System, method and computer program for managing credit decisions
First Claim
1. A computer program product for deciding whether to make a loan to an applicant and/or terms of the loan, said computer program product comprising:
- a computer readable medium;
first program instructions to determine credit risk of said applicant;
second program instructions to compute a default probability of said applicant over time based on said credit risk; and
third program instructions for computing a sum of expected profit from said loan based in part on said default probability; and
wherein said first, second and third program instructions are recorded on said medium.
1 Assignment
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Accused Products
Abstract
A system, computer program product and method for deciding whether to make a loan to an applicant and/or terms of the loan. A first program function determines a credit risk of the applicant. A second program function computes a default probability of the applicant over time based on the credit risk. The second program function determines a surviving probability of an applicant based on the applicant'"'"'s credit risk. The second program function determines the default probability for each month of the term of the loan based in part on the surviving probability. A third program function computes a sum of the expected profit during each month of a term of the loan based in part on the default probability.
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Citations
14 Claims
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1. A computer program product for deciding whether to make a loan to an applicant and/or terms of the loan, said computer program product comprising:
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a computer readable medium;
first program instructions to determine credit risk of said applicant;
second program instructions to compute a default probability of said applicant over time based on said credit risk; and
third program instructions for computing a sum of expected profit from said loan based in part on said default probability; and
whereinsaid first, second and third program instructions are recorded on said medium. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A computer system for deciding whether to make a loan to an applicant and/or terms of the loan, said system comprising:
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means for determining credit risk of said applicant;
means for computing a default probability of said applicant over time based on said credit risk; and
means for computing a sum of expected profit from said loan based in part on said default probability.
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8. A computer program product for deciding whether to make a loan to an applicant and/or the terms of the loan, said computer program product comprising:
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a computer readable medium;
first program instructions to determine a credit risk of said applicant;
second program instructions to determine a surviving probability of an applicant based on said credit risk of said applicant;
third program instructions to determine a default probability for each month of a term of said loan based on said surviving probability; and
fourth program instructions to determine an expected profit during the term of said loan based on said default probability; and
whereinsaid first, second, third and fourth program instructions are recorded on said medium. - View Dependent Claims (9, 10)
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11. A computer program product for deciding whether to make a loan to an applicant and/or the terms of the loan, said computer program product comprising:
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a computer readable medium;
first program instructions to determine a risk model for said applicant based on attributes of said applicant;
second program instructions to determine a default probability of said applicant as a function of time based on said risk model; and
third program instructions to compute a sum of an expected profit from said loan over time based on said default probability; and
whereinsaid first, second and third program instructions are recorded on said medium. - View Dependent Claims (12, 13, 14)
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Specification