Home resale price protection plan

• US 7,962,353 B1
• Filed: 09/17/2010
• Issued: 06/14/2011
• Est. Priority Date: 04/20/2009
• Status: Active Grant

• Current Assignee: Pricelock Finance LLC
• Original Assignee: Pricelock Finance LLC
• Inventors: Overton, Christopher W., Menzies, Steven M., Silver, Jeffrey A.
• Primary Examiner(s): Merchant; Shahid R
• Application Number:
  US12/884,523
• Time in Patent Office: 270 Days
• Field of Search: 705/4, 705/35, 705/38
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A Home Resale Price Protection Plan provides a payment to a homeowner should the homeowner have to sell his or her house at a loss. In exchange for an upfront fee, the homeowner would receive a payment for the lesser of their actual loss or the loss calculated by multiplying their original purchase price by the proportional drop in an appropriate housing price index.

Claims

1. A system for providing a real time Home Resale Price Protection Plan price quote to a given client who is a prospective buyer, said price quote comprises a fee for said Home Resale Price Protection Plan, and said system comprising:

a. a Transactional System which comprises a first computer for accepting applicant information from an agent and for providing said real time quote based on a pricing model; and

wherein said first computer is specifically modified to calculate said fee for said Home Resale Price Protection Plan for said given client purchasing a house to be protected and wherein said specific modification comprises computer readable instructions for calculating said fee according to the relationship;

2. The system of claim 1 wherein:

3. The system of claim 1 wherein said Contractual Liability Insurance Coverage further comprises the payment of substantially all of said future claims made by said given client and wherein said computer readable instructions for calculating said fee further comprise instructions for calculating the net cost of said Contractual Liability Insurance Coverage paying said claims.

4. The system of claim 3 wherein said net cost is less than zero due to the ability of said admitted carrier to credit the anticipated payment of said future claims on its books.

5. The system of claim 1 wherein:

P_i(t)=CD_i(t)*PS_i(t)

where;

CD_i(t) is the cumulative probability density function that said drop in price index for said house i has occurred prior to future time t; and

PS_i(t) is the probability density function that a said house i will sell at time t.

6. The system of claim 5 wherein:

CD_i(t)=(1−

e<sup>−

t/τ

d</sup>)

where;

τ

_d is the exponential time constant for the frequency of housing price drops in the region of house i.

7. The system of claim 6 wherein τ

_d is in the range of 5 years to 20 years.

8. The system of claim 5 wherein:

9. The system of claim 8 wherein τ

_s is in the range of 3 years to 12 years.

10. The system of claim 1 which further comprises an Analytic System, said Analytic System comprising a second computer including a pricing algorithm comprising said pricing model wherein said Analytic System has been specifically modified to update said pricing model and transmit the resulting updated pricing model to said Transactional System wherein said specific modification of said Analytic System comprises computer readable instructions to perform said update and means for transmitting said update to said Transactional System.

11. The system of claim 10 wherein said Analytic System has been specifically modified to receive the number of plans sold and house price data from said Transactional System and wherein said specific modification of said Analytic System comprises computer readable instructions for modifying said pricing model such that a price quote for a Home Resale Price Protection Plan in a given geographic area increases if the number of plans sold in said given geographic area exceeds a threshold value.

12. The system of claim 10 wherein said means for transmitting said update includes a modem or tangible computer readable media.

13. The system of claim 1 wherein said end effect adjustment period is in the range of 0 to 1 year.

14. The system of claim 1 wherein termbegin is in the range of 3 to 5 years.