets and liabilities.) This provides full online and electronic verification and processing.
  • the system is also designed to allow for immediate and electronic data exchange with employers directly to perform information validation with the employers.
  • the system establishes the specific requirements needed for asset processing and verification. If done manually this will detail what must be done and specific documents and processing needed.
  • the system will also have the ability to electronically check and reconcile the information on assets provided on the loan application. This would provide for the full online and electronic verification and processing.
  • the system allows for the electronic integration into the credit agencies and internal banks systems, or other repositories or databases of credit information, so that user can request, reissue, or print and review a credit report. Merged credit reports from a variety of credit reporting agencies will also be available. The system will also automatically bill the user for credit reports issued and the user will have to confirm that they want to proceed with this feature prior to execution of this item. Credit reports can be ordered automatically after providing the data necessary in the application (the user will also be able to get credit reports issued on a stand alone basis as well if they desire). The user will be able to maintain their current username and pin number of the Credit agency. If you already have a printed report from the credit agency you can put in your report number and the system will merge electronically that information to avoid re- entering data.
  • the system also includes the ability to receive multiple credit reports simultaneously and merge them for joint or co-signed applications.
  • the system has the ability to forward electronically or make accessible via electronic means to the consumer the results of their credit report. Additionally, the system is able to pre-populate credit report data into all applicable aspects of the application, and other pertinent areas where the data is required. The ability for the credit report data to be pre populated into all applicable aspects of the application, and other pertinent areas where the data is required.
  • the system will also alert the user as to the status of the credit report whether it is in process, complete, not requested, or there was an error with the system.
  • the system will have the ability to determine when items from the application and the credit report match (for example if the liability balance matches but the account number is off by one digit will be able to make a suggestion to verify as this is likely an error of data entry). As the system can automatically match liabilities entered in the loan application to the credit report it will also provide the ability to unmatch these items if so desired. The user of the system can also opt to omit liabilities on the credit report if so desired (i.e. in the event a debt is duplicated or doesn't belong to borrower). The user will also have the ability to delete completely liabilities from the system if so desired.
  • the system provides the ability to automatically reconcile liabilities and real estate owned, match and unmatch liabilities, omit include and copy liabilities, delete, edit, and otherwise alter or indicate a liability that will be paid by closing, This ability will be an automated function of the system allowing the information from any source to be automatically reconciled with the information already entered into the application and will also allow the user to edit, change, copy and modify this information if desired.
  • the system will also highlight matched and unmatched items of liability from real estate owned and provide a total for all items.
  • the system will have the ability to determine when items from the application and the real estate owned or other credits match (for example if the address on a property owned matches but the street number is off by one digit will be able to make a suggestion to verify as this is likely an error of data entry).
  • the system can automatically match other credits, etc. entered in the loan application to the credit report and the electronic asset verification mechanism, it will also provide the ability to unmatch these items if so desired.
  • the user of the system can also opt to omit other credits, etc. on the credit report if so desired (i.e. in the event the item is duplicated or doesn't belong to borrower).
  • the user will also have the ability to delete completely other credits, etc. from the system if so desired.
  • the system automatically notifies an appraiser to visit a property to conduct an appraisal and indicate what level of report he must produce.
  • the appraiser will have the ability to fill out the appraisal report and submit the documentation online. This section will also have an online help section to guide appraisers through the process.
  • Appraisers can fill out appraisal forms via PDA, cell phone, pager, or other wireless device to quickly and electronically update the appraisal portion of the process to the system.
  • Lenders and consumers will also be able to automatically track the status of this process online and upon completion have stored an electronic version of the appraisal report for their review/access.
  • Some of the areas that the appraisers will cover online include: Appraisal and documentation requirements, Appraisal Reports, Property Documentation guidelines, Exterior only property inspections, Sales comparison analysis, Standards of Professional Appraisal Practice, Required exhibits, and Approved companies for Appraisal and automatic notification.
  • the system automates the online appraisal system which allows full integration to the abridged format may be appropriate whereby appraisal is not necessary.
  • the automatic appraisal process can also be skipped, in the event that the appraisal needs to be done in a paper based fashion. This allows for inherent flexibility in the system.
  • the user will be able to track the status of the loan-processing request in real time and be informed when there is a response. Processing can be done in batch mode or on a case-by-case basis.
  • the system will further integrate electronic request, approval and issuance of title insurance, flood insurance, mortgage insurance, notarize, pay property taxes, transfer title documentation, register and verify the title information, and appraisal of the property on which the loan is taken.
  • the system incorporates advanced notification mechanisms to alert all individuals in the process of status changes through email, instant messaging, paging, wireless devices, and other devices. Lenders using the system as their originating system internally are able to mark whether loans are for securitization or will be held by the financial institution.
  • Underwriting Reports may include at least any of the following: Underwriting Findings Report, Credit Summary Report, Credit Report minor derogatory credit table, Balance summary from underwriting analysis, Credit Report Major derogatory credit, Underwriting Analysis Report (e.g., housing and total expense ratio calculations).
  • the system allows users to enter a full credit application and receive an automated response underwriting recommendation (e.g., level 1, level 2, level 3, ... level n, where each level represents a different risk level).
  • an automated response underwriting recommendation e.g., level 1, level 2, level 3, ... level n, where each level represents a different risk level.
  • the system may automatically send by email/fax/or regular mail all necessary documentation or information to complete the process (i.e. additional documentation needed) or to respond with the definitive decision.
  • the system will have the option to automatically send by email/fax/or regular mail all necessary documentation to comply with local legal requirements.
  • the information included with any decision will be underwriting findings including recommendations and next steps.
  • Brokers will be able to transmit directly to the financial institution or to the system for approval, where the system will process and signal whether a loan will be purchased and secondly whether the loan meets the acceptable profile for the financial institution (complies with the guidelines established for purchase between the system and the financial institution).
  • the decisions generated by the system can be sent via email, phone PDA, or other devices.
  • This notification can be made simultaneously to any of the parties involved in the process (e.g., broker, consumer, etc.). Notification can be available via email alert or WAP-enabled cellular phone or other such device. Access to system will be possible via PDA, PC, cellular phone, etc. Information that is emailed, uploaded, faxed, or entered is all stored and uniquely related to one another, combining to automatically form a unified view of the application and all the associated documentation.
  • Quality Control and Post Purchase Reviews include specifying Quality control requirements and Post purchase review procedures.
  • the system Upon receiving an application the system will be able to automatically assign the level of credit enhancement needed and have both manual and electronic interfaces with providers of credit enhancement.
  • the users of the system will be able to automatically put together loans in tranches to create customized tranches of asset backed securities or will be able to purchase pre developed packages.
  • the grouping need not be based on a single country, language, currency or set of risk factors. Conversion factors (e.g., currency conversions) and translation engines facilitate this multi-parameter interaction. In fact, by specifying varying parameters, it is possible to establish a diversified loan portfolio that spreads the risks associated with any one type of instrument.
  • Purchasers will be able to get automatic alerts as to when a certain class, type or security is available.
  • the system will also automatically inform a user of changes in the status of the underlying securities via electronic means (email, pager, WAP-enabled cell phone, PDA, etc.).
  • electronic means electronic means (email, pager, WAP-enabled cell phone, PDA, etc.).
  • PDA personal digital assistant
  • the system also provides the ability for investors to track how they are doing based on their goals.
  • Each person who enters information into the system will have an online profile the ability to interact with others through instant messaging and chat. These profiles will allow users to have certain level of authorization and also have an overview of the training received, and automatic updates of when new training is necessary or when the person has not completed training and is not authorized to use a feature.
  • the system will also allow for the automatic notification of procedures that need to be undertaken.
  • the system also provides the ability to create customized asset backed securities by picking specific tranches to diversify risk (e.g., country, location in country, borrower profile, credit score, specific type of asset backed security, currency etc%) and offers the ability to make changes in real time.
  • risk e.g., country, location in country, borrower profile, credit score, specific type of asset backed security, currency etc.
  • the system automatically bills and debits electronically for all use of the system on a monthly basis by all financial institutions.
  • the system monitors the status of the loans in that all purchasers or users will be able to view an individual loan to see if it is up to date and will have a system whereby the current status of a loan can be viewed by the debtor, loan issuer, or purchaser of the loan as part of an asset backed security.
  • passwords provide at least one level of authentication in the system. All security protocols to stop people from accessing certain information and the ability to limit the information to which anyone client can access information down to the data point level. All data is stored electronically in the secure server farm. Security and authentication mechanisms include: SSL, Secure ID, Digital Certificates, Digital Ids, virtual private network (VPN) connections, IP/Subnet level monitoring, authentication and blocking, etc.
  • the automated system generates reports and query functionality along any of the entered parameters or determination characteristics.
  • the system automatically generates a report as to a timeline on when things should be completed for the consumer to understand the logical timeframes. These reports will be automatically generated based on loan type, whether it will be abridged or standard, and industries processing time history.
  • the system also offers the ability for consumers and businesses to query the database of user profiles in the system. This allows searching capabilities on any of the data points in the consumer data, electronic loan application, payment history, or any other data points stored in the system, as well as drill down to the next level of detail for each of these items.
  • the system will also be allowed to be accessed directly by consumers so that the financial institutions can use this as their mortgage originator on their Internet or electronic sites, including desktops, call centers, etc.
  • the system provides a variety of notification and access mechanisms including, but not limited to, PC, email, phone, PDA, WAP enabled device, etc.
  • asset-backed securities include real estate backed securities
  • other types of assets e.g., vehicles and other products bought on credit
  • the assets would be described electronically so that the purchaser would be able to understand the asset, its condition, its use, etc.
  • the system of the present invention may include video images of the asset that is securing a loan.
  • the present invention can be utilized to customize risk management.
  • traditional securitized loans are for standard rates and standard terms
  • unique rates, terms, prices and financial instruments generally can be created.
  • the system creates the ability to search "by feature” or "by parameter” to find risks that match the specified feature(s) or parameter(s).
  • a price matrix may be created reflecting relevant attributes (e.g., cash flow, including fixed or adjustable, term, rate, and margin where applicable) as well as domain specific features (e.g., LTV, occupancy, property type and loan size for real estate).
  • the system can help a user (buyer or seller) to determine a risk and a value for each asset being purchased.
  • the system learns with data from those people in the field already. For example, as part of a due diligence in transferring a risk from a seller to a buyer, the buyer will receive historical data that can then be input into the system.
  • Overall the risks may be scored and normalized using a variety of factors (e.g., risk for the given industry, or recent risk versus long-term risk).
  • revenue stream Another type of asset that may be securitized is revenue stream.
  • revenue stream exemplary revenue streams, broken down into loose classifications, but any other revenue stream (or risk source) can be securitized accordingly.
  • the payments being securitized are regular or semi-regular, but more infrequent payment sources may be modeled as more risky investments.
  • the examples include (domestic and/or international) revenue streams coming from each of:
  • Utility fees including power, cable, gas, phone, water, garbage collection, recycling, and lawn services
  • Telecommunications fees including ISPs, cell phones, and long distance;
  • Licensing / branding royalties including syndication fees, corporation licensing fees, IP licensing streams (e.g., for sub-licensing the right to use a name or image), recording contracts, advertising streams, movies;
  • Association fees including union dues and membership (e.g., ABA membership)
  • Service industry fees including legal, tax, travel agent, broker fees (personal or online), airline, restaurant fees, ATM fees, credit reports, law suit judgments, authorized reseller fee; and (13) Retirement payments including social security, Medicare/medicaid or other health insurance payouts and life insurance pay outs.
  • Multi-national monetary streams may also be possible using international payment streams (e.g., Visa / Mastercard fees and payments). Such streams would have added risks due to currency valuation changes but may have the added benefit of diversifying the risk over plural currencies that may fluctuate at different rates.
  • international payment streams e.g., Visa / Mastercard fees and payments.
  • an alternate term e.g., yield or up-front payment
  • a known credit risk receiving a payment for social security payments may receive a higher yield than an unknown person whose risk is determined strictly on demographics. This creates a customized per-product, per-person quote using dynamic pricing.
  • risk analysis may include many factors in revenue securitization.
  • the system receives all factors known about a risk (e.g., revenue streams historically, geography, market position, market share, management, patents, trademarks, cash, income streams, years in operation, historical growth, and P/E) and provides those to potential investors as displayable or searchable quantities.
  • the present invention also includes selling risk in the form of an existing or soon to be issued insurance policy.
  • the risk to be insured e.g., a person via health insurance or a doctor via medical malpractice insurance
  • the risk to be insured is described as a series of risk factors (e.g., a time remaining on the policy, number of claims to date) as illustrated above.
  • the purchaser would then be able to review those parameters and filter out (manually or automatically) those risks that do not correspond to the intended risk.
  • the system may generate portfolios of risk where more than one type of security and/or security type are included within the portfolio. For instance the user may specify that it is buying or selling a portfolio using a direct percentage basis (50% asset type t and 50% asset type ). Asset allocations may also be set as relative percentages (10% of the amount of asset typei that can be bought should be bought as 50% asset type 2 ). The allocations may also be set recursively (50% securitized loan (where 50% is domestic and 50% is international), 50% revenue stream (where 50% is international, tax-based, 25% is entertainment-based and 25% is (50% health insurance and 50% malpractice insurance))).
  • the purchaser may specify the number of other purchasers with whom he/she is willing to share the risk. Since there is a risk that the other purchasers may not be able to pay there portion, the risk worthiness of the other purchasers may either be specified like a risk parameter or left as a wildcard.
  • each of the above type of securities act as a negotiable security commodity (hereinafter referred to as a "Keough note”) that can be traded based on its risk factors.
  • the seller describes the Keough note (i.e., the actual risk) that he/she is trying to sell, and it is matched with a virtual risk that represents the Keough note that the buyer wishes to buy.
  • participants may also buy and sell options on Keough notes. Just as the risk parameters were specified for the notes themselves, so they would be specified for the options.
  • the various strike prices would be established at which the buyer could exercise the options. In this way, a buyer of one risk portfolio could hedge his/her risk by buying an option on an alternate (e.g., opposite) position.
  • Section V Monthly Income and Combined Housing Expense Information
  • Occupant (Owner, Tenant, Vacant) Neighborhood or Project Name Project Type (PUD, Condominium) HOA$ /Mo. Sales Price $ Date of Sale
  • Source(s) used for physical characteristics of property (interior and exterior inspection, exterior inspection from street, previous appraisal files, MLS, assessment and tax records, prior inspection, property owner, other)
  • Project type primary residence, second home or recreational, row or townhouse, garden, midrise, highrise

Landscapes

  • Business, Economics & Management (AREA)
  • Accounting & Taxation (AREA)
  • Finance (AREA)
  • Engineering & Computer Science (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Marketing (AREA)
  • Strategic Management (AREA)
  • Technology Law (AREA)
  • Physics & Mathematics (AREA)
  • General Business, Economics & Management (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)

Abstract

L'invention concerne un procédé et un système (102) destinés à la gestion des risques dans un forum de discussion (voir fig. 1). Ce procédé utilise une technique de correspondance des paramètres permettant aux acheteurs et aux vendeurs de différents risques (titres garantis par des actifs, apports de revenus tritrisés, assurance et leurs combinaisons) d'établir un marché électronique dans lequel ces risques peuvent être échangés sous forme de marchandises. La création d'options sur ces marchandises permet une gestion encore meilleure des risques.
PCT/US2001/022612 2000-11-01 2001-08-21 Systeme de titrisation automatise WO2002037367A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2001290513A AU2001290513A1 (en) 2000-11-01 2001-08-21 Automated securitization system

Applications Claiming Priority (2)

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US70280400A 2000-11-01 2000-11-01
US09/702,804 2000-11-01

Publications (1)

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WO2002037367A1 true WO2002037367A1 (fr) 2002-05-10

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PCT/US2001/022612 WO2002037367A1 (fr) 2000-11-01 2001-08-21 Systeme de titrisation automatise

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AU (1) AU2001290513A1 (fr)
WO (1) WO2002037367A1 (fr)

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US7299408B1 (en) 2002-04-01 2007-11-20 Fannie Mae Electronic document validation
US7856397B2 (en) 2002-12-30 2010-12-21 Fannie Mae System and method for creating financial assets
US8571973B1 (en) 2002-12-09 2013-10-29 Corelogic Solutions, Llc Electronic closing
US8688461B1 (en) 2002-03-29 2014-04-01 Fannie Mae Electronic registry for authenticating transferable records
US9477988B2 (en) 2012-02-23 2016-10-25 American Express Travel Related Services Company, Inc. Systems and methods for identifying financial relationships
US9754271B2 (en) 2004-10-29 2017-09-05 American Express Travel Related Services Company, Inc. Estimating the spend capacity of consumer households
US10430890B1 (en) 2016-06-09 2019-10-01 Allstate Insurance Company Image-based processing for products

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US6078904A (en) * 1998-03-16 2000-06-20 Saddle Peak Systems Risk direct asset allocation and risk resolved CAPM for optimally allocating investment assets in an investment portfolio
US6134536A (en) * 1992-05-29 2000-10-17 Swychco Infrastructure Services Pty Ltd. Methods and apparatus relating to the formulation and trading of risk management contracts

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US6134536A (en) * 1992-05-29 2000-10-17 Swychco Infrastructure Services Pty Ltd. Methods and apparatus relating to the formulation and trading of risk management contracts
US6078904A (en) * 1998-03-16 2000-06-20 Saddle Peak Systems Risk direct asset allocation and risk resolved CAPM for optimally allocating investment assets in an investment portfolio

Cited By (17)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US8688461B1 (en) 2002-03-29 2014-04-01 Fannie Mae Electronic registry for authenticating transferable records
US8689094B1 (en) 2002-04-01 2014-04-01 Fannie Mae Electronic document for mortgage transactions
US7818657B1 (en) 2002-04-01 2010-10-19 Fannie Mae Electronic document for mortgage transactions
US8078512B1 (en) 2002-04-01 2011-12-13 Corelogic Real Estate Solutions, Llc Document manifest and publication in association with dataset quality control
US7299408B1 (en) 2002-04-01 2007-11-20 Fannie Mae Electronic document validation
US8301553B1 (en) 2002-04-01 2012-10-30 Fannie Mae Electronic mortgage document certification
US8626647B1 (en) 2002-04-01 2014-01-07 Fannie Mae Electronic mortgage document certification
US8571973B1 (en) 2002-12-09 2013-10-29 Corelogic Solutions, Llc Electronic closing
US8195564B2 (en) 2002-12-30 2012-06-05 Fannie Mae System and method for creating financial assets
US7856397B2 (en) 2002-12-30 2010-12-21 Fannie Mae System and method for creating financial assets
US9754271B2 (en) 2004-10-29 2017-09-05 American Express Travel Related Services Company, Inc. Estimating the spend capacity of consumer households
US9477988B2 (en) 2012-02-23 2016-10-25 American Express Travel Related Services Company, Inc. Systems and methods for identifying financial relationships
US10497055B2 (en) 2012-02-23 2019-12-03 American Express Travel Related Services Company, Inc. Tradeline fingerprint
US11276115B1 (en) 2012-02-23 2022-03-15 American Express Travel Related Services Company, Inc. Tradeline fingerprint
US10430890B1 (en) 2016-06-09 2019-10-01 Allstate Insurance Company Image-based processing for products
US11341580B1 (en) 2016-06-09 2022-05-24 Allstate Insurance Company Image-based processing for products
US11935130B2 (en) 2016-06-09 2024-03-19 Allstate Insurance Company Image-based processing for products

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