Computer-system for Shariah-compliant computer-aided method for securing a Shariah-compliant credit enhancement

• US 20040177029A1
• Filed: 10/07/2003
• Published: 09/09/2004
• Est. Priority Date: 10/07/2002
• Status: Abandoned Application

• Current Assignee: Guidance Financial Group LLC
• Original Assignee: Guidance Financial Group LLC
• Inventors: Kershner, Larry, Weiner, Harvey, Hammour, Mohamad Lutfi
• Application Number:
  US10/680,474
• Publication Number:
  US 20040177029A1
• Time in Patent Office: Days
• US Class Current: 705/38
• 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

Abstract

A computer system and computer-aided method for securing a Shariah-compliant credit enhancement, the method including the steps of: entering a property value and a property financing amount as input to a computer; computing, from the property value and a property financing amount, a quantity of mortgage insurance coverage required to satisfy a Shariah-compliant credit enhancement; and securing a mortgage insurer'"'"'s commitment to an intermediary to insure a home financing contract, wherein the intermediary is not a lender or borrower. System-provided documentation is also included.

Claims

1. A computer-aided method for securing a Shariah-compliant credit enhancement, the method including the steps of:

entering a property value and a property financing amount as input to a computer;

computing, from the property value and a property financing amount, a quantity of mortgage insurance coverage required to satisfy a Shariah-compliant credit enhancement; and

securing a mortgage insurer'"'"'s commitment to an intermediary to insure a home financing contract, wherein said intermediary is not a lender or borrower.

2. The method of claim 1, wherein the step of securing includes:

obtaining mortgage insurance coverage subject to a self-insurance requirement.

3. The method of claim 1, wherein the step of securing includes:

obtaining mortgage insurance for said coverage, wherein said insurance is not obtained from a non-affiliated insurance provider.

4. The method of claim 1, further including the step of:

issuing a signal from an originator computer to a mortgage insurance provider computer communicating an amount of mortgage insurance required for said property financing amount to be insured under a master mortgage insurance agreement between a intermediary and said insurance provider.

5. The method of claim 1, further including the step of:

issuing a communication from an insurance company computer to an originator computer by telecommunications system, said communication indicating a commitment to insure the quantity of mortgage insurance coverage under a self-insurance requirement.

6. The method of claim 5, further including the step of:

originating the home financing contract simultaneous with ordering mortgage insurance corresponding to said coverage.

7. The method of claim 6, further including the step of:

signaling from an originator computer to a mortgage insurance provider computer said amount of mortgage insurance coverage required on a contract to facilitate a sale under said purchase and sale agreement.

8. The method of claim 1, wherein said steps are carried out with an originator placing mortgage insurance with an insurance provider for said coverage absent control from a master agreement between the originator and an insurance provider.

9. The method of claim 1, wherein said steps are carried out with an originator placing mortgage insurance with an insurance provider for said coverage subject to control by an agency agreement the originator and the intermediary.

10. The method of claim 1, wherein at least one of said steps are carried out under control of a master mortgage insurance policy between a intermediary and an affiliated mortgage insurance company.

11. The method of claim 1, further including the steps of:

making an insurance policy for said coverage required to satisfy a Shariah-compliant credit enhancement by entering a standard insurance policy into memory of a computer;

modifying the standard insurance policy responsive to a communication from the intermediary, to make the insurance policy for said coverage required to satisfy a Shariah-compliant credit enhancement; and

issuing said policy for said coverage.

12. The method of claim 1, further including the steps of:

using a standard insurance policy for said coverage required to satisfy a Shariah-compliant credit enhancement supplemented by adding definition to said standard insurance policy; and

issuing said policy in combination with said definition for said coverage.

13. The method of claim 1, further including the step of:

providing life of contract insurance corresponding to said coverage and priced for a single payment insurance premium paid by a intermediary.

14. The method of claim 1, further including the step of:

paying premium payments for life of contract insurance, corresponding to said coverage, from proceeds received by the intermediary from a sale of the home financing contract.

15. The method of claim 1, further including the step of:

paying premium payments for life of contract insurance, corresponding to said coverage, from a commission received by the intermediary from the originator to ensure servicing of the home financing contract after delivery of the home financing contract by the intermediary to a secondary market participant.

16. The method of claim 1, further including the step of:

controlling computer communication of services provided by an originator as agent for the intermediary subject to an administration agreement between the originator and the intermediary.

17. The method of claim 1, further including the step of:

tracking, by computer, an obligation specified in an agreement between the intermediary and a secondary market participant under which an originator is the intermediary'"'"'s agent to facilitate a sale of said home financing contract to the secondary market participant.

18. The method of claim 1, further including the step of:

communicating a designation from the intermediary'"'"'s computer to an originator'"'"'s computer that the originator shall service an insurance policy corresponding to said coverage.

19. The method of claim 1, further including the step of:

linking an originator of a financing transaction corresponding to the coverage as an agent in a transaction with a subsequent buyer of the home financing contract in a secondary market participant'"'"'s computer communications with a mortgage insurance provider computer.

20. The method of claim 1, further including the step of an originator of the home financing contract acting as agent for the intermediary to carry out a sale of the home financing contract to a secondary market participant.

21. The method of claim 1, further including the step of:

sending from an insurance provider computer to an originator'"'"'s computer, by telecommunications systems, a communication reflecting that said originator is agent for the intermediary in the intermediary'"'"'s commitment to insure the home financing contract pursuant to an insurance certificate.

22. The method of claim 1, further including the step of:

generating price by which the intermediary sells the home financing contract to a secondary market participant, said price including an excess beyond an initial price for the contract effective when said home financing contract was purchased from an originator.

23. The method of claim 22, further including the step of:

applying, with the intermediary computer, at least a portion of the excess to purchase single premium insurance.

24. The method of claim 14, further including the step of:

generating price by which the intermediary sells the home financing contract to a secondary market participant, said price including an excess beyond an initial price for the contract effective when said home financing contract was purchased from an originator.

25. The method of claim 24, further including the step of:

applying, with the intermediary computer, at least a portion of the excess to purchase single premium insurance.

26. The method of claim 1, further including the step of:

tracking secondary market participation to maintain a self insurance arrangement between the intermediary and the provider.