Method, system, and computer program product for structuring and allocating payments on a loan with secured repayments

• US 20060074794A1
• Filed: 09/29/2004
• Published: 04/06/2006
• Est. Priority Date: 09/29/2004
• Status: Abandoned Application

• Current Assignee: Freddie Mac
• Original Assignee: Freddie Mac
• Inventors: Nespola, Richard Peter Jr.
• Application Number:
  US10/951,600
• Publication Number:
  US 20060074794A1
• 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 method of making and securing a loan, including the steps of: taking a loan by a borrower; and lending money secured by real estate to the borrower. The loan terms include the borrower being responsible for the debt; the borrower has an option to request another entity make a predetermined payment on the borrower'"'"'s behalf; and the another entity takes an equity interest in relation to the amount paid by the another entity on behalf of the borrower.

Claims

1. A method of making and securing a loan, comprising the steps of:

guaranteeing by a guarantor a loan for real estate; and

administering said loan in accordance with a loan agreement having predetermined flexible payment terms that include

a borrower being responsible for a debt associated with said loan;

the guarantor paying at least a portion of an amount due on said loan behalf of the borrower; and

said guarantor taking an equity interest in said real estate in relation to said at least a portion of an amount due on said loan paid by the guarantor on behalf of the borrower.

2. The method of claim 1, wherein said at least a portion of an amount due comprises at least one of:

at least a portion of a principal payment;

at least a portion of an interest payment;

at least a portion of a tax payment; and

at least a portion of an insurance payment.

3. The method of claim 1, further comprising:

reselling said loan.

4. The method of claim 1, further comprising:

converting said loan from a first set of loan terms to said predetermined flexible payment terms of said loan agreement.

5. The method of claim 1, further comprising one of:

forwarding a decision to forgo said at least a portion of an amount due;

forwarding a request to forgo said at least a portion of an amount due; and

forgoing said at least a portion of an amount due without first forwarding a decision to forgo said at least a portion of an amount due and without first forwarding a request to forgo said at least a portion of an amount due.

6. The method of claim 5, wherein said at least a portion of an amount due is one of a portion fixed by the loan agreement and a portion selected by the borrower.

7. The method of claim 5, wherein said predetermined flexible payment terms include at least one of:

a life time cap on a number of deferments;

an annual cap on the number of deferments;

only allowing a deferment during a predetermined time period of the loan;

a life time cap on a dollar amount deferred; and

an annual cap on the dollar amount deferred.

8. The method of claim 5, wherein said one of forwarding a decision, forwarding a request, and forgoing said at least a portion of an amount due consists of:

forwarding said request, said method further comprising

evaluating said request at least to determine if said loan is compliant with a predetermined set of criteria related to current loan-to-value and payment history.

9. The method of claim 8, further comprising:

approving said request at an amount equal to or less than said at least a portion of an amount due requested by the borrower; and

informing the borrower of a revised payment due, said revised payment equal to an original obligation minus the amount approved in said step of approving.

10. The method of claim 5, further comprising:

notifying said guarantor that a payment is due from said guarantor on behalf of the borrower and in accordance with said predetermined flexible payment terms.

11. The method of claim 10, further comprising:

aggregating into a total payment a payment from the borrower and a payment from the guarantor; and

passing at least a portion of all collected interest from the total payment to a secondary market institution.

12. The method of claim 11, further comprising:

distributing the collected interest payments from the secondary market institution to secondary market investors.

13. The method of claim 12, wherein said step of distributing comprises:

bundling at least a portion of said loan with at least a portion of one or more additional loans.

14. The method of claim 13, further comprising:

capturing records of payments made by the guarantor on behalf of the borrower in a data warehouse.

15. The method of claim 13, further comprising:

calculating an equity share of the guarantor in said real estate corresponding to said payments made by the guarantor on behalf of the borrower.

16. The method of claim 15, further comprising:

assessing appreciation of said equity share when said borrower sells said real estate, at a time prior to when said borrower sells said real estate, when said borrower refinances said loan, or at a time prior to when said borrower refinances said loan.

17. The method of claim 16, further comprising one of:

the guarantor requesting an equity reimbursement from the borrower; and

the borrower voluntarily providing an equity reimbursement to said guarantor.

18. The method of claim 1, wherein said predetermined flexible payment terms include a penalty provision for default of one of said predetermined flexible payment terms.

19. The method of claim 18, wherein said predetermined flexible payment terms include a penalty provision for early liquidation of said equity share.

20. A system for making and securing a loan, comprising the steps of:

means for guaranteeing by a guarantor a loan for real estate; and

means for administering said loan in accordance with a loan agreement having predetermined flexible payment terms that include

a borrower being responsible for a debt associated with said loan;

the guarantor paying at least a portion of an amount due on said loan behalf of the borrower; and

said guarantor taking an equity interest in said real estate in relation to said at least a portion of an amount due on said loan paid by the guarantor on behalf of the borrower.

21. The system of claim 20, wherein said at least a portion of an amount due comprises at least one of:

at least a portion of a principal payment;

at least a portion of an interest payment;

at least a portion of a tax payment; and

at least a portion of an insurance payment.

22. The system of claim 20, further comprising:

means for converting said loan from a first set of loan terms to said predetermined flexible payment terms of said loan agreement.

23. The system of claim 20, further comprising:

means for notifying said guarantor that a payment is due from said guarantor on behalf of the borrower and in accordance with said predetermined flexible payment terms.

24. The system of claim 23, further comprising:

means for aggregating into a total payment a payment from the borrower and a payment from the guarantor; and

means for passing at least a portion of all collected interest from the total payment to a secondary market institution.

25. The system of claim 24, further comprising:

means for distributing the collected interest payments from the secondary market institution to secondary market investors.

26. The system of claim 25, wherein said means for distributing comprises:

means for bundling at least a portion of said loan with at least a portion of one or more additional loans.

27. The system of claim 24, further comprising:

means for capturing records of payments made by the guarantor on behalf of the borrower in a data warehouse.

28. The system of claim 24, further comprising:

means for calculating an equity share of the guarantor in said real estate corresponding to said payment made by the guarantor on behalf of the borrower.

29. The system of claim 28, further comprising:

means for assessing appreciation of said equity share when said borrower sells said real estate, at a time prior to when said borrower sells said real estate, when said borrower refinances said loan, or at a time prior to when said borrower refinances said loan.

30. A computer program product including instructions configured to enable a computer to perform a method for making and securing a loan, comprising instructions for:

guaranteeing by a guarantor a loan for real estate; and

administering said loan in accordance with a loan agreement having predetermined flexible payment terms that include

a borrower being responsible for a debt associated with said loan;

the guarantor paying at least a portion of an amount due on said loan behalf of the borrower; and

said guarantor taking an equity interest in said real estate in relation to said at least a portion of an amount due on said loan paid by the guarantor on behalf of the borrower.