System and methods for syndication of financial obligations

• US 20020116327A1
• Filed: 12/04/2001
• Published: 08/22/2002
• Est. Priority Date: 12/04/2000
• Status: Abandoned Application

• Current Assignee: Cortera, Inc. (Moody's Corporation)
• Original Assignee: Cortera, Inc. (Moody's Corporation)
• Inventors: Srinivasan, Venkatesan
• Application Number:
  US10/010,767
• Publication Number:
  US 20020116327A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06F 9/546 Message passing systems or structures, e.g. queues
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for syndicating financial obligations, such as loans, leases, letters of credit, lines of credit, factoring arrangements, and so on. The financial obligations may be prospective obligations, i.e., the obligations may not yet be assumed by any party, or be existing obligations, i.e., the obligations may have been already assumed by at least one entity. An example of a prospective financial obligation may be a loan application that has not yet been approved, but that is being syndicated in an effort to approve a portion of the loan application. Syndication partners may be automatically selected and requested to join in a syndication of one or more financial obligations.

Claims

1. A system for syndicating financial obligations, comprising:

a process controller that receives information regarding a financial obligation of a first entity that has not been approved by the first entity; and

a syndication module that automatically sends information regarding the financial obligation to prompt a decision from a second entity different from the first entity about assuming at least a portion of the financial obligation.

2. The system of claim 1, wherein the syndication module analyzes at least part of the information regarding the financial obligation to select the second entity.

3. The system of claim 1, wherein the financial obligation is a loan.

4. The system of claim 1, wherein the financial obligation includes a loan that has not been approved by the first entity.

5. The system of claim 1, further comprising a process module adapted to determine whether the first entity will accept the financial obligation, and wherein the financial obligation includes a loan, the process module determining that the loan is approved by the first entity after a decision is made for the second entity to assume at least a portion of the financial obligation.

6. The system of claim 1, further comprising a process module adapted to determine whether the first entity will accept the financial obligation, and wherein the financial obligation is a loan and the first entity is a first lender, the process module determining that the first lender will approve the loan after a decision is made for the second entity to assume a risk of at least a portion of the loan.

7. The system of claim 1, further comprising:

a first lender process module that processes the information regarding the financial obligation received by the process controller and determines whether the first entity will accept the financial obligation; and

a second lender process module that receives the information from the syndication module and determines if the second entity will accept at least a portion of the financial obligation.

8. The system of claim 7, wherein the first lender process module determines that the first entity will not accept the financial obligation.

9. The system of claim 7, wherein the first lender process module determines that the first entity will accept only a portion of the financial obligation, and the second lender process module determines that the second entity will accept another portion of the financial obligation.

10. The system of claim 1, wherein the process controller receives information regarding a plurality of financial obligations of the first entity, and the syndication module sends information regarding the plurality of financial obligations so that decisions are made for at least one other entity whether to accept a portion of the plurality of financial obligations.

11. The system of claim 1, wherein the syndication module selects the second entity based on one of a credit risk posed by the financial obligation, and a geographic parameter related to the financial obligation.

12. The system of claim 1, wherein the syndication module is adapted to auction portions of a financial obligation or a portfolio of financial obligations to a plurality of entities.

14. The method of claim 13, further comprising analyzing at least a portion of the information regarding the financial obligation to select the second entity.

15. The method of claim 13, wherein the financial obligation is a loan.

16. The method of claim 13, wherein the financial obligation includes a loan that has not been approved by the first entity.

17. The method of claim 13, further comprising:

receiving information representing a decision of the second entity to assume at least a portion of the financial obligation; and

receiving information representing a decision of the first entity to approve the financial obligation after receiving information representing a decision of the second entity.

18. The method of claim 13, further comprising receiving information representing a decision of the first entity to approve the financial obligation.

19. The method of claim 13, further comprising:

automatically processing the information regarding the financial obligation and determining whether the first entity will accept the financial obligation;

receiving the information automatically sent regarding the financial obligation to prompt a decision made for the second entity; and

determining whether the second entity will accept at least a portion of the financial obligation.

20. The method of claim 19, wherein the step of automatically processing the information comprises determining that the first entity will not accept the financial obligation.

21. The method of claim 19, wherein the step of automatically processing the information comprises determining that the first entity will accept only a first portion of the financial obligation, and the step of determining whether the second entity will accept at least a portion of the financial obligation comprises determining that the second entity will accept a second portion of the financial obligation.

22. The method of claim 13, wherein the step of receiving information regarding a financial obligation of a first entity comprises receiving information regarding a plurality of financial obligations of the first entity, and the step of automatically sending information regarding the financial obligation comprises sending information regarding the plurality of financial obligations so that decisions are made for at least one other entity whether to accept a portion of the plurality of financial obligations.

23. The method of claim 13, further comprising selecting the second entity based on one of a credit risk posed by the financial obligation, and a geographic parameter related to the financial obligation.

24. The method of claim 13, further comprising auctioning portions of a financial obligation or a portfolio of financial obligations to a plurality of entities.

26. The system of claim 25, wherein the syndication module analyzes at least a part of the information regarding the financial obligation to identify the at least one second entity.

27. The system of claim 25, wherein the financial obligation is a loan.

28. The system of claim 25, wherein the financial obligation includes a loan that has not been approved by the first entity.

29. The system of claim 25, wherein the financial obligation includes a loan that has been approved by the first entity.

30. The system of claim 25, wherein the financial obligation is a loan and the first entity is a first lender that approved the loan.

31. The system of claim 25, further comprising:

a first lender process module that processes the information regarding the financial obligation and determines whether the first entity will accept the financial obligation; and

a second lender process module that receives the information from the syndication module and determines if the at least one second entity will accept at least a portion of the financial obligation.

32. The system of claim 31, wherein the first lender process module determines that the first entity will not accept the financial obligation.

33. The system of claim 31, wherein the first lender process module determines that the first entity will accept only a portion of the financial obligation, and the second lender process module determines that the second entity will accept another portion of the financial obligation.

34. The system of claim 25, wherein the process controller receives information regarding a plurality of financial obligations of at least the first entity, and the syndication module sends information regarding the plurality of financial obligations so that decisions are made for at least one other entity whether to accept a portion of the plurality of financial obligations.

36. The method of claim 35, wherein the step of automatically selecting a second entity comprises analyzing the information regarding the financial obligation to select the second entity.

37. The method of claim 35, wherein the financial obligation is a loan.

38. The method of claim 35, wherein the financial obligation includes a loan that has not been approved by the first entity.

39. The method of claim 35, further comprising:

receiving information representing a decision of the second entity to assume at least a portion of the financial obligation; and

receiving information representing a decision of the first entity to approve the financial obligation after receiving information representing a decision of the second entity.

40. The method of claim 35, further comprising receiving information representing a decision of the first entity to approve the financial obligation.

41. The method of claim 35, further comprising:

automatically processing the information regarding the financial obligation and determining whether the first entity will accept the financial obligation;

receiving the information automatically sent regarding the financial obligation to prompt a decision made for the second entity; and

determining whether the second entity will accept at least a portion of the financial obligation.

42. The method of claim 41, wherein the step of automatically processing the information comprises determining that the first entity will not accept the financial obligation.

43. The method of claim 41, wherein the step of automatically processing the information comprises determining that the first entity will accept only a first portion of the financial obligation, and the step of determining whether the second entity will accept at least a portion of the financial obligation comprises determining that the second entity will accept a second portion of the financial obligation.

44. The method of claim 35, wherein the step of receiving information regarding a financial obligation of a first entity comprises receiving information regarding a plurality of financial obligations of the first entity, and the step of automatically sending information regarding the financial obligation comprises sending information regarding the plurality of financial obligations so that decisions are made for at least one other entity whether to accept a portion of the plurality of financial obligations.

45. The method of claim 35, wherein the step of automatically selecting a second entity comprises selecting the second entity based on one of a credit risk posed by the financial obligation, and a geographic parameter related to the financial obligation.

46. The method of claim 35, further comprising auctioning portions of a financial obligation or a portfolio of financial obligations to a plurality of entities.

48. A computer readable storage medium including instructions to cause a data processing system to perform the steps of claim 47.

13. A method for syndicating financial obligations, comprising:

receiving electronic information regarding a financial obligation of a first entity that has not been approved by the first entity; and

automatically sending information regarding the financial obligation to prompt a decision by a second entity different from the first entity about assuming at least a portion of the financial obligation.

25. A system for syndicating financial obligations, comprising:

a process controller that receives information regarding a financial obligation of a first entity; and

a syndication module that identifies at least one second entity different from the first entity as a possible syndication partner without prompting from the at least one second entity and automatically sends information regarding the financial obligation to prompt a decision by the at least one second entity about assuming at least a portion of the financial obligation.

35. A method for syndicating financial obligations, comprising:

receiving electronic information regarding a financial obligation of a first entity;

automatically selecting a second entity different from the first entity as a possible syndication partner; and

automatically sending information regarding the financial obligation to prompt a decision by a second entity about assuming at least a portion of the financial obligation.

47. A method for syndicating at least one loan obligation, comprising:

receiving electronic information regarding a loan obligation of a first entity;

automatically selecting a second entity different from the first entity as a possible syndication partner in a syndication of the loan obligation; and

automatically sending computer-readable information regarding the loan obligation to prompt a decision by a second entity about assuming at least a portion of the financial obligation.

49. A method for syndicating a financial obligation, comprising:

receiving electronic information regarding a loan transaction;

determining whether to decline or approve the loan transaction;

determining to syndicate the loan transaction;

automatically selecting syndication partners; and

sending electronic information to prompt a decision by the syndication partners whether to join in the syndication of the loan transaction.