Patent ID: 7702580
Filing Date: 2010-04-20
Classification: G06Q

Abstract:
1. A computer hardware system comprising: a processing unit; and a storage device coupled to the processing unit and having physically-embodied computer program elements, the computer program elements being executed by the processor implementing a process for optimizing a service fee for each loan in a group of loans, the process comprising: setting a target average servicing fee for the group of loans and storing the target average servicing fee in a database; setting, for each loan in the group of loans, a minimum servicing fee and a maximum servicing fee and storing the minimum servicing fee and the maximum servicing fee in a database; determining for each loan the marginal net benefit to the lender for a change to the servicing fee based upon the stored minimum servicing fee; determining unpaid principal balance points for the group of loans, the unpaid principal balance points are determined from total unpaid principal balance of the group of loans multiplied by the difference between the average service fee and the minimum servicing fee; and iteratively adjusting the servicing fee by: determining a weighted average servicing fee for the group of loans, the weighted average servicing fee comprising the average of the sum of an interim servicing fee and an outstanding principal balance for each loan, identifying a loan having the largest marginal net benefit to the lender, adjusting the servicing fee by a predetermined number of basis points for the loan, recalculating the marginal net benefit to the lender for the loan using the adjusted servicing fee, reducing the unpaid principal balance points by an amount equal to the unpaid principal balance of the loan whose servicing fee was adjusted by the difference between the loan's servicing fee prior to adjustment and after adjustment, and wherein the iterative adjustment proceeds until the unpaid principal balance points are less than or equal to zero or the adjusted servicing fee for each loan in the group of loans equals the set maximum servicing fee.