System and method for creating financial assets
First Claim
1. A system for creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans and which are configured to operate as hedges against risks that oppose the different types of sub-loan level risk, comprising:
- a processor configured to execute computer-executable instructions tangibly embodied on non-transitory computer readable media, the computer-executable instructions being executable by the processor to implementa decomposition tool configured to decompose each of the plurality of home mortgage loans into a plurality of sub-loan level cash flows;
a repackaging tool configured to repackage the plurality of sub-loan level cash flows to form the financial assets, including;
selecting a sub-combination of the plurality of sub-loan level cash flows, the sub-combination of sub-loan level cash flows comprising sub-loan level cash flows from across the plurality of home mortgage loans, and the sub-combination of sub-loan level cash flows exhibiting heightened sensitivity to at least one of the different types of sub-loan level risk relative to the sensitivity exhibited by the plurality of home mortgage loans as a whole,packaging the sub-combination of sub-loan level cash flows to create one of the financial assets, the financial asset that is created accentuating the at least one of the different types of sub-loan level risk in accordance with the heightened sensitivity exhibited by the sub-combination of sub-loan level cash flows, thereby configuring the financial asset to operate as a hedge against a risk that opposes the at least one of the different types of sub-loan level risk, andrepeating the selecting and packaging steps to create additional financial assets, the additional financial assets including different financial assets which accentuate other ones of the different types of sub-loan level risk; and
a graphical user interface configured to display information on a display, the information comprisingindicia representative of the plurality of sub-loan level cash flows,indicia representative of the financial assets, andindicia representative of a relationship between the plurality of sub-loan level cash flows and the financial assets, including a manner in which at least some of the plurality of sub-loan level cash flows that flow into the financial assets are traceable back to one or more of the plurality of home mortgage loans.
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Accused Products
Abstract
A system for creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans and which are configured to operate as hedges against risks that oppose the different types of sub-loan level risk is provided. A decomposition tool is configured to decompose each of the plurality of home mortgage loans into a plurality of sub-loan level cash flows. A repackaging tool is configured to repackage the plurality of sub-loan level cash flows to form the financial assets. Repackaging includes selecting a sub-combination of the plurality of sub-loan level cash flows, packaging the sub-combination of sub-loan level cash flows to create one of the financial assets, and repeating the selecting and packaging steps to create additional financial assets. A graphical user interface is configured to display information relating to the sub-loan level cash flows and financial assets on a display.
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Citations
20 Claims
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1. A system for creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans and which are configured to operate as hedges against risks that oppose the different types of sub-loan level risk, comprising:
a processor configured to execute computer-executable instructions tangibly embodied on non-transitory computer readable media, the computer-executable instructions being executable by the processor to implement a decomposition tool configured to decompose each of the plurality of home mortgage loans into a plurality of sub-loan level cash flows; a repackaging tool configured to repackage the plurality of sub-loan level cash flows to form the financial assets, including; selecting a sub-combination of the plurality of sub-loan level cash flows, the sub-combination of sub-loan level cash flows comprising sub-loan level cash flows from across the plurality of home mortgage loans, and the sub-combination of sub-loan level cash flows exhibiting heightened sensitivity to at least one of the different types of sub-loan level risk relative to the sensitivity exhibited by the plurality of home mortgage loans as a whole, packaging the sub-combination of sub-loan level cash flows to create one of the financial assets, the financial asset that is created accentuating the at least one of the different types of sub-loan level risk in accordance with the heightened sensitivity exhibited by the sub-combination of sub-loan level cash flows, thereby configuring the financial asset to operate as a hedge against a risk that opposes the at least one of the different types of sub-loan level risk, and repeating the selecting and packaging steps to create additional financial assets, the additional financial assets including different financial assets which accentuate other ones of the different types of sub-loan level risk; and a graphical user interface configured to display information on a display, the information comprising indicia representative of the plurality of sub-loan level cash flows, indicia representative of the financial assets, and indicia representative of a relationship between the plurality of sub-loan level cash flows and the financial assets, including a manner in which at least some of the plurality of sub-loan level cash flows that flow into the financial assets are traceable back to one or more of the plurality of home mortgage loans. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A system for creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans, the plurality of home mortgage loans each having a loan asset and a servicing asset, comprising:
a processor configured to execute computer-executable instructions tangibly embodied on non-transitory computer readable media, the computer-executable instructions being executable by the processor to implement servicer reporting logic configured to account for a compensation provided to a servicer, the servicer reporting logic further configured to relate the compensation to the value of the home mortgage loan, wherein compensation provided to the servicer does not decrease through time during a term of the loan; a repackaging tool configured to repackage the plurality of sub-loan level cash flows to form the financial assets, including; selecting a sub-combination of the plurality of sub-loan level cash flows, the sub-combination of sub-loan level cash flows comprising compensation provided to the servicer from across the plurality of home mortgage loans, and the sub-combination of sub-loan level cash flows exhibiting heightened sensitivity to at least one of the different types of sub-loan level risk relative to the sensitivity exhibited by the plurality of home mortgage loans as a whole, packaging the sub-combination of sub-loan level cash flows to create a financial asset, and repeating the selecting and packaging steps to create additional financial assets, the additional financial assets including different financial assets which accentuate other types of sub-loan level risk; and a graphical user interface configured to display information on a display, the information comprising indicia representative of the plurality of sub-loan level cash flows, indicia representative of the financial assets, and indicia representative of a relationship between the plurality of sub-loan level cash flows and the financial assets, including a manner in which at least some of the plurality of sub-loan level cash flows that flow into the financial assets are traceable back to one or more of the plurality of home mortgage loans. - View Dependent Claims (13, 14, 15, 16, 17, 18)
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19. A method of creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans and which are configured to operate as hedges against risks that oppose the different types of sub-loan level risk, comprising:
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decomposing, using a decomposition tool, each of the plurality of home mortgage loans into a plurality of sub-loan level cash flows, wherein the decomposition tool is implemented using computer-executable instructions that are tangibly embodied on non-transitory computer readable media and are executable by a processor; repackaging, using a repackaging tool, the plurality of sub-loan level cash flows to form the financial assets, wherein the repackaging tool is implemented using computer-executable instructions that are tangibly embodied on non-transitory computer readable media and are executable by the processor, where the repackaging operation comprises selecting a sub-combination of the plurality of sub-loan level cash flows, the sub-combination of sub-loan level cash flows comprising sub-loan level cash flows from across the plurality of home mortgage loans, and the sub-combination of sub-loan level cash flows exhibiting heightened sensitivity to at least one of the different types of sub-loan level risk relative to the sensitivity exhibited by the plurality of home mortgage loans as a whole, packaging the sub-combination of sub-loan level cash flows to create one of the financial assets, the financial asset that is created accentuating the at least one of the different types of sub-loan level risk in accordance with the heightened sensitivity exhibited by the sub-combination of sub-loan level cash flows, thereby configuring the financial asset to operate as a hedge against a risk that opposes the at least one of the different types of sub-loan level risk, and repeating the selecting and packaging steps to create additional financial assets, the additional financial assets including different financial assets which accentuate other ones of the different types of sub-loan level risk; and displaying, using a graphical user interface, information on a display, wherein the graphical user interface is implemented using computer-executable instructions that are tangibly embodied on non-transitory computer readable media and are executable by the processor, the information comprising indicia representative of the plurality of sub-loan level cash flows, indicia representative of the financial assets, and indicia representative of a relationship between the plurality of sub-loan level cash flows and the financial assets, including a manner in which at least some of the plurality of sub-loan level cash flows that flow into the financial assets are traceable back to one or more of the plurality of home mortgage loans. - View Dependent Claims (20)
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Specification