Systems and methods for providing a mortgage with a sliding credit line
First Claim
1. A computer-implemented method of creating a mortgage to assist a borrower and to create greater risk certainty for an investor, said method comprising:
- obtaining, from an electronic database, data representing credit information of the borrower;
calculating, using a computer data processor, a level of risk associated with the borrower based on the data representing credit information;
establishing, using the computer data processor, a single sliding equity mortgage based on the determined level of risk associated with the borrower, the single sliding equity mortgage being established with a maximum amount of debt at a time of issuing the single sliding equity mortgage and being the only mortgage issued for a property;
distributing, upon closing the single sliding equity mortgage, an initial amount of debt that is less than the maximum amount of debt;
calculating, using the computer data processor, a second amount of debt for the single sliding equity mortgage based on the determined level of risk associated with the borrower, where a sum of the second amount of debt and the initial amount of debt does not exceed the maximum amount of debt; and
modifying, using the computer data processor, the single sliding equity mortgage balance to indicate that a total amount of debt due on the single sliding equity mortgage includes the sum of the second amount of debt and the initial amount of debt, after issuing the single sliding equity mortgage and without initiating a new mortgage to secure the second amount, whereinthe maximum amount of debt associated with the single sliding equity mortgage is dynamic and changes dynamically after the closing based on appreciation or depreciation of an underlying asset associated with the single sliding equity mortgage.
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0 Petitions
Accused Products
Abstract
Systems and methods consistent with the present invention provide a mortgage with a primary credit line and a sliding credit line, such that the borrower may request to borrow from the sliding credit line as part of the original mortgage. A level of risk associated with the borrower may be determined based on credit information of the borrower; a first credit line may be established based on the determined level of risk associated with the borrower, the first credit line being set as a debt of the mortgage; a second credit line may be established based on the determined level of risk associated with the borrower, the second credit line being set as a maximum to which the debt of the mortgage may be increased during the mortgage; and the mortgage may be offered to the borrower with the established first and second credit lines, such that a single first lien may serve as security for the first and second credit lines. Moreover, a mortgage lender may record the single first lien as the sum of the primary and sliding credit lines.
64 Citations
21 Claims
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1. A computer-implemented method of creating a mortgage to assist a borrower and to create greater risk certainty for an investor, said method comprising:
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obtaining, from an electronic database, data representing credit information of the borrower; calculating, using a computer data processor, a level of risk associated with the borrower based on the data representing credit information; establishing, using the computer data processor, a single sliding equity mortgage based on the determined level of risk associated with the borrower, the single sliding equity mortgage being established with a maximum amount of debt at a time of issuing the single sliding equity mortgage and being the only mortgage issued for a property; distributing, upon closing the single sliding equity mortgage, an initial amount of debt that is less than the maximum amount of debt; calculating, using the computer data processor, a second amount of debt for the single sliding equity mortgage based on the determined level of risk associated with the borrower, where a sum of the second amount of debt and the initial amount of debt does not exceed the maximum amount of debt; and modifying, using the computer data processor, the single sliding equity mortgage balance to indicate that a total amount of debt due on the single sliding equity mortgage includes the sum of the second amount of debt and the initial amount of debt, after issuing the single sliding equity mortgage and without initiating a new mortgage to secure the second amount, wherein the maximum amount of debt associated with the single sliding equity mortgage is dynamic and changes dynamically after the closing based on appreciation or depreciation of an underlying asset associated with the single sliding equity mortgage. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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20. A system for creating a mortgage to assist a borrower and to create greater risk certainty for an investor, said system comprising:
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a processor; and a memory, wherein the processor and the memory; determine a level of risk associated with the borrower based on credit information of the borrower; establish a single sliding equity mortgage based on the determined level of risk associated with the borrower, the single sliding equity mortgage being established with a maximum amount of debt at a time of issuing the single sliding equity mortgage and being the only mortgage issued for a property; distribute, upon closing the single sliding equity mortgage, an initial amount of debt that is less than the maximum amount of debt; establish a second amount of debt for the single sliding equity mortgage based on the determined level of risk associated with the borrower, where a sum of the second amount and the initial amount is set as the maximum amount of debt; and modify the single sliding equity mortgage balance to indicate that a total amount of debt due on the single sliding equity mortgage includes the sum of the second amount of debt and the initial amount of debt, after issuing the single sliding equity mortgage and without initiating a new mortgage to secure the second amount, wherein the maximum amount of debt associated with the single sliding equity mortgage is dynamic and changes dynamically after the closing based on appreciation or depreciation of an underlying asset associated with the single sliding equity mortgage.
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21. A computer program product for creating a mortgage to assist a borrower and to create greater risk certainty for an investor, the computer program product comprising:
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a tangible computer readable medium including; code that determines a level of risk associated with the borrower based on credit information of the borrower; code that establishes a single sliding equity mortgage based on the determined level of risk associated with the borrower, the single sliding equity mortgage being established with a maximum amount of debt at a time of issuing the single sliding equity mortgage and being the only mortgage issued for a property; code that distributes, upon closing the single sliding equity mortgage, an initial amount of debt that is less than the maximum amount of debt; code that establishes a second amount of debt for the single sliding equity mortgage based on the determined level of risk associated with the borrower, where a sum of the second amount and the initial amount of debt does not exceed the maximum amount of debt; and code that modifies the single sliding equity mortgage balance to indicate that a total amount of debt due on the single sliding equity mortgage includes the sum of the second amount of debt and the initial amount of debt, after issuing the single sliding equity mortgage and without initiating a new mortgage to secure the second amount, wherein the maximum amount of debt associated with the single sliding equity mortgage is dynamic and changes dynamically after the closing based on appreciation or depreciation of an underlying asset associated with the single sliding equity mortgage.
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Specification