Multi-pool loan security mechanism
AssigneeAmerican Student Financial Group, Inc.
InventorsTimothy Duoos, Edward Adams
Life of this patent
Estimating the term…
Abstract
A multi-pool method of providing loans is performed by receiving a batch of loan applications from a lending entity. Selected loan applications are identified for a first pool and a second pool. The first pool consists of loan applications from borrowers with a better credit rating than the credit rating of borrowers corresponding to the loan applications in the second pool. Loans from the first pool may be purchased. A third pool of funds is formed in exchange for purchasing (by a third party) other selected loans. This third pool may be formed for the benefit of the lending entity, such as a school. Funds from the third pool may be used to offset defaulted loans in the first pool.
Claims23
A method comprising:
- separating loans from a lending entity into a first pool and a second pool, wherein the first pool comprises loans to borrowers with a better credit rating than the credit rating of borrowers corresponding to the loans in the second pool;
- forming a third pool of funds as a function of the second pool;
- and
- using funds from the third pool upon default of loans in the first pool.
A method comprising:
- receiving a batch of gap student loan applications from a school;
- identifying selected gap student loan applications for a first pool and a second pool, wherein the first pool comprises loan applications from students with a better credit rating than the credit rating of students corresponding to the loan applications in the second pool;
- purchasing loans made from the first pool of gap student loan applications;
- forming a third pool of funds in exchange for purchasing select student loans;
- and
- using funds from the third pool upon default of gap student loans in the first pool.
A system comprising:
- means for receiving a batch of gap student loan applications from a school;
- means for identifying selected gap student loan applications for a first pool and a second pool, wherein the first pool comprises loan applications from students with a better credit rating than the credit rating of students corresponding to the loan applications in the second pool;
- means for purchasing loans made from the first pool of gap student loan applications;
- means for forming a third pool of funds in exchange for purchasing select student loans;
- and
- means for using funds from the third pool upon default of gap student loans in the first pool.
A method comprising:
- separating gap student loans into a first pool and a second pool, wherein the first pool comprises loans to students with a better credit rating than the credit rating of students corresponding to the gap student loans in the second pool;
- and
- receiving funds from a third pool, formed by a third party in exchange for purchasing corresponding guaranteed loans, upon default of gap student loans in the first pool.
Dependencies are inferred from the claim text.