METHODS AND SYSTEMS FOR PROACTIVE LOAN MODIFICATION
First Claim
1. A computer implemented method, executed by a computer system having a computer processor, for automatically modifying the terms of a plurality of mortgages within a portfolio of mortgages, such that monthly payments for the plurality of mortgages are reduced, the method comprising:
- calculating by the computer processor a current net present value for each of the mortgages in the portfolio of mortgages;
calculating by the computer processor a plurality of future net present values for each of the mortgages in the portfolio, each future net present value responsive to both a first period of time of the modification and a second period of time following expiration of the modification corresponding to one set of proposed modified loan terms comprising at least one of;
change of rate for a predetermined period of time, change of rate for the loan duration, forgoing at least one loan payment, reduction of the loan amount or change of type of loan;
determining by the computer processor the largest calculated future net present value for each of the mortgages in the portfolio; and
automatically generating by the computer processor the loan terms of each of the plurality of mortgages where the largest future net present value is greater than the current net present value, wherein the loan terms for each of the mortgages in the portfolio are modified to correspond to the proposed modified loan terms resulting in the largest net present value.
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Abstract
Embodiments of the invention include a computer implemented method for automatically modifying the terms of a plurality of mortgages within a portfolio of mortgages, such that, monthly payments for the plurality of mortgages are reduced. The method includes calculating a current net present value for each of the mortgages in the portfolio of mortgages. The method also includes calculating a plurality of future net present values for each of the mortgages in the portfolio, each future net present value corresponding to one set of modified loan terms. The method also includes selecting the largest calculated future net present value. The method also includes automatically modifying the loan terms of each of the plurality of mortgages where the largest future net present value is greater than the current net present value. Loan terms are modified to correspond to the modified loan terms resulting in the largest net present value.
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Citations
47 Claims
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1. A computer implemented method, executed by a computer system having a computer processor, for automatically modifying the terms of a plurality of mortgages within a portfolio of mortgages, such that monthly payments for the plurality of mortgages are reduced, the method comprising:
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calculating by the computer processor a current net present value for each of the mortgages in the portfolio of mortgages; calculating by the computer processor a plurality of future net present values for each of the mortgages in the portfolio, each future net present value responsive to both a first period of time of the modification and a second period of time following expiration of the modification corresponding to one set of proposed modified loan terms comprising at least one of;
change of rate for a predetermined period of time, change of rate for the loan duration, forgoing at least one loan payment, reduction of the loan amount or change of type of loan;determining by the computer processor the largest calculated future net present value for each of the mortgages in the portfolio; and automatically generating by the computer processor the loan terms of each of the plurality of mortgages where the largest future net present value is greater than the current net present value, wherein the loan terms for each of the mortgages in the portfolio are modified to correspond to the proposed modified loan terms resulting in the largest net present value. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 42, 43)
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17. A computer implemented system for automatically modifying the terms of a plurality of mortgages within a portfolio of mortgages, such that, monthly payments for the plurality of mortgages are reduced, the system comprising:
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a computer implemented server system, having at least one computer processor, for processing and calculating a current net present value for each of the mortgages in the portfolio of mortgages, wherein data on the mortgages is received from a database through a communication network; the computer processor calculating a plurality of future net present values for each of the mortgages in the portfolio, each future net present value corresponding to one set of proposed modified loan terms comprising at least one of;
change of rate for a predetermined period of time, change of rate for the loan duration, forgoing at least one loan payment, reduction of the loan amount or change of type of loan;the computer processor determining the largest calculated future net present value for each of the mortgages in the portfolio; the computer processor automatically generating the loan terms of each of the plurality of mortgages where the largest future net present value is greater than the current net present value, wherein the loan terms for each of the mortgages in the portfolio are modified to correspond to the proposed modified loan terms resulting in the largest net present value responsive to at least one of a first period of time of the modification or a second period of time following expiration of the modification; and the computer processor updating mortgage data in the database in accordance with the modified loan terms. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 44, 45)
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33. A computer implemented method, executed by a computer system having a computer processor, for automatically modifying the terms of a plurality of mortgages within a portfolio of mortgages, such that monthly payments for the plurality of mortgages are reduced, the method comprising:
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determining by the computer processor a customer'"'"'s eligibility for a first loan modification using a first set of rules, wherein eligibility is based on at least the customer'"'"'s disposable income, expenses or debt; determining by the computer processor the customer'"'"'s eligibility for a second loan modification using a second set of rules, wherein eligibility is based on the net present value of the loan, and wherein determining net present value comprises calculating a plurality of future net present values for the customer'"'"'s mortgage, each future net present value corresponding to one set of proposed modified loan terms comprising at least one of;
change of rate for a predetermined period of time, change of rate for the loan duration, forgoing at least one loan payment, reduction of the loan amount or change of type of loan;determining by the computer processor whether at least one of the first and second loan modifications provide the payment relief to the customer; and automatically generating by the computer processor the loan terms of the customer'"'"'s mortgage in accordance with the determined one of the first and second loan modifications responsive to predetermined criteria. - View Dependent Claims (34, 35, 36, 37, 38, 39, 40, 41, 46, 47)
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Specification