Reverse mortgage processing system

• US 6,012,047 A
• Filed: 11/21/1995
• Issued: 01/04/2000
• Est. Priority Date: 01/25/1993
• Status: Expired due to Fees

• Current Assignee: Financial Freedom Senior Funding Corp (Ullico, Inc.)
• Original Assignee: Transamerica Corporation (Aegon Ltd.)
• Inventors: Mazonas, Peter M., Mattox, Robert F.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): KALINOWSKI, ALEXANDER G
• Application Number:
  US08/561,444
• Time in Patent Office: 1,505 Days
• Field of Search: 395/235, 395/236, 395/237, 395/238, 395/239, 705/35, 705/36, 705/37, 705/38, 705/39
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A data processing system for selectively determining an appropriate balance of credit parameters associated with the issuance of Reverse Equity Mortgage financing. The system manages the risk associated with the credit by structuring a concurrent single premium deferred annuity to provide future cash flows starting at a system determined date corresponding to actuarially determined requirements of the borrower. The data processing system accepts inputs of the critical data required to perform the calculations and provides a detailed assessment of the proper level of credit and blend of annuity payments for the borrower, thereby solving the principal problem associated with RM products. Thereafter, the system provides the management for the plural current and past accounts associated with the client-based attributes for each lending opportunity.

Claims

1. In combination in a system for commercial product and/or service support including processing one or more user defined illiquid assets having a measurable valuation and developing a combination of financial instruments corresponding to combined secured credit and deferred annuity, comprising:

means for collecting and inputting into a data processing system a set of application parameters associated with a request for access to reverse equity financing said application parameters include biographical data on an applicant and asset valuation data on one or more qualified assets forming a basis for securing of credit;

means for selectively accessing actuarial data taken from a database in communication with said system and/or calculated by a data processing means of said system, based on said application parameters;

means for inputting one or more system or user selected combinations of secured debt parameters and annuity parameters corresponding to a select level of incremental cash flow objectives;

means for interactive evaluation of said incremental cash flow and selection of an annuity and loan program structure corresponding to a selected cash flow;

data processing means in said system responsive to said input means and accessing means for calculating a credit allocation and insurance premium consistent with system defined credit lending parameters and selected cash flow, wherein said data processing means further provides a framework of periodic payments associated with a release of credit in the form of a reverse equity mortgage loan and a premium level for a deferred annuity wherein a deferral period for said deferred annuity is determined in part from biographical information, including information relating to life expectancy.

2. The system of claim 1 wherein said data processing means further comprises means for determining an initial deferral period for said deferred annuity based on said biographical data and stored life expectancy data.

3. The system of claim 2 wherein said forecasting data includes an appreciation rate for selected assets.

4. The system of claim 3 wherein said system iteratively calculates separate payment schedules pursuant to user selected preferences.

5. The system of claim 1 wherein applicant data is collected through the entry of field values in a form.

6. The system of claim 5 wherein said form reposes on a display and data is entered in said fields via key stroke entry.

7. In combination in a data processing system for commercial product and/or service support by processing of individual accounts corresponding to applicants for select credit wherein said system processes account data for the selective assessment of financial instruments including a reverse equity mortgage and a deferred annuity to provide a stream of cash flow for an indeterminate period of time secured by predefined assets, comprising:

first computer input means for selective entry of system and applicant account parameters corresponding to a credit application which is to be applied to an assessment of a current and future value associated with said pre-defined assets;

data processing means connected to said first computer and responsive to said inputted parameters for determining account processing and record keeping parameters based on a designated combination of reverse equity mortgage commitment and deferred annuity structure corresponding to the select cash flow requirements of said account applicant, actuarial data on said applicant and the valuation of said asset; and

second computer means in communication with said first computer means for account processing and tracking actual events associated with said mortgage commitment and deferred annuity implementation including asset transactions and creating a report corresponding to account parameters.

8. The system of claim 7 further comprising a second data processing means for providing a line of credit associated with a segmented portion of said asset available to provide additional credit to the account applicant.

9. The system of claim 7 wherein said input means receives input parameters including an appraisal, an appreciation rate, loan start date, applicant actuarial assessment, and current interest rate.

10. The system of claim 7 wherein said data processing means provides a set of initial account attributes based on the life expectancy of the account applicant and permits reassessment of account attributes via interactive adjustment of select parameters including deferral period for said annuity.

11. A data processing system of the type for processing plural accounts having discrete and disparate attributes corresponding to an integrated reverse equity loan and annuity product, comprising:

account qualification means including interactive data collection to provide information for assessing prospect data and screening prospects to narrow a universe of applicants to a smaller segment of viable loan prospects;

loan structure means for receiving input including information on an applicant and an underlying asset and determining a suitable structure of distributed payment stream income, annuity deferral period based in part on biographical data of an applicant, line of credit and reserved equity for said applicant for a loan; and

loan servicing means for monitoring a plurality of accounts for reverse equity financing and providing for one or more transactions associated with said accounts, including scheduled payments and unscheduled tracking of events.

12. The system of claim 11 further comprising means for utilizing demographic data to establish an approximation of the underlying asset valuation.

13. The system of claim 11 wherein said loan structure means includes means for establishing a deferred single premium annuity tied to a termination date of said loan in accordance with loan recipient biographic data.

14. The system of claim 11 wherein said loan servicing means further provides for a line of credit and a periodic payment tied to an asset collateralizing said loan.

15. The system of claim 11 wherein said unscheduled events include death of the applicant and destruction of said underlying asset.

16. The system of claim 11 wherein said line of credit is financed by a reverse mortgage on said asset.

17. The system of claim 11 wherein said loan servicing means includes means for updating an account database with transactions.

18. The system of claim 11 wherein said prospect data is retained in a database for future referral.

19. The system of claim 11 wherein said screening process includes forecasting future appreciation of said asset.

20. The system of claim 11 further comprising means for collecting prospect data for account qualification.