System and method for defining loan products

• US 20040220873A1
• Filed: 12/17/2003
• Published: 11/04/2004
• Est. Priority Date: 12/30/2002
• Status: Abandoned Application

• Current Assignee: Fannie Mae
• Original Assignee: Fannie Mae
• Inventors: Simonds, John A. Jr., Mathewson, Mark D., Kemper, John L., Nolan, William R. III
• Application Number:
  US10/738,509
• Publication Number:
  US 20040220873A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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

A data processing system for processing data regarding a plurality of different types of loan products defines the plurality of types of loan products using a plurality of attributes. The different types of loan products are defined using different combinations of the plurality of attributes and/or different values for selected ones of the plurality of attributes.

Claims

1. A data processing system for processing data regarding a plurality of different types of loan products, wherein the data processing system defines the plurality of types of loan products using a plurality of attributes, wherein different types of loan products are defined using different combinations of the plurality of attributes and/or different values for selected ones of the plurality of attributes, wherein the data processing system comprises pricing logic, the pricing logic being configured to determine purchase prices for loan products and price adjustments for at least some of the plurality of attributes, the price adjustments being usable to adjust a base price to arrive at the purchase price for a particular loan product based on the plurality of attributes.

2. A data processing system according to claim 1 wherein, for at least some of the plurality of attributes, the price adjustments include both price adjustments based on market data and price adjustments based on risk analysis.

3. A data processing system for processing loan information, comprising:

acquisition logic, the acquisition logic including logic configured to receive acquisition information pertaining to loan term, interest rate, principal owed and other parameters for a plurality of loans, the acquisition logic further including pricing logic, the pricing logic including logic configured to associate pricing with loan information based on loan attributes;

reporting logic, the reporting logic including logic configured to receive payment reporting information regarding borrower payments in connection with the plurality of loans, perform loan accounting in connection with the borrower payments, and generate accounting output, the reporting information being received on an ongoing basis throughout at least a portion of a term of each the plurality of loans;

financial asset generation logic, the financial asset generation logic including logic configured to facilitate creation and maintenance of a plurality of financial assets backed by the plurality of loans, the creation and maintenance of the plurality of financial assets resulting in the generation of investment information; and

a rules engine, the rules engine comprising a series of business rules; and

wherein the loan information includes the acquisition information, the reporting information, and the investment information, and wherein the rules engine processes the loan information by applying the business rules to the loan information.

4. A data processing system according to claim 3, wherein the acquisition logic, the reporting logic, the financial asset generation logic, and the rules engine are provided on a common integrated data processing platform.

5. A data processing system according to claim 3, further comprising a common data storage system, the data storage system being commonly accessible to the acquisition logic, the reporting logic, and the financial asset generation logic.

6. A data processing system according to claim 5, wherein the data storage system comprises at least two data bases, wherein the at least two data bases are accessible by different portions of the acquisition logic, the reporting logic, and the financial asset generation logic, and wherein the at least two data bases are synchronized on at least approximately a weekly basis.

7. A data processing system according to claim 5, wherein the data storage system comprises at least two data bases, wherein the at least two data bases are accessible by different portions of the acquisition logic, the reporting logic, and the financial asset generation logic, and wherein the at least two data bases are synchronized on at least approximately a daily basis.

8. A data processing system according to claim 3, wherein the rules engine comprises a plurality of rules engines separately provided with the acquisition logic, the reporting logic, and the financial asset generation logic.

9. A data processing system according to claim 3, wherein the data processing system decomposes the plurality of loans into a plurality of assets represented by a plurality of cashflows, the plurality of cashflows includes a plurality of cashflows pertaining to principal payments, a plurality of cashflows pertaining to interest payments, a plurality of cashflows pertaining to servicing fees, and a plurality of cashflows relating to other borrower payments.

10. A data processing system according to claim 9, wherein the data processing system includes a cashflow mapping system, the cashflow mapping system permitting outgoing cashflows associated with the plurality of financial assets to be traced back to individual cashflows associated with specific ones of the plurality of loans.

11. A data processing system according to claim 9, wherein the data processing system decomposes each of the plurality of loans such that the plurality of cashflows represent substantially all possible sources of cashflow associated with the plurality of loans.

12. A data processing system according to claim 9, wherein the plurality of cashflows include negative cashflows.

13. A data processing system according to claim 3, wherein the plurality of financial assets generated by the financial asset generation logic includes a mortgage backed security backed by the plurality of loans.

14. A data processing system according to claim 13, wherein the investment information includes financial performance information regarding the mortgage backed security.

15. A data processing system according to claim 14, wherein the data processing system includes logic configured to determine a guarantee fee, the guarantee fee being a fee for guaranteeing timely payment of the plurality of loans that back the mortgage backed security.

16. A data processing system according to claim 3, wherein the reporting logic is configured to receive the information regarding borrower payments on a sub-monthly basis.

17. A data processing system according to claim 3, wherein the reporting logic is configured to receive the information regarding borrower payments on approximately a daily basis.

18. A data processing system according to claim 3, wherein the reporting logic is configured to receive the information regarding borrower payments in approximately real time.

19. A data processing system comprising:

acquisition logic, the acquisition logic including logic configured to receive information pertaining to loan term, interest rate, principal owed and other parameters for a plurality of loans the acquisition logic including pricing logic to associate pricing with loan information based on loan attributes;

reporting logic, the reporting logic including logic configured to receive payment information regarding borrower payments in connection with the plurality of loans, perform loan accounting in connection with the borrower payments, and generate accounting output, the payment information being received on an ongoing basis throughout at least a portion of a term of each the plurality of loans;

financial asset generation logic, the financial asset generation logic including logic configured to facilitate creation and maintenance of a plurality of financial assets backed by the plurality of loans; and

wherein the acquisition logic, the reporting logic, and the financial asset generation logic are provided on a common integrated data processing platform.

20. A data processing system according to claim 19, further comprising a common data storage system, the data storage system being commonly accessible to the acquisition logic, the reporting logic, and the financial asset generation logic.

21. A data processing system according to claim 20, wherein the data storage system comprises at least two data bases, wherein the at least two data bases, are accessible by different portions of the acquisition logic, the reporting logic, and the financial asset generation logic, and wherein the at least two data bases are synchronized on at least approximately a weekly basis.

22. A data processing system according to claim 21, wherein the data, storage system comprises at least two data bases, wherein the at least two data bases are accessible by different portions of the acquisition logic, the reporting logic, and the financial asset generation logic, and wherein the at least two data bases are synchronized on at least approximately a daily basis.

23. A data processing system according to claim 19,

wherein the system further comprises a process controller, the process controller being coupled to the acquisition logic, the reporting logic, and the financial asset generation logic;

wherein the payment information is cashflow information, and the cashflow information further comprises information pertaining to payments made to holders of the financial assets backed by the plurality of loans; and

wherein the process controller has embedded therein information on processing interdependencies between the acquisition logic, the reporting logic, the financial asset generation logic, and the pricing logic, the process controller using the embedded information to control processing of the cashflow information by the reporting logic and the financial asset generation logic.

24. A data processing system according to claim 19, further comprising an Internet-enabled user interface, the Internet-enabled user interface permitting a user to access the data processing system by way of the Internet.

25. A data processing system according to claim 19, wherein the acquisition logic further comprises

committing logic configured to permit a seller of the plurality of loans to enter into a commitment to sell the loans, and

deal management logic configured to track terms of deals entered into with a seller of the plurality of loans.

26. A data processing system according to claim 25, wherein the reporting logic further comprises

comparison logic configured to calculate expected payment information pertaining to the plurality of loans and to compare the expected payment information with the received payment information,

accounting logic configured to generate accounting records reflecting the received payment information, and

aggregation logic configured to aggregate cashflows from the plurality of loans to generate payment information for the plurality of financial assets.

27. A data processing system according to claim 19, wherein the reporting logic is configured to receive the information regarding borrower payments on a sub-monthly basis.

28. A data processing system according to claim 19, wherein the reporting logic is configured to receive the information regarding borrower payments on approximately a daily basis.

29. A data processing system comprising:

means for receiving acquisition information pertaining to loan term, interest rate, principal owed, and other parameters for a plurality of loans;

means for receiving payment reporting information regarding borrower payments in connection with the plurality of loans;

means for creating and maintaining a plurality of financial instruments backed by a plurality of loans; and

means for associating, pricing with loan information based on loan attributes, whereby loan products can be priced according to loan-level attributes.