MORTGAGE LOAN HAVING EXERCISABLE OPTION

• US 20110022507A1
• Filed: 08/31/2010
• Published: 01/27/2011
• Est. Priority Date: 12/05/2008
• Status: Abandoned Application

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Johnson, Shane A., Curry, Lisa D., Kelly, Michael J., Howard, Pamela Marguerite
• Application Number:
  US12/872,922
• Publication Number:
  US 20110022507A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Embodiments of the present invention relate to methods and apparatuses for providing, processing, and/or servicing a mortgage loan having one or more exercisable options. For example, in some embodiments, a method is provided that includes storing, in a non-transitory computer-readable medium, one or more terms of an exercisable option, where the option is incorporated into a mortgage loan, where the mortgage loan includes a fixed interest rate, and where the option includes an interest rate modification feature, such that exercising the option results in the value of the fixed interest rate being modified from a first value to a second value.

Claims

1. A method comprising:

storing, in a non-transitory computer-readable medium, one or more terms of an exercisable option, wherein the option is incorporated into a mortgage loan, wherein the mortgage loan comprises a fixed interest rate, and wherein the option comprises an interest rate modification feature, such that exercising the option results in the value of the fixed interest rate being modified from a first value to a second value.

2. The method of claim 1, further comprising:

determining, prior to the option being incorporated into the mortgage loan, that the mortgage loan or a borrower associated with the mortgage loan is eligible to receive the option.

3. The method of claim 2, wherein the determining is based at least partially on a non-mortgage relationship between the borrower and a lender associated with the mortgage loan.

4. The method of claim 1, further comprising:

incorporating the option into the mortgage loan.

5. The method of claim 1, further comprising:

providing the mortgage loan to the borrower.

6. The method of claim 1, further comprising:

modifying, upon exercise of the option, the value of the fixed interest rate from the first value to the second value.

7. The method of claim 1, wherein the second value is lower than the first value.

8. The method of claim 1, wherein the second value is based at least partially on the value of a reference rate.

9. The method of claim 1, wherein the option is incorporated into the mortgage loan at or prior to the closing of the mortgage loan.

10. The method of claim 1, wherein the option is incorporated into the mortgage loan after the closing of the mortgage loan.

11. The method of claim 1, wherein the second value is based at least partially on a fee paid by a borrower associated with the mortgage loan.

12. The method of claim 1, wherein the second value is based at least partially on a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan.

13. The method of claim 1, wherein one or more terms of the option specify that the option is exercisable by a borrower associated with the mortgage loan.

14. The method of claim 1, wherein the one or more terms of the option specify that the option is exercisable upon the value of a reference rate falling to or below a predetermined value.

15. The method of claim 14, wherein the one or more terms of the option specify that the option is automatically exercised once the value of the reference rate falls to or below the predetermined value.

16. The method of claim 1, wherein the one or more terms of option specify that the option is exercisable only once.

17. The method of claim 1, wherein the one or more terms of the option specify that the option is exercisable a predetermined number of times, wherein the predetermined number of times is determined prior to the option being incorporated into the mortgage loan.

18. An apparatus comprising:

a non-transitory computer-readable medium comprising one or more terms of an exercisable option, wherein the option is incorporated into a mortgage loan, wherein the mortgage loan comprises a fixed interest rate, and wherein the option comprises an interest rate modification feature, such that exercising the option results in the value of the fixed interest rate being modified from a first value to a second value.

19. The apparatus of claim 18, further comprising:

a processor operatively connected to the non-transitory computer-readable medium and configured to determine, prior to the option being incorporated into the mortgage loan, that the mortgage loan or a borrower associated with the mortgage loan is eligible to receive the option.

20. The apparatus of claim 19, wherein the processor is configured to determine that the mortgage loan or the borrower is eligible based at least partially on a non-mortgage relationship between the borrower and a lender associated with the mortgage loan.

21. The apparatus of claim 18, further comprising:

a processor operatively connected to the non-transitory computer-readable medium and configured to incorporate the option into the mortgage loan.

22. The apparatus of claim 18, further comprising:

a processor operatively connected to the non-transitory computer-readable medium and configured to modify, upon exercise of the option, the value of the fixed interest rate from the first value to the second value.

23. The apparatus of claim 18, further comprising:

a processor operatively connected to the non-transitory computer-readable medium and configured to automatically exercise the option once the value of a reference rate falls to or below a predetermined value.

24. The apparatus of claim 18, wherein the second value is lower than the first value.

25. The apparatus of claim 18, wherein the second value is based at least partially on a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan.

26. A computer program product comprising a non-transitory computer-readable medium, wherein the non-transitory computer-readable medium comprises computer-executable program code portions stored therein, and wherein the computer-executable program code portions comprise:

a first program code portion operable to receive a request to incorporate an exercisable option into a mortgage loan, wherein the mortgage loan comprises a fixed interest rate, and wherein the option comprises an interest rate modification feature, such that exercising the option results in the value of the fixed interest rate being modified from a first value to a second value;

a second program code portion operable to determine that a borrower associated with the mortgage loan is eligible to receive the option; and

a third program code portion operable to incorporate the option into the mortgage loan based at least partially on the second program code portion determining that the borrower is eligible to receive the option.

27. The computer program product of claim 26, wherein the second program code portion is operable to determine that the borrower is eligible based at least partially on a non-mortgage relationship between the borrower and a lender associated with the mortgage loan.

28. The computer program product of claim 26, wherein the second program code portion is operable to determine that the borrower is eligible based at least partially on a fee paid by the borrower to a lender associated with the mortgage loan.

29. The computer program product of claim 26, further comprising:

a fourth program code portion operable to modify, upon exercise of the option, the value of the fixed interest rate from the first value to the second value.

30. The computer program product of claim 26, further comprising:

a fourth program code portion operable to automatically exercise the option once the value of a reference rate falls to or below a predetermined value.

31. A method comprising:

providing a mortgage loan, wherein the mortgage loan comprises a fixed interest rate and an exercisable option, and wherein the option comprises an interest rate modification feature, such that exercising the option results in the value of the fixed interest rate being modified from a first value to a second value.

32. A method comprising:

modifying, upon exercise of an option, a fixed interest rate of a mortgage loan from a first value to a second value, wherein the second value is lower than the first value, and wherein the option is incorporated into the mortgage loan prior to the exercise.