SYSTEM AND METHODS FOR RESIDENTIAL REAL ESTATE RISK TRANSFERENCE VIA ASSET-BACKED CONTRACT
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Accused Products
Abstract
Real estate risk may be transferred via a contract associated with a real estate property. Such a contract may be an asset-backed index swap or an investment contract in which an owner entity of the real estate property grants to an investor entity an economic right to a portion of future appreciation of the real estate property in exchange for consideration. The contract may expire responsive to a transfer of title of the real estate property. Exemplary implementations may provide a way to slice off the growth component of the property to an investor who wants it yet leaves the utility value and existing equity squarely in the hands of the homeowner. This division of growth and utility components may allow the homeowner to sell just the growth component of the property—and do so at a lower price in exchange for the convenience and liquidity tendered.
9 Citations
50 Claims
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1-30. -30. (canceled)
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31. A system configured for real estate risk transference via a contract associated with a first real estate property, the contract being an asset-backed index swap or an investment contract in which an owner entity of the first real estate property grants to an investor entity an economic right to a portion of future appreciation of the first real estate property in exchange for consideration, the contract expiring responsive to a transfer of title of the first real estate property, the system comprising:
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a plurality of processors, comprising; a first processor configured to execute computer-readable instructions to determine future cash settlement values of expiry per period for a plurality of periods based on information received by the first processor, the received information including one or more of a term of the contract, an appreciation projection associated with the first real estate property, or a conditional prepayment rate vector; a second processor configured to execute computer-readable instructions to determine a probability of expiry per period for the plurality of periods, a given probability of expiry for a corresponding period being based on a probability of a transfer of title of the first real estate property during the corresponding period, transfer of title being effected by either a sale by the owner entity of the first real estate property or death of the owner entity; and a third processor configured to execute computer-readable instructions to determine a present value of the contract using a probabilistic model based on the future cash settlement values for periodic expires received from the first processor, and the probabilities of expiry for corresponding periods received from the second processor, wherein the present value of the contract is outputted by the third processor to one or more client computing platforms, enabling an investor entity to access the present value of the contract via a client computing platform for use by the investor entity as a basis for the consideration to obtain the economic right to the portion of future appreciation of the first real estate property; and wherein the plurality of processors is configured to provide parallel and coordinated processing. - View Dependent Claims (32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50)
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Specification