System for managing the total risk exposure for a portfolio of loans
First Claim
1. A computer system for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, the system comprising:
- one or more data tables stored in a computer-readable storage medium and including data associated with one or more products comprising one or more financial instruments that employ or accomplish a form of risk transfer and have a portion or component having a potential to grow in value over time, wherein said data in said one or more data tables include a current gap value associated with each of said one or more products, said current gap value representing the difference between a premium paid and a value of each of said one or more products; and
a processor configured to execute;
a gap enhancement module configured to receive commitments associated with one or more gap enhancement instruments executed by one or more parties other than the one or more borrowers and addressing said current gap value; and
a finance module configured to;
(a) combine into a portfolio said plurality of loans, each secured by one or more of said products;
(b) calculate an aggregate risk value for said portfolio, said aggregate risk value based on said current gap value of each of said one or more products in said portfolio; and
(c) provide to a credit provider;
(i) said aggregate risk value; and
(ii) enhancement data representative of said one or more executed gap enhancement instruments and supportive of said credit facility for said portfolio of loans, having terms favorably responsive to the presence of said enhancement data.
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0 Petitions
Accused Products
Abstract
A computer system for monitoring and enhancing the collateral security underlying a set of loans is provided, including a system for calculating the unsecured value of the set at any time and for initiating additional collateral enhancement instruments when the unsecured value exceeds a certain limit. The system may include a variety of modules in communication with a relational database for storing data about the loans and system elements. The computer system may also be configured to allocate, manage, and execute the waterfall or cascade of funds between and among the various participants in a financial plan. The invention also includes a structured finance plan and related methods for enhancing the collateral security of a loan obtained for a life insurance or annuity product, and a system and method for managing a portfolio of such loans in order to obtain favorable financing and to facilitate securitization.
107 Citations
33 Claims
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1. A computer system for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, the system comprising:
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one or more data tables stored in a computer-readable storage medium and including data associated with one or more products comprising one or more financial instruments that employ or accomplish a form of risk transfer and have a portion or component having a potential to grow in value over time, wherein said data in said one or more data tables include a current gap value associated with each of said one or more products, said current gap value representing the difference between a premium paid and a value of each of said one or more products; and a processor configured to execute; a gap enhancement module configured to receive commitments associated with one or more gap enhancement instruments executed by one or more parties other than the one or more borrowers and addressing said current gap value; and a finance module configured to; (a) combine into a portfolio said plurality of loans, each secured by one or more of said products; (b) calculate an aggregate risk value for said portfolio, said aggregate risk value based on said current gap value of each of said one or more products in said portfolio; and (c) provide to a credit provider; (i) said aggregate risk value; and (ii) enhancement data representative of said one or more executed gap enhancement instruments and supportive of said credit facility for said portfolio of loans, having terms favorably responsive to the presence of said enhancement data. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23)
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24. A computer program product, comprising a computer-readable storage medium having an executable program code stored thereon, wherein said program code instructs a processor to perform steps for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, said steps comprising:
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A) accessing one or more data tables and distinct software modules, wherein said data tables are located on a data storage system and include data associated with one or more products comprising one or more financial instruments that employ or accomplish a form of risk transfer and have a portion or component having a potential to grow in value over time, and wherein said distinct software modules comprise a finance module, a gap enhancement module, and a computer program module; B) combining into a portfolio said plurality of loans secured by one or more of said products, wherein said combining is performed by said finance module in response to being called by said computer program module; C) calculating an aggregate risk value for said portfolio, said aggregate risk value based on a current gap value stored in said one or more data tables, said current gap value representing the difference between a premium paid and a value of each of said one or more products, wherein said calculating is performed by said finance module in response to being called by said computer program module; D) receiving commitments associated with one or more gap enhancement instruments executed by one or more parties other than the one or more borrowers and addressing said current gap value, wherein said receiving is performed by said gap enhancement module in response to being called by said computer program module; and E) providing to a credit provider; (i) said aggregate risk value; and (ii) enhancement data representative of said one or more executed gap enhancement instruments and supportive of said credit facility for said portfolio of loans, having terms favorably responsive to the presence of said enhancement data; and wherein said providing is performed by said finance and gap enhancement modules in response to being called by said computer program module.
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25. A computer system for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, said system comprising:
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A) means for combining into a portfolio said plurality of loans secured by one or more products comprising one or more financial instruments that employ or accomplish a form of risk transfer and have a portion or component having a potential to grow in value over time; B) means for calculating an aggregate risk value for said portfolio, said aggregate risk value based on a current gap value, said current gap value representing the difference between a premium paid and a value of each of said one or more products; C) means for receiving commitments associated with one or more gap enhancement instruments executed by one or more parties other than the borrowers and addressing said current gap value; and D) means for providing to a credit provider; (i) said aggregate risk value; and (ii) enhancement data representative of said one or more gap enhancement instruments and supportive of said credit facility for said portfolio of loans, having terms favorably responsive to the presence of said enhancement data.
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26. A computer system for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, said system comprising:
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one or more data tables including data associated with one or more insurance products purchased by said one or more borrowers using proceeds of one or more of said plurality of loans, said one or more insurance products naming one or more employees of said one or more borrowers as an insured, wherein said data in said one or more data tables include a current gap value associated with each of said one or more insurance products, said current gap value representing the difference between a premium paid and a value of each of said one or more insurance products; and a processor configured to execute; a gap enhancement module configured to; (a) retrieve from said one or more data tables a current amount at risk for each of said one or more insurance products, said current amount at risk including said premium paid; (b) identify whether one or more gap enhancement instruments executed by one or more parties other than the one or more borrowers and addressing said current gap value already provide security for said plurality of loans; (c) retrieve from said one or more data tables said value of each of said one or more insurance products, said value representing a current value of each of said one or more insurance products, said current value based at least in part on (i) a current net cash value of each of said one or more insurance products, (ii) a current accumulated value of each of said one or more insurance products, and (iii) a current collateral value of any of said identified one or more gap enhancement instruments already providing security for said plurality of loans; (d) calculate said current gap value; (e) compare said current gap value to a user-defined limit for each of said one or more insurance products; (f) if said current gap value exceeds said user-defined limit for a deficient one of said one or more insurance products, identify and select one or more gap enhancement instruments from among said one or more gap enhancement instruments, said selected one or more gap enhancement instruments comprising; (i) a rider on said deficient one of said insurance products waiving a portion of a surrender fee in favor of said loan originator, said surrender fee representing an amount charged in the event said deficient one of said insurance products is surrendered or one or more of said borrowers defaults on one or more of said loans; (ii) an agreement to deposit funds in a reserve account, said funds representing a portion of a surrender fee, said surrender fee representing an amount charged in the event said deficient one or more of said insurance products is surrendered or one or more of said borrowers defaults on one or more of said loans;
or(iii) an agreement by one or more parties other than said one or more borrowers, in the event of a surrender or default event, to extend a gap loan to said loan originator in an amount approximately equal to said current gap value, wherein said loan originator'"'"'s obligation to repay said gap loan is secured by a pledged asset; and (g) receive commitments associated with said selected one or more gap enhancement instruments for said deficient one of said one or more insurance products; and
a finance module configured to;(i) combine into a portfolio said plurality of loans each secured by one or more of said insurance products; (ii) calculate an aggregate risk value for said portfolio of loans, said aggregate risk value based on said current gap value of each of said one or more insurance products in said portfolio; (iii) receive enhancement data representative of execution of said selected one or more gap enhancement instruments by one or more parties other than said one or more borrowers; (iv) provide to a credit provider said aggregate risk value and said enhancement data; and (v) provide to an investment bank said aggregate risk value and said enhancement data, wherein said aggregate risk value and said enhancement data are of sufficient quality to permit an issuance of asset-backed security interests in said portfolio of loans, and wherein said asset-backed security interests are suitable for trading in the capital markets to multiple investors. - View Dependent Claims (27, 28, 29, 30, 31, 32)
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33. A computer program product comprising a computer-readable storage medium having an executable program code stored thereon, wherein said program code instructs a processor to perform steps for facilitating acquisition of a credit facility for a plurality of loans provided by a loan originator to one or more borrowers, said steps comprising:
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A) accessing one or more data tables, wherein said data tables are located on a data storage system and include data associated with one or more products comprising one or more financial instruments that employ or accomplish a form of risk transfer and have a portion or component having a potential to grow in value over time; B) combining into a portfolio said plurality of loans secured by one or more of said products; C) calculating an aggregate risk value for said portfolio, said aggregate risk value based on a current gap value stored in said one or more data tables, said current gap value representing the difference between a premium paid and a value of each of said one or more products; D) receiving commitments associated with one or more gap enhancement instruments executed by one or more parties other than the borrowers and addressing said current gap value; and E) providing to a credit provider; (i) said aggregate risk value; and (ii) enhancement data representative of said one or more executed gap enhancement instruments and supportive of said credit facility for said portfolio of loans, having terms favorably responsive to the presence of said enhancement data.
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Specification