Financial Systems and Methods for Increasing Capital Availability by Decreasing Lending Risk
First Claim
1. A method for reducing risk across a portfolio of loans issued by a lender to a plurality of borrowers, the method comprising:
- performing a risk assessment of the lender that is independent of individual borrower default risk and that is further independent of individual loan default risk;
providing an insurance policy uniformly guaranteeing the portfolio of loans by guaranteeing at least some portion of each loan in the portfolio of loans based on the risk assessment of the lender, wherein said insurance policy applies to each loan in the portfolio of loans independent of different risks associated with each borrower of the plurality of borrowers and different risks associated with each loan in the portfolio of loans;
deriving a premium computation to apply across the portfolio of loans based on said risk assessment of the lender, wherein the premium computation provides a uniform premium amount that is chargeable for each borrowed dollar of a loan;
charging a premium to each loan in the portfolio of loans based on the premium computation and an amount of the loan, wherein the premium charged to each loan is determined independent of risk individually associated with a borrower of the loan and risk individually associated with the loan;
monitoring performance of a particular borrower in relation to a particular loan from the portfolio of loans issued to the particular borrower, wherein said monitoring comprises periodically contacting the particular borrower at different stages throughout pendency of the particular loan and obtaining information relating to creditworthiness of the particular borrower from the particular borrower at each of the different stages; and
offsetting an amount from the premium charged to the particular borrower for guaranteeing some portion of the particular loan by reselling the information relating to creditworthiness of the particular borrower to any of a lender and credit reporting agency.
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Accused Products
Abstract
Some embodiments provide a guarantor system for backstopping all or a substantial portion of a lender'"'"'s portfolio of loans with an insurance guarantee. The guarantor system builds the insurance guarantee into the covered portion of the lender'"'"'s portfolio in an integrated manner, whereby the overhead cost for insuring the loans of the portfolio is distributed across the portfolio instead of being distributed individually to each borrower based on the individual borrower'"'"'s risk profile. Some embodiments also provide various monitoring services to reduce lender risk. These include contacting the borrower to remind the borrower of upcoming payments that are due, conducting a quasi-audit of the borrowers to inform the lenders of a potential risk of default, and establishing a credit profile for the borrower using the information collected as part of the quasi-audit.
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Citations
24 Claims
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1. A method for reducing risk across a portfolio of loans issued by a lender to a plurality of borrowers, the method comprising:
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performing a risk assessment of the lender that is independent of individual borrower default risk and that is further independent of individual loan default risk; providing an insurance policy uniformly guaranteeing the portfolio of loans by guaranteeing at least some portion of each loan in the portfolio of loans based on the risk assessment of the lender, wherein said insurance policy applies to each loan in the portfolio of loans independent of different risks associated with each borrower of the plurality of borrowers and different risks associated with each loan in the portfolio of loans; deriving a premium computation to apply across the portfolio of loans based on said risk assessment of the lender, wherein the premium computation provides a uniform premium amount that is chargeable for each borrowed dollar of a loan; charging a premium to each loan in the portfolio of loans based on the premium computation and an amount of the loan, wherein the premium charged to each loan is determined independent of risk individually associated with a borrower of the loan and risk individually associated with the loan; monitoring performance of a particular borrower in relation to a particular loan from the portfolio of loans issued to the particular borrower, wherein said monitoring comprises periodically contacting the particular borrower at different stages throughout pendency of the particular loan and obtaining information relating to creditworthiness of the particular borrower from the particular borrower at each of the different stages; and offsetting an amount from the premium charged to the particular borrower for guaranteeing some portion of the particular loan by reselling the information relating to creditworthiness of the particular borrower to any of a lender and credit reporting agency. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 22, 23, 24)
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9. A guarantor system for reducing lender risk, the system comprising:
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non-transitory computer-readable storage medium storing computer-executable instructions; and a computer processor in communication with the non-transitory computer-readable storage medium, the computer-executable instructions from the non-transitory computer-readable storage medium programming the computer processor in; performing a risk assessment of a lender based on total risk exposure to the lender from a plurality of loans issued by the lender; determining, based on the risk assessment of the lender, a policy for guaranteeing at least some portion of each loan of the plurality of loans and a uniform premium amount that is chargeable for each borrowed dollar of a loan guaranteed by said policy; providing a guarantee to a new loan issued by the lender to a particular borrower under said policy upon approval of a first loan application process conducted between the lender and the particular borrower, without the borrower conducting a second guarantee application process to separately apply for the guarantee with a guarantor; computing an insurance premium for the new loan based on an amount of the new loan and the uniform premium amount that is chargeable for each borrowed dollar, and wherein computing the insurance premium is independent of the particular borrower'"'"'s default risk; assessing the insurance premium in return for guaranteeing the new loan; and auditing the particular borrower during pendency of the new loan, wherein said auditing comprises contacting trade references engaged with the particular borrower during pendency of the new loan and quantifying risk of the particular borrower defaulting on the new loan based on information collected from the trade references. - View Dependent Claims (10, 11, 12, 13, 14)
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15-21. -21. (canceled)
Specification