HYBRID MORTGAGE-BACKED INVESTMENT VEHICLES AND A METHOD AND SYSTEM FOR HYBRID MORTGAGE-BACKED INVESTMENT VEHICLES
First Claim
1. A hybrid mortgage-backed investment vehicle comprising a pool of mortgages, wherein said pool of mortgages includes at least on traditional mortgage and at least one modifiable mortgage.
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Abstract
A hybrid mortgage-backed investment vehicle in which the pool of mortgages which back the investment vehicle is made up of selected traditional and modifiable mortgages. This invention allows for increased customization over traditional mortgage-backed securities which may be backed by pools of either traditional or modifiable mortgages, but not both. This flexibility may be used to better tailor mortgage-backed securities to meet investor goals, and as such may lead to more successful securities. Specifically, the use of modifiable mortgages in combination with traditional mortgages may lead to increased retention of mortgages in mortgage pool. This is achieved through the decreased prepayment of modifiable mortgages. Additionally, the current invention includes as method and system for practicing hybrid mortgage-backed investment vehicles.
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Citations
19 Claims
- 1. A hybrid mortgage-backed investment vehicle comprising a pool of mortgages, wherein said pool of mortgages includes at least on traditional mortgage and at least one modifiable mortgage.
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14. A method of creating mortgage-backed security comprising the steps of:
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determining the goals to be achieved by the mortgage backed security;
determining the ideal properties of the backing pool for the mortgage based security;
determining the number of at least one traditional and at least on modifiable mortgage to be used in the backing pool of said hybrid mortgage-backed security; and
creating said hybrid mortgage-backed security using said backing pool. - View Dependent Claims (15, 16, 17, 18)
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19. A computer system for establishing a pool of mortgages for a hybrid mortgage-backed investment vehicle comprising,
input means for inputting desired properties of said hybrid mortgage-backed security; -
logic means for determining the properties of said pool of mortgages, and the composition of said pool of mortgages; and
display means for displaying the ideal composition of said pool of mortgages.
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Specification