Patent ID: 7933796
Filing Date: 2011-04-26
Classification: G06Q

Abstract:
1. A system for evaluating credit risk associated with a mortgage loan, the system comprising: memory configured to store a delinquency status observation for the mortgage loan and a bankruptcy status observation for the mortgage loan, and corresponding to a first date; and a processor coupled to the memory and operable to execute programmed instructions stored in the memory, wherein the programmed instructions are configured to: determine a delinquency parameter value using the delinquency status observation for the mortgage loan and the amount of time between the first date and a second date, wherein the delinquency parameter is based on an estimate of a decrease in a predictive value of the delinquency status observation with regard to a possible adverse event associated with the mortgage loan on the second date; determine a bankruptcy parameter value using a bankruptcy status observation for the mortgage loan and the amount of time between the first date and the second date, wherein the bankruptcy parameter is based on an estimate of a decrease in the predictive value of the bankruptcy status observation with regard to the possible adverse event associated with the mortgage loan on the second date; and determine a probability of the adverse event as a function of the delinquency parameter and the bankruptcy parameter.