Method and apparatus for rating asset-backed securities
First Claim
Patent Images
1. A method of managing loans to borrowers, comprising:
- (a) modeling consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
(b) estimating a spend capacity of each borrower of a loan based on tradeline data of the borrower, balance transfers of the borrower, and the model of consumer spending patterns; and
(c) for each borrower, using the spend capacity as a factor in determining loan amounts, wherein the risk of default is reduced.
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Abstract
Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumer'"'"'s spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. The likelihood of default determined by the SOW model, when applied to a loan portfolio, can reduce the amount of credit enhancement required for an asset-backed securities rating.
155 Citations
31 Claims
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1. A method of managing loans to borrowers, comprising:
- (a) modeling consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
(b) estimating a spend capacity of each borrower of a loan based on tradeline data of the borrower, balance transfers of the borrower, and the model of consumer spending patterns; and
(c) for each borrower, using the spend capacity as a factor in determining loan amounts, wherein the risk of default is reduced. - View Dependent Claims (5, 6, 7, 10)
- (a) modeling consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
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12. An apparatus for managing loans to borrowers, comprising:
- a processor; and
a memory in communication with the processor, wherein the memory stores a plurality of processing instructions for directing the processor to;
model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer spend panel data;
estimate a spend capacity of each borrower of a loan based on tradeline data of the borrower, balance transfers of the borrower, and the model of consumer spending patterns;
for each borrower, and use the spend capacity as a factor in determining loan amounts, wherein the risk of default is reduced. - View Dependent Claims (15, 16, 17, 18, 19, 23)
- a processor; and
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27. A computer program product comprising a computer usable medium having control logic stored therein for causing a computer to manage loans to borrowers, the control logic comprising:
- first computer readable program code means for causing the computer to model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
second computer readable program code means for causing the computer to estimate a spend capacity of each borrower of a loan based on tradeline data of the borrower, balance transfers of the borrower, and the model of consumer spending patterns; and
third computer readable program code means for causing the computer to use the spend capacity as a factor in determining loans for which the risk of default is reduced. - View Dependent Claims (28, 29)
- first computer readable program code means for causing the computer to model consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data;
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Specification