Modifiable mortgage

• US 8,595,130 B2
• Filed: 08/31/2010
• Issued: 11/26/2013
• Est. Priority Date: 12/05/2008
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Johnson, Shane A., Curry, Lisa D., Howard, Pamela Marguerite, Kelly, Michael J.
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): CRANFORD, MICHAEL D
• Application Number:
  US12/872,929
• Publication Number:
  US 20110022512A1
• Time in Patent Office: 1,183 Days
• Field of Search: 705/38
• US Class Current: 705/38
• 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

Abstract

Embodiments of the present invention relate to methods and apparatuses for providing, processing, and/or servicing a mortgage loan having one or more exercisable options. For example, in some embodiments, a method is provided that includes storing, in a non-transitory computer-readable medium, one or more terms of an exercisable option, where the option is incorporated into a mortgage loan, where exercising the option results in one or more terms of the mortgage loan being modified, and where one or more terms of the option are based at least partially on a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan.

Claims

1. A method comprising:

storing, in a non-transitory computer-readable medium, one or more terms of an exercisable option that is incorporated into an individual mortgage loan via a computing device processor, wherein the one or more terms of the option are tailored according to at least a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan;

exercising the option via a computing device processor; and

automatically modifying one or more terms of the mortgage loan based on the exercised option via a computing device processor.

2. The method of claim 1, further comprising:

determining the non-mortgage relationship; and

determining the exercisable option based at least partially on the non-mortgage relationship.

3. The method of claim 1, further comprising:

determining the non-mortgage relationship; and

determining that the borrower associated with the mortgage loan is eligible to receive the option based at least partially on the non-mortgage relationship.

4. The method of claim 1, further comprising:

modifying, upon exercise of the option, the one or more terms of the mortgage loan in accordance with the option.

5. The method of claim 1, wherein exercising the option results in a modification of at least one of an interest rate, loan term, amortization term, number of loan payments, amount of the loan payments, or frequency of the loan payments associated with the mortgage loan.

6. The method of claim 1, wherein the one or more terms of the option comprise a term modification feature, such that exercising the option results in the term of the mortgage loan being extended, wherein the length of the extension is based at least partially on the non-mortgage relationship.

7. The method of claim 1, wherein the one or more terms of the option comprise a loan payment type modification feature, such that exercising the option results in a loan payment amount type associated with the mortgage loan being modified from a composite amount to an interest-only amount.

8. The method of claim 1, wherein the one or more terms of the option comprises a loan payment amount modification feature, such that exercising the option results in a loan payment amount associated with the mortgage loan being modified from a first amount to a second amount, wherein the second amount is based at least partially on the non-mortgage relationship.

9. The method of claim 1, wherein the one or more terms of the option comprise an interest rate modification feature, such that exercising the option results in the value of a fixed interest rate of the mortgage loan being modified from a first value to a second value, wherein the second value is based at least partially on the non-mortgage relationship.

10. The method of claim 1, wherein the one or more terms of the option comprise the number of times the option can be exercised, wherein the number is based at least partially on the non-mortgage relationship.

11. The method of claim 1, wherein the non-mortgage relationship comprises a value of one or more non-mortgage accounts, wherein the one or more non-mortgage accounts are associated with the borrower and maintained by the lender.

12. The method of claim 1, wherein the non-mortgage relationship comprises a length of time that one or more non-mortgage accounts associated with the borrower have been maintained by the lender.

13. The method of claim 1, wherein one or more identifiers are assigned to the non-mortgage relationship to indicate the relative strength of the non-mortgage relationship, and wherein the one or more terms of the option are based at least partially on the one or more identifiers.

14. A computer apparatus comprising:

a processor and a memory; and

a mortgage application software module stored in the memory, comprising executable instructions specifically configured such that when executed by the processor cause the processor to;

store in a non-transitory computer-readable medium one or more terms of an exercisable option;

that is incorporated into an individual mortgage loan, wherein the one or more terms of the option are tailored according to at least a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan;

exercise the option; and

automatically modify one or more terms of the mortgage loan based on the exercised option.

15. The apparatus of claim 14, wherein

the processor is configured to:

determine the non-mortgage relationship; and

determine the exercisable option based at least partially on the non-mortgage relationship.

16. The apparatus of claim 14, wherein

the processor is configured to:

determine the non-mortgage relationship; and

determine that the borrower associated with the mortgage loan is eligible to receive the option based at least partially on the non-mortgage relationship.

17. The apparatus of claim 14, wherein the non-mortgage relationship comprises a value of one or more non-mortgage accounts, wherein the one or more non-mortgage accounts are associated with the borrower and maintained by the lender.

18. The apparatus of claim 14, wherein the non-mortgage relationship comprises a length of time that one or more non-mortgage accounts associated with the borrower have been maintained by the lender.

19. The apparatus of claim 14, wherein one or more identifiers are assigned to the non-mortgage relationship to indicate the relative strength of the non-mortgage relationship, and wherein the one or more terms of the option are based at least partially on the one or more identifiers.

20. A computer program product comprising a non-transitory computer-readable medium, wherein the non-transitory computer-readable medium comprises computer-executable program code portions stored therein, wherein the computer-executable program code portions comprise:

a first program code portion operable to determine a non-mortgage relationship between a borrower associated with an individual mortgage loan and a lender associated with the mortgage loan;

a second program code portion operable to determine an exercisable option to incorporate into the mortgage loan, wherein one or more terms of the option are tailored according to at least the non-mortgage relationship;

a third program code portion operable to exercise the option; and

a fourth program code portion operable to modify, upon exercise of the option, one or more term of the mortgage loan in accordance with the option.

21. The computer program product of claim 20, further comprising:

a third program code portion operable to determine that the borrower associated with the mortgage loan is eligible to receive the option based at least partially on the non-mortgage relationship.

22. The computer program product of claim 20, wherein the non-mortgage relationship comprises a value of one or more non-mortgage accounts, wherein the one or more non-mortgage accounts are associated with the borrower and maintained by the lender.

23. A method comprising:

incorporating an exercisable option into an individual mortgage loan via a computing device processor, wherein the incorporating the exercisable option is based at least partially on a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan;

exercising the option via a computing device processor; and

automatically modifying one or more of the terms of the mortgage loan based on the exercised option via a computing device processor.

24. A method comprising:

automatically modifying, upon exercise of an option, one or more terms of an individual mortgage loan via a computing device processor, wherein the option was incorporated into the mortgage loan prior to the exercise, and wherein the modifying the one or more terms of the mortgage loan is based at least partially on a non-mortgage relationship between a borrower associated with the mortgage loan and a lender associated with the mortgage loan.