Patent ID: 7512559
Filing Date: 2009-03-31
Classification: G06Q,G07B

Abstract:
1. A computer implemented method for a mortgage loan wholesaler to structure a mortgage servicing right asset to include a hedging component, comprising the steps of: (1) purchasing a mortgage loan, wherein said mortgage loan includes a principal amount and an interest rate, and wherein said mortgage loan is associated with a mortgage servicing contract with a servicer; (2) securitizing a first percentage of said principal amount of said mortgage loan into a security and selling said security to an investor; (3) retaining, by the wholesaler, a right to a second percentage of said principal amount of said mortgage loan and to any accumulated interest therein based on said interest rate, said second percentage of said principal amount being retained by the servicer and serving to hedge the value of the mortgage services right asset against early repayment of the mortgage loan; (4) recording in an electronic database, for accounting purposes, a whole-loan asset equal to said second percentage and an offsetting liability represented by said mortgage servicing contract; (5) receiving payments from the servicer equal to said first percentage of payments received by the servicer from the consumer repaying said mortgage loan; (6) passing said payments received in step (5) to said investor; and (7) calculating with a processor and storing in a computer readable storage medium one of a balance and an interest for of one of said wholesaler, investor and servicer.