Patent ID: 8489503
Filing Date: 2013-07-16
Classification: G06Q

Abstract:
1. A method comprising: calculating, by the computer-based system for determining loan terms, a weighted expected probability of default for a loan to a customer based at least in part upon weighting a first expected probability of default and a second expected probability of default, wherein each the first expected probability and the second expected probability are based on a customer credit application data and credit bureau data; calculating, by the computer-based system, a risk from debt burden of the customer based at least in part upon a volatility of income determined from government statistics on aggregate income movements of a population; calculating, by the computer-based system, a risk free rate; and determining, by the computer-based system, loan terms that are above the risk free rate, wherein said loan terms are based at least in part upon the weighted expected probability of default, a capital structure of a lender, and funding rates available to the lender.