Loan product and system and method for providing and monitoring a loan product

• US 20020138410A1
• Filed: 03/21/2001
• Published: 09/26/2002
• Est. Priority Date: 03/21/2001
• Status: Active Grant

• Current Assignee: Thomas G. Siska
• Original Assignee: Thomas G. Siska
• Inventors: Siska, Thomas G.
• Granted Patent: US 7,319,985 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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 method and a Loan product providing for Banks and other large Finance Companies (Intermediaries) to market and fund loan product to its Customers (Borrowers), whereby the entire loan processes are administered by a contracted Finance Company (Contractor) that possess loan, leasing and/or factoring (collectively referred to as a Loan) specialty expertise that the Intermediary does not have or cannot duplicate cost effectively. The Contractor will indemnify and/or insure the Intermediary from loss of principle and interest, thereby eliminating all risk to the Intermediary. Since the Intermediary provides money for the Loan, the cost will be in most cases lower than the cost of money the Contractor can provide directly. The Contractor is able to drastically reduce its marketing costs as volume gets funneled in from its customer Intermediaries. The Borrower benefits from having easier access to the various Loan products and a lower price due to this process. The Intermediary can now serve its customers better, employ funds more efficiently, earn fees for providing marketing services benefitting the Contractor, all while completely eliminating the risk of loss on the contracted Loans.

Claims

1. A method of providing a loan to a borrower comprising the steps of:

offering a loan through a first institution;

providing said loan to said borrower;

providing money for said loan;

collaborating with a second institution for said second institution to monitor said loan;

obtaining said money provided for said loan from said first institution; and

,

obtaining indemnification for said first institution of all risk for providing said money for said loan.

2. The method of claim 1 further comprising the step of:

obtaining said loan in the name of the first institution.

3. The method of claim 2 wherein said indemnification is obtained entirely from said second institution.

4. The method of claim 2 wherein said indemnification is obtained in part from said second institution and in part from an insurance company.

5. The method of claim 1 wherein said first institution is a bank.

6. The method of claim 1 wherein said second institution is a commercial finance company.

7. The method of claim 1 further comprising said first institution marketing said commercial loan to a plurality of commercial borrowers.

8. The method of claim 7 wherein said loan provided to said borrower is a loan not presently offered by said first institution.

9. The method of claim 1 wherein said loan is a high risk loan.

10. The method of claim 1 further comprising said first institution marketing said loan to a plurality of potential borrowers.

11. The method of claim 10 further comprising said second institution obtaining a competitive advantage from said marketing by said first institution.

12. The method of claim 1 further comprising said second institution obtaining a competitive advantage from said providing of money by said first institution.

13. The method of claim 3 further comprising said first institution obtaining a competitive advantage from said obtaining indemnification from said second institution.

15. The method of claim 14 further comprising the steps of:

obtaining said loan in the name of said second institution.

16. The method of claim 15 further comprising obtaining said indemnification entirely from said second institution.

17. The method of claim 15 further comprising obtaining said indemnification in part from said second institution.

18. The method of claim 14 wherein said first institution is a bank.

19. The method of claim 14 wherein said second institution is a commercial finance company.

20. The method of claim 14 further comprising said first institution marketing said commercial loan to a plurality of commercial borrowers.

21. The method of claim 14 wherein said loan provided to said borrower is a high risk loan.

22. The method of claim 14 wherein said loan is a product not presently offered by said first institution.

24. The method of claim 23 further comprising the step of:

providing said first loan in the name of said Intermediary company.

25. The method of claim 23 wherein said Contractor directly provides indemnification for said Intermediary company against 100% of said risk associated with said providing money for said first loan.

26. The method of claim 23 wherein said Contractor providing indemnification for said Intermediary company against part of said risk associated with said providing money for said first risk loan.

27. The method of claim 23 wherein said Intermediary company is a bank.

28. The method of claim 23 wherein said Contractor is a commercial finance company.

30. The method of claim 29 further comprising obtaining collateral from said borrower for said contracted loan product.

14. A method of providing a loan to a borrower comprising the steps of:

offering a loan through a first institution;

providing said loan to said borrower;

providing money for said loan;

obtaining said money provided for said loan from said first institution;

providing indemnification for said first institution of all risk for providing said money for said loan; and

,

administering said loan by a second institution.

23. A method of distributing and monitoring a plurality of loan products marketed by an Intermediary company comprising the steps of:

offering a plurality of loan products through an Intermediary company, said loan products including loans provided directly by said Intermediary company and loans not provided directly by said Intermediary company;

marketing said plurality of loan products to a plurality of potential borrowers;

supplying a borrower a first loan not directly provided by said Intermediary company;

collaborating with a Contractor to actively monitor said loan;

providing money for said first loan from said Intermediary company; and

,

obtaining indemnification for said Intermediary company against all risk associated with providing money for said first loan.

29. A method of providing and managing a loan product comprising the steps of:

offering a plurality of loan products through a bank to a plurality of potential borrowers, said plurality of loan products including loan products directly managed by said bank and contracted loan products;

marketing of said plurality of loan products by said bank to said plurality of potential borrowers;

providing a contracted loan product to a borrower;

supplying money for said contracted loan product from said bank;

collaborating with a commercial finance company to administer said contracted loan product provided to said borrower; and

obtaining indemnification for said bank against all risk associated with said supplying money for said contracted loan product from said commercial finance company.

31. A contracted loan product comprising money supplied from a first institution to a borrower, said money supplied from said first institution insured by a second institution against risk of default of said loan product by said borrower, said loan product actively monitored by said second institution.

32. The contracted loan product of claim 31 wherein said first institution is a bank.

33. The high contracted product of claim 31 wherein said second institution is a commercial finance company.