Networked loan market and lending management system

• US 7,716,125 B2
• Filed: 08/09/2006
• Issued: 05/11/2010
• Est. Priority Date: 08/10/2005
• Status: Expired due to Fees

• Current Assignee: Axcessnet Innovations
• Original Assignee: Axcessnet Innovations
• Inventors: Goren, Nava, Cheifetz, Yoni, Shavit, Eyal
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): Ebersman; Bruce I
• Application Number:
  US11/501,057
• Publication Number:
  US 20070061248A1
• Time in Patent Office: 1,371 Days
• Field of Search: 705/38
• US Class Current: 705/38
• 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
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system for matching lending orders and borrowing orders includes a borrowing order receiver, a lending order receiver, and a matcher. The borrowing order receiver is configured to receive borrowing orders from at least one borrower, each borrowing order including borrower-requested loan terms. The lending order receiver is configured to receive lending orders from at least one lender, each lending order comprising lender-requested loan terms. The matcher is configured to automatically identify a plurality of borrowing orders each having borrower-requested loan terms that satisfy the lender-requested loan terms of a respective current lending order, and select from amongst the identified plurality of borrowing orders a set of borrowing orders to be provided as a match of the respective current lending order, wherein the borrowing orders of the sets are selected so as to optimize said respective provided matches with respect to criteria of respective operator-definable utility functions.

Claims

1. Apparatus for generating and processing lending and borrowing orders in a networked loan market and lending management system, the apparatus comprising:

a computer;

a computer readable medium containing software;

a borrowing order receiver, configured to receive, over a communication network, borrowing orders from at least one computing device operable by a borrower, each borrowing order comprising borrower-requested loan terms;

a lending order receiver, configured to receive, over a communication network, lending orders from at least one computing device operable by a lender, each lending order comprising lender-requested loan terms; and

a matcher, associated with said borrowing order receiver and said lending order receiver, and configured to automatically match borrowing orders and lending orders using a multi cyclic process that is optimized according to criteria of an operator-definable utility function, the matcher being further configured to provide said matches using a multi dimensional matrix of cells being populated according to said orders,

wherein each cell of the matrix includes a first value indicative of whether the borrower-requested loan terms of a particular borrowing order satisfy the lender-requested loan terms of a particular lending order and a second value representative of an amount of the particular lending order to be allocated to the particular borrowing order during a current cycle of a multi cyclic optimization process, and

wherein during each cycle of the optimization process, the matcher is configured to;

identify for each borrowing order pending during a current cycle, a set of composite loans that satisfies the borrower-requested loan terms of each respective borrowing order, at least some of the composite loans of the set being comprised of a plurality of atomic loans that are defined in part by one or more lending orders;

generate from amongst the identified sets of composite loans, a set of feasible composite loan combinations, each feasible composite loan combination being comprised of a plurality of composite loans and satisfying the borrower-requested loan terms of all borrowing orders pending during the current cycle; and

select from amongst the set of feasible composite loan combinations, a subset of composite loans to be provided as matches to respective borrowing orders that are pending during the current cycle.

2. The apparatus of claim 1, wherein said receivers are implemented as a part of a web site.

3. The apparatus of claim 1, wherein each criterion of said criteria is assigned a respective weight in said utility function.

4. The apparatus of claim 1, wherein one of said criterions is a Customer Satisfaction Index (CSI).

5. The apparatus of claim 1, wherein said matcher is further configured to populate at least one of said dimensions of said matrix with at least one value representing a respective loan term in a respective order, said value belonging to a discrete value range.

6. The apparatus of claim 1, wherein said matcher is further configured to divide said matrix into a plurality of sub matrixes, wherein each of said sub-matrixes is characteristic of a certain loan market.

7. The apparatus of claim 1, wherein said matcher is further configured to provide said matches using a greedy algorithm aiming at equally distributing a borrowing order between a plurality of lending orders, thereby to achieving a uniform distribution of risk between said lenders.

8. The apparatus of claim 1, wherein said matcher is further configured to provide said match utilizing a correlation coefficient indicating a distribution between borrowing orders matched with said current lending order.

9. The apparatus of claim 1, wherein said lending order receiver is configured to communicate with said at least one lender via a communication network, for receiving said lending order.

10. The apparatus of claim 1, wherein said borrowing order receiver is configured to communicate with said at least one borrower via a communication network, for receiving said borrowing order.

11. The apparatus of claim 1, further comprising a subsidizer order receiver, associated with said matcher and configured to receive at least one subsidizer order from at least one subsidizer, said subsidizer order comprising subsidizer-requested loan terms, wherein said matcher is further configured to provide a match to said current lending order from amongst said borrowing orders and said subsidizer orders, such that said matched orders are mutually satisfied with respect to said loan terms and subsidy terms.

12. The apparatus of claim 1, further comprising a secondary sale manager, configured to receive a sale order from a first lender offering to sell his position as a lender in an existing loan, to receive a buying order from a second lender willing to buy a position of a lender in an existing loan, and to manage the sale of said position of said first lender to said second lender, according to terms defined in said orders.

13. The apparatus of claim 1, further comprising a secondary sale manager, configured to receive a sale order from a first lender offering to sell his position as a lender in an existing portfolio loan, to receive buying orders from other lenders willing to buy part or all of a position of a lender in an existing loan, and to manage the sale of said position of said first lender to said other lenders, according to terms defined in said orders.

14. The apparatus of claim 1, further comprising a secondary sale manager, configured to receive a sale order from a first lender offering to sell his position as a lender in an existing loan, to derive a buying orders from a lending orders received from other lenders willing to buy part or all of a position of a lender in an existing loan, and to manage the sale and transfer of said position of said first lender to said other lenders, according to terms defined in said orders, through the matching process.

15. The apparatus of claim 1, further comprising a loan manager, associated with said matcher and further configured to manage at least one portfolio loan according to said matches, said portfolio loan including at least one atomic loan relating to one respective lending order and one respective borrowing order.

16. The apparatus of claim 15, wherein said loan manager is further configured to calculate a correlation coefficient indicating correlation among borrowing orders in said portfolio loan.

17. The apparatus of claim 1, further comprising a loan manager, associated with said matcher and further configured to manage at least one composite loan according to said matches, said composite loan including at least one atomic loan relating to one respective lending order and one respective borrowing order.

18. The apparatus of claim 17, wherein said lending orders differ with respect to lender-requested loan terms.

19. The apparatus of claim 17, wherein said borrowing orders differ with respect to borrower-requested loan terms.

20. The apparatus of claim 1, further comprising a loan manager, associated with said matcher and configured to manage the execution of loans, based on said provided match, using escrow agents.

21. The apparatus of claim 1, comprising a loan manager, associated with said matcher and configured to manage the execution of said loans, based on said provided match, using escrow agents providing money transfer services to at least one of a group comprising said lender and borrower.

22. The apparatus of claim 1, further comprising an external loan market interface manger, configured to manage an interface, for exchanging data between the apparatus and an external-apparatus managing a loan market external to a loan market managed by the apparatus, said data including at least one of a group comprising:

loan data, sale order data, borrowing order data, and lending order data, thereby allowing initiating processing and trading loans involving at least two loan markets.

23. The apparatus of claim 1, further comprising a loan profile receiver, configured to receive a loan profile, said loan profile comprising default loan terms, wherein at least one of said receivers is further configured to use said default loan terms for an order received from said one of said borrowers and lenders.

24. The apparatus of claim 1, wherein said lender-requested loan terms comprise lender-requested risk terms and said matcher is further configured to use pre-obtained borrower-ratings for automatically providing said match, each of said borrower-ratings pertaining to a respective borrower.

25. The apparatus of claim 1, wherein said matcher is further configured to automatically provide a match to a plurality of said lending orders amongst a plurality of said borrowing orders.

45. The apparatus of claim 1, further comprising a workflow engine, configurable for managing a workflow process for initiating, executing, and collecting a loan resultant upon said provided match.

47. The apparatus of claim 1, wherein the borrowing orders of the sets are selected so as to identify an optimal combination of provided matches across the lending orders of a given cycle of a multi cyclic optimization process.

26. Method for generating and processing lending and borrowing orders in a networked loan market and management system, the method comprising:

receiving borrowing orders over a communication network from at least one computing device operable by a borrower, each borrowing order comprising borrower-requested loan terms;

receiving lending orders over the communication network from at least one computing device operable by a lender, each lending order comprising lender-requested loan terms; and

automatically matching by a computer borrowing orders and lending orders using a multi cyclic process that is optimized according to criteria of an operator-definable utility function, and a multi dimensional matrix of cells populated according to said orders,

wherein each cell of the matrix includes a first value indicative of whether the borrower-requested loan terms of a particular borrowing order satisfy the lender-requested loan terms of a particular lending order and a second value representative of an amount of the particular lending order to be allocated to the particular borrowing order during a current cycle of a multi cyclic optimization process, and

wherein during each cycle of the optimization process, the matching includes;

identifying for each borrowing order pending during a current cycle, a set of composite loans that satisfies the borrower-requested loan terms of each respective borrowing order, each composite loan of the set being comprised of a set of atomic loans that are defined in part by one or more lending orders;

generating from amongst the identified sets of composite loans, a set of feasible composite loan combinations, each feasible composite loan combination being comprised of a plurality of composite loans and satisfying the borrower-requested loan terms of all borrowing orders pending during the current cycle; and

selecting from amongst the set of feasible composite loan combinations, a subset of composite loans to be provided as matches to respective borrowing orders that are pending during the current cycle.

27. The method of claim 26, further comprising an initial step of allowing an operator to define a utility function usable for said providing said match.

28. The method of claim 26, further comprising receiving at least one subsidizer order from at least one subsidizer, said subsidizer order comprising subsidizer-defined subsidy terms, wherein said providing a match includes providing a match to said current lending order from amongst said borrowing orders and said subsidizer orders, such that said matched orders are mutually satisfied with respect to said loan terms and subsidy terms.

29. The method of claim 26, further comprising receiving a sale order from a first lender offering to sell his position as a lender in an existing loan, receiving a buying order from a second lender willing to buy a position of a lender in an existing loan, and managing the sale of said position of said first lender to said second lender, according to terms defined in said orders.

30. The method of claim 26, further comprising receiving a sale order from a first lender offering to sell his position as a lender in an existing loan, deriving at least one buying order from a lending order received from a second lender willing to buy a position of a lender in an existing loan, and managing the sale of said position of said first lender to said second lender, according to terms defined in said orders.

31. The method of claim 26, further comprising exchanging data with an external loan market, said data including at least one of a group comprising:

loan data, sale order data, borrower data, and lender data, thereby allowing loan trading involving at least two loan markets.

32. The method of claim 26, further comprising managing the execution of loans, based on said provided match, using escrow agents.

33. The method of claim 26, further comprising managing the execution of loans, based on said provided match, using escrow agents providing money transfer services between said lender and borrower.

34. The method of claim 26, further comprising receiving a loan profile from an operator, said loan profile comprising default loan terms, wherein said default loan terms are used for an order received from one of said borrowers and lenders.

35. The method of claim 26, further comprising using pre-obtained borrower-ratings for automatically providing said match, wherein each of said borrower-ratings pertains to a respective borrower and said lender-requested loan terms comprise lender-requested risk terms.

36. The method of claim 26, further comprising automatically providing a match to a plurality of said lending orders amongst a plurality of said borrowing orders.

37. The method of claim 26, further comprising presenting at least some of said matched orders to a lender as a portfolio loan.

38. The method of claim 26, further comprising presenting at least some of said matched orders to a borrower as a composite loan.

39. The method of claim 26, further comprising managing collaterals with respect of said matched orders.

40. The method of claim 26, further comprising managing signing process and signatures for said matched orders.

41. The method of claim 40, wherein said signatures are biometric.

42. The method of claim 40, wherein said signatures are electronic.

43. The method of claim 40, wherein said signatures are natural.

44. The method of claim 26, further comprising carrying out a debt collection process.

46. The method of claim 26, further comprising managing a workflow process for initiating, executing, and collecting a loan resultant upon said providing of a match.

48. The method of claim 26, wherein the borrowing orders of the sets are selected so as to identify an optimal combination of provided matches across the lending orders of a given cycle of a multi cyclic optimization process.