SYSTEM FOR MANAGING THE TOTAL RISK EXPOSURE FOR A PORTFOLIO OF LOANS
First Claim
1. A computer system for managing the total risk exposure for a plurality of loans, each of said loans used to purchase one or more life insurance products, the system comprising:
- a gap enhancement module including a database of values associated with each of said one or more life insurance products, wherein said values in said database include a current gap value associated with each of said one or more products, said current gap value representing the difference between a premium paid and a current value of said product; and
a finance module in communication with said gap enhancement module, said finance module configured to;
(a) combine said plurality of loans into a portfolio;
(b) calculate an aggregate risk value for said portfolio, based on a current gap value of each of said one or more products in said portfolio; and
(c) provide said aggregate risk value to an initial credit provider for the purpose of obtaining and maintaining a credit facility for said portfolio of loans, said credit facility having terms favorably responsive to the presence of said one or more gap enhancement instruments.
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Abstract
A computer system for monitoring and enhancing the collateral security underlying a set of loans is provided, including a system for calculating the unsecured value of the set at any time and for initiating additional collateral enhancement instruments when the unsecured value exceeds a certain limit. The system may include a variety of modules in communication with a relational database for storing data about the loans and system elements. The computer system may also be configured to allocate, manage, and execute the waterfall or cascade of funds between and among the various participants in a financial plan. The invention also includes a structured finance plan and related methods for enhancing the collateral security of a loan obtained for a life insurance or annuity product, and a system and method for managing a portfolio of such loans in order to obtain favorable financing and to facilitate securitization.
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Citations
18 Claims
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1. A computer system for managing the total risk exposure for a plurality of loans, each of said loans used to purchase one or more life insurance products, the system comprising:
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a gap enhancement module including a database of values associated with each of said one or more life insurance products, wherein said values in said database include a current gap value associated with each of said one or more products, said current gap value representing the difference between a premium paid and a current value of said product; and a finance module in communication with said gap enhancement module, said finance module configured to; (a) combine said plurality of loans into a portfolio; (b) calculate an aggregate risk value for said portfolio, based on a current gap value of each of said one or more products in said portfolio; and (c) provide said aggregate risk value to an initial credit provider for the purpose of obtaining and maintaining a credit facility for said portfolio of loans, said credit facility having terms favorably responsive to the presence of said one or more gap enhancement instruments. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18)
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Specification