Method of cost effectively funding a loan
OwnerDouglas Monticcioloinventor
Life of this patent
Estimating the term…
Abstract
A method of achieving cost effective funding by providing a financial guaranty in the form of reinsurance to an insurance company to insure the lender's or a third party's loans. The financial guaranty enables the lender (i.e., the originator of the loan) or a third party to retain a first loss on a pool of assets such as, for example, a pool of loans underwritten by the lender or third party. The financial guaranty preferably provides sufficient coverage for loan losses that may occur due default of a loan or a pool of loans and induces an insurer to issue the insurance.
Claims13
A method of cost effectively funding a loan, said method comprising the step of providing, by a lending institution, a financial guaranty to an insurance company as a first loss protection for the loan as an enticement to the insurance company to insure the loan.
A method of cost effectively funding a loan, said method comprising the steps, by a lending institution, of:
- (a) providing a computer connectable to a network and having a processor operable in connection with software for:
- receiving information from a borrower for a loan request;
- determining a credit risk of the borrower from the information received;
- approving or rejecting the loan request based on the determined credit risk;
- (b) transferring the loan to an entity that issues a note to obtain funding for the loan, the note being insured by another entity;
- and
- (c) providing a financial guaranty to the another entity for the note.
Dependencies are inferred from the claim text.