System and method for providing a common data and analytic framework for valuating financial instruments and portfolios

• US 8,458,072 B1
• Filed: 12/23/2002
• Issued: 06/04/2013
• Est. Priority Date: 12/28/2001
• Status: Active Grant

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Collins, Susan
• Primary Examiner(s): TINKLER, MURIEL S
• Application Number:
  US10/326,290
• Time in Patent Office: 3,816 Days
• Field of Search: 705/36, 705/38.R
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system for determining the capacity of a geographic area to support a specific product by identifying an index of variables associated with potential buyers in the geographic area. The system includes a data gathering component and a processing component. The data gathering component obtains a profile about the product and additional information about similar products from several of sources. The additional information includes identified characteristics of potential buyers. The processing component processes the data by identifying variables that characterize potential buyer, assigns a score to each variable, assigns the variables to the index, determines a formula for the index, executes the formula against information associated with the geographic area, divides the geographic area into sub-groups and analyzes each sub-group to determine the capacity of the geographic area to support the product.

Claims

1. A computer implemented method for determining the capacity of geographic areas to support specific mortgage loan products by identifying indices of variables associated with potential buyers in the geographic areas, the method comprising the steps of:

obtaining, by a computer, a profile for a mortgage loan product, the profile having characteristics of potential buyers of the mortgage loan product;

identifying, by a computer, variables that characterize desired buyers of the mortgage loan product from the profile;

obtaining, by a computer, additional information from another source and extracting identified characteristics of desired buyers of the mortgage loan product from the additional information;

performing, by a computer, a regression on the additional information to determine an extent to which the variables that characterize desired buyers of the mortgage loan product are correlated to the profile having characteristics of potential buyers of the mortgage loan product;

assigning, by a computer, a statistical score to each of the variables based upon the regression;

storing the variables in an index, in a computer memory, and weighing each of the variables based on the statistical score;

determining a formula for the index, wherein the formula implements the variables and quantifies a number for potential buyers of the mortgage loan product for any given geographical area based upon the statistical scores for the variables in the given geographical area;

executing, by a computer, the formula against information associated with the geographic area; and

dividing the geographic area into sub-groups and assigning, by a computer, a sub-group score to each sub-group based on the number of variables in the sub-group that have a relatively high correlation to the profile, wherein each sub-group is analyzed to determine the capacity of the geographic area to support the mortgage loan product.

2. The method of claim 1, wherein weights in the index are adjustable.

3. The method of claim 1, wherein the weight assigned to each variable in the index is compared with information associated with similar products to ensure the accuracy of the weights in the index.

4. The method of claim 1, wherein ranges for each variable in the index are set based on the correlation between the variable and the profile.

5. The method of claim 1, wherein the information associated with the geographic area is a map of the geographic area.

6. The method of claim 1, wherein the map is divided into tracks, with a score is assigned to each track based on the number of variables with high correlation to the profile in the track, wherein the tracks are sorted and assigned to quintiles of the geographic area, and wherein each quintile is analyzed to determine the number of the desired buyers in the geographic area.

7. A computer program product, for determining the capacity of geographic areas to support specific mortgage loan products by identifying indices of variables associated with potential buyers in the geographic areas, the computer program product comprising a computer readable medium for storing computer-readable instructions that are configured to carry out steps comprising:

obtaining a profile for a mortgage loan product, the profile having characteristics of potential buyers of the mortgage loan product;

identifying variables that characterize desired buyers of the mortgage loan product from the profile;

obtaining additional information from another source and extracting identified characteristics of desired buyers of the mortgage loan product from the additional information;

performing a regression on the additional information to determine an extent to which the variables that characterize desired buyers of the mortgage loan product are correlated to the profile having characteristics of potential buyers of the mortgage loan product;

assigning a statistical score to each of the variables based upon the regression;

storing the variables in an index and weighing each of the variables based on the statistical score;

determining a formula for the index, wherein the formula implements the variables and quantifies a number for potential buyers of the mortgage loan product for any given geographical area based upon the statistical scores for the variables in the given geographical area;

executing the formula against information associated with the geographic area; and

dividing the geographic area into sub-groups and assigning a sub-group score to each sub-group based on the number of variables in the sub-group that have a relatively high correlation to the profile, wherein each sub-group is analyzed to determine the capacity of the geographic area to support the mortgage loan product.

8. The computer program product of claim 7, wherein weights in the index are adjustable.

9. The computer program product of claim 7, wherein the weight assigned to each variable in the index is compared with information associated with similar products to ensure the accuracy of the weights in the index.

10. The computer program product of claim 7, wherein ranges for each variable in the index are set based on the correlation between the variable and the profile.

11. The computer program product of claim 7, wherein the information associated with the geographic area is a map of the geographic area.

12. The computer program product of claim 7, wherein the map is divided into tracks, with a score is assigned to each track based on the number of variables with high correlation to the profile in the track, wherein the tracks are sorted and assigned to quintiles of the geographic area, and wherein each quintile is analyzed to determine the number of the desired buyers in the geographic area.

13. A system for determining the capacity of geographic areas to support specific mortgage loan products by identifying indices of variables associated with potential buyers in the geographic areas, the system comprising:

means for obtaining a profile for a mortgage loan product, the profile having characteristics of potential buyers of the mortgage loan product;

means for identifying variables that characterize desired buyers of the mortgage loan product from the profile;

means for obtaining additional information from another source and extracting identified characteristics of desired buyers of the mortgage loan product from the additional information;

means for performing a regression on the additional information to determine an extent to which the variables that characterize desired buyers of the mortgage loan product are correlated to the profile having characteristics of potential buyers of the mortgage loan product;

means for assigning a statistical score to each of the variables based upon the regression;

means for storing the variables in an index and weighing each of the variables based on the statistical score;

means for determining a formula for the index, wherein the formula implements the variables and quantifies a number for potential buyers of the mortgage loan product for any given geographical area based upon the statistical scores for the variables in the given geographical area;

means for executing the formula against information associated with the geographic area; and

means for dividing the geographic area into sub-groups and assigning a sub-group score to each sub-group based on the number of variables in the sub-group that have a relatively high correlation to the profile, wherein each sub-group is analyzed to determine the capacity of the geographic area to support the mortgage loan product.

14. The system of claim 13, wherein weights in the index are adjustable.

15. The system of claim 13, wherein the weight assigned to each variable in the index is compared with information associated with similar products to ensure the accuracy of the weights in the index.

16. The system of claim 13, wherein ranges for each variable in the index are set based on the correlation between the variable and the profile.

17. The system of claim 13, wherein the information associated with the geographic area is a map of the geographic area.

18. The system of claim 13, wherein the map is divided into tracks, with a score is assigned to each track based on the number of variables with high correlation to the profile in the track, wherein the tracks are sorted and assigned to quintiles of the geographic area, and wherein each quintile is analyzed to determine the number of the desired buyers in the geographic area.