Computer support for mortgage lock option

• US 20050240516A1
• Filed: 06/13/2004
• Published: 10/27/2005
• Est. Priority Date: 06/13/2003
• Status: Active Grant

• Current Assignee: Peter K. Trzyna
• Original Assignee: Peter K. Trzyna
• Inventors: Crocker, Greg H.
• Granted Patent: US 7,882,022 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A computer-aided method for carrying out an option on a loan, for example a residential mortgage loan, the method including the steps of: receiving information into a memory, the specifications defining the option on the loan, the specifications including a trigger for executing the option, the specifications such as an interest rate; evaluating the trigger with a computer accessing further data; and if the trigger is detected, signaling execution of the option. The option can be, for example, an interest rate floor, ceiling, or both. Computer cooperation can facilitates closing of the loan and downstream processing, if so desired.

Claims

1. Apparatus for controlling a loan option, the apparatus comprising;

a computer programmed for carrying out the steps of receiving information into a memory defining specifications for the option on the loan, the specifications including a trigger for executing the option, evaluating the trigger, and if the trigger occurs, signaling execution of the option.

2. The apparatus of claim 1, wherein subsequent to the signaling, executing the loan in accordance with the option.

3. The apparatus of claim 1, wherein the trigger is an interest rate for a lock for a mortgage according to the option.

4. The apparatus of claim 3, wherein the interest rate trigger is a floor.

5. The apparatus of claim 3, wherein the interest rate trigger is a ceiling.

6. The apparatus of claim 3, wherein the interest rate trigger is comprised of a floor and a ceiling.

7. A computer program product having computer code stored thereon, which when run on a computer causes the computer to perform the steps of:

receiving information into a memory defining specifications for the option on the loan, the specifications including a trigger for executing the option, evaluating the trigger, and if the trigger occurs, signaling execution of the option.

8. A system controlling closing of a loan, the system including:

a plurality of computers programmed to cooperate to effectuate an option on a loan, wherein one of the computers is programmed for carrying out the steps of receiving information into a memory defining specifications for the option on the loan, the specifications including a trigger for executing the option, evaluating the trigger, and if the trigger occurs, transmitting a communication signaling execution of the option to another of the other of the computers to control closing of the loan.

9. A computer-readable media tangibly embodying a program of instructions executable by a computer to perform the steps of receiving information into a memory defining specifications for the option on the loan, the specifications including a trigger for executing the option, evaluating the trigger, and if the trigger occurs, signaling execution of the option.

10. A computer-aided method for carrying out an option on a loan, the method including the steps of:

receiving information into a memory specifications defining the option on the loan, the specifications including a trigger for executing the option;

evaluating the trigger with a computer accessing further data; and

if the trigger is detected, signaling execution of the option.

11. The method of claim 10, wherein the step of receiving is carried out with the trigger being an interest rate for a lock for a mortgage.

12. The method of claim 11, wherein the step of receiving is carried out with the interest rate trigger being a floor.

13. The method of claim 11, wherein the step of receiving is carried out with the interest rate trigger being a ceiling.

14. The method of claim 11, wherein the step of receiving is carried out with the interest rate trigger being comprised of a floor and a ceiling.

15. A system for carrying out a loan option, the system comprising:

a plurality of computers controlled by respective programs, the computers arranged to communicate data structured to identify an option on a loan; and

means for effectuating the option to control closing of the loan.

16. The system of claim 15, further including means for computing a secondary market characteristic related to the option.

17. A computer system for implementing a loan, the system including:

a database of data relating to mortgage loan applications, the database including an indicator of an application status other than a lock status and a float status; and

a program accessing the database to analyze the status information in carrying out closings of some of the loans.

18. The computer system of claim 17, wherein the indicator indicates an option status.

19. The computer system of claim 17, wherein the program uses shock analysis on said application status loan applications.

20. The computer system of claim 18, wherein said database includes at least one of a floor, a ceiling, and both, in association with said option status.