Home resale price protection plan
AssigneePriceLock Finance, LLC
InventorsSteven M. Menzies, Jeffrey A. Silver, Christopher W. Overton
Life of this patent
Estimating the term…
Abstract
A Home Resale Price Protection Plan provides a payment to a homeowner should the homeowner have to sell his or her house at a loss. In exchange for an upfront fee, the homeowner would receive a payment for the lesser of their actual loss or the loss calculated by multiplying their original purchase price by the proportional drop in an appropriate housing price index.
Claims15
A system for providing a Home Resale Price Protection Plan price quote to a given client who is a prospective buyer wherein said price quote comprises a fee for said Home Resale Price Protection Plan and wherein said system comprises:
- a. a Transactional System which comprises a first computer for accepting applicant information and for providing said price quote based on a pricing model;
- and
- wherein said first computer is specifically modified to calculate said fee for said Home Resale Price Protection Plan for said given client purchasing a house to be protected and wherein said specific modification comprises computer readable instructions for calculating said fee according to the relationship:
- Fee
- i
- >=
- ∫
- t
- =
- termbegin
- -
- δ
- 1
- termend
- +
- δ
- 2
-
- M
- i
-
- (
- t
- )
-
- P
- i
-
- (
- t
- )
-
- V
-
- (
- t
- )
-
-
- ⅆ
- t
- where:
- Feei is said fee to be charged for said given client i normalized by the cost of said house being protected;
- i is an index number of said given client;
- termbegin is when the coverage of said Home Resale Protection Plan begins;
- termend is when said coverage of said Home Resale Price Protection Plan ends;
- δ1 is a first end effect adjustment period;
- δ2 is a second end effect adjustment period;
- Mi(t) is a forecasted magnitude of a future claim made at time t;
- Pi(t) is a forecasted probability density function of said future claim being made at time t;
- and
- V(t) is a discount factor to give the present value of said future claim in present day dollars.
Dependencies are inferred from the claim text.