Abstract:
Systems, methods, and machine-interpretable programming or other instruction products for guarantor mortgages. In particular, the disclosure provides methods, apparatus, and programming product for the processing of improved transfer of monetary value through innovative loan processes.

Description:
TECHNICAL FIELD 
       [0001]    In various aspects the present disclosure relates to both processes and systems configured for the transfer of wealth via specialized mortgage loan arrangements. Such transfer may be accomplished by any suitable means, but is most effectively and efficiently accomplished by secure transfer of data representing discrete amounts of currency via specialized signal and/or data processing and communications systems. 
         [0002]    Aspects of the material disclosed in this application relate to the holding, transfer, and/or administration of currencies and other forms of wealth, and specialized signal and/or data processing and communications systems for doing so. Aspects of such holding, transfer, and/or administration may be subject to regulation by governmental and other agencies. The disclosure herein is made solely in terms of logical, economic, and communications possibilities, without regard to statutory, regulatory, or other legal considerations. Nothing herein is intended as a statement or representation that any system, method or process proposed or discussed herein, or the use thereof, does or does not comply with any statute, law, regulation, or other legal requirement in any jurisdiction; nor should it be taken or construed as doing so. 
       SUMMARY OF THE INVENTION 
       [0003]    In various aspects, the disclosure provides methods, apparatus, and programming product for the processing of improved transfer of monetary value through innovative loan processes. 
         [0004]    In accordance with an embodiment of the invention, a computer-implemented method performed by at least one data processor, for executing machine-interpretable instructions for a guarantor mortgage, the method comprising:
   receiving one or more data sets providing borrower information relevant to a request for a mortgage loan;   receiving one or more data sets providing information about one or more collateral amounts to be provided by one or more guarantors as collateral in connection with the request for a mortgage loan, wherein the collateral is supported by one or more assets;   processing instructions for execution of at least a portion of a data process executable by one or more networked computing resources, the data process including calculation of one or more mortgage interest rates for a guarantor mortgage based upon the one or more data sets providing borrower information and the one or more data sets providing information about the one or more assets to be provided as collateral;   generating signals for providing the one or more mortgage interest rates to the one or more borrowers and to the one or more guarantors;   receiving from the one or more borrowers and the one or more guarantors computer signals representing a selection of a particular mortgage interest rate; and   processing instructions for establishing, on a lender computer system, one or more data parameters representing a guarantor mortgage based on (i) the selected mortgage interest rate, (ii) the one or more data sets providing borrower information, and (iii) the one or more data sets providing information about one or more assets to be provided as collateral.   
 
         [0011]    In accordance with an embodiment of the invention, the method may further comprise establishing one or more pre-determined conditions for the full or partial release of the collateral. 
         [0012]    In accordance with an embodiment of the invention, the method may further comprise generating periodically or receiving periodically at least one of information regarding the repayment of the guarantor mortgage, and information regarding the value of one or more assets associated with the guarantor mortgage relative to an outstanding mortgage loan amount; and based on the at least one of the information regarding the repayment of the guarantor mortgage and the information regarding the value of one or more assets associated with the guarantor mortgage relative to an outstanding mortgage loan amount, when the one or more pre-determined conditions for the full or partial release of the collateral are satisfied, applying one or more rules to the guarantor mortgage for the full or the partial release of the collateral. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0013]    The invention is illustrated in the figures of the accompanying drawings, which are meant to be exemplary and not limiting, and in which like references are intended to refer to like or corresponding parts. 
           [0014]      FIG. 1 , according to some aspects of the invention, is a schematic diagram illustrating basic aspects of a system that may be suitable for implementation of various aspects of the disclosure. 
           [0015]      FIG. 2 , according to some embodiments of the invention, is a schematic diagram showing the lender(s) system(s) in more detail. 
           [0016]      FIG. 3 , according to some embodiments of the invention, provides a sample flowchart of a process to obtain a guarantor mortgage. 
           [0017]      FIG. 3B , according to some embodiments of the invention, provides a sample flowchart of a process to obtain a guarantor mortgage and to monitor the guarantor mortgage as collateral is released. 
           [0018]      FIG. 4 , according to some embodiments of the invention, provides a sample flowchart of a process to provide payouts of the collateral. 
           [0019]      FIG. 5 , according to some embodiments of the invention, provides a sample flowchart of a process to release collateral at collateral maturity. 
           [0020]      FIG. 6 , according to some embodiments of the invention, illustrates an example mortgage situation where the value of the mortgage is $260,000, the borrower provides a down payment of 5% of the value of the mortgage and the guarantor provides collateral valued at 15% of the value of the mortgage. In this example mortgage situation, the collateral is placed into guaranteed investment certificates (GICs). 
           [0021]      FIG. 7 , according to some embodiments of the invention, illustrates an example mortgage amortization schedule for an average first home by plotting the mortgage balance against time (measured in years). 
           [0022]      FIG. 8 , according to some embodiments of the invention, illustrates an example mortgage model where, in contrast to a standard high LOAN-TO-VALUE ratio mortgage, the guarantor(s) provides enough of a deposit such that mortgage insurance premiums are unnecessary. 
           [0023]      FIG. 9 , according to some embodiments of the invention, illustrates an example mortgage situation where the value of the mortgage is $260,000, the borrower(s) provides no down payment, and the guarantor(s) provides 20% of the value of the mortgage in collateral(s). 
           [0024]      FIG. 10 , according to some embodiments of the invention, illustrates an example mortgage model where, in contrast to a standard high LOAN-TO-VALUE ratio mortgage, a guarantor(s) lends funds to the borrower(s) whereby the bank manages the repayment of the loan to the guarantor(s) over time. 
           [0025]      FIG. 11 , according to some embodiments of the invention, illustrates an example mortgage situation where the value of the mortgage is $260,000, the borrower(s) provides a down payment of 20% of the value of the mortgage, wherein the down payment is provided to the borrower by a down payment lender(s). 
           [0026]      FIG. 12 , according to some embodiments of the invention, provides potential variations on the mortgage models, including but not limited to, percentages that will be put up as collateral, types of account collateral may be held in, types of collateral(s) that may be used, interest rates/incentives paid to guarantors or individual lenders, characteristics of collateral repayment (frequency, time, amount), characteristics of potential guarantors or lenders, and the number of guarantors/lenders that may participate. 
           [0027]      FIG. 13 , according to some embodiments of the invention, provides a sample flowchart illustrating a collateral management system. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0028]    Various embodiments of methods, systems, and apparatus according to the invention are described through reference to the drawings. 
         [0029]    A guarantor mortgage is a device used to guarantee a loan, whereby a party external to the borrower and the lender provides additional collateral to guarantee the loan. 
         [0030]    Variants of guarantor mortgages are also contemplated by this disclosure. As a non-limiting example, a third-party lender may loan funds directly to a borrower to use as a down payment, and this third-party lender may wish to be have the loan repaid as part of, or in addition to, the monthly mortgage payment periods during the period at which the loan will be active. 
         [0031]    In a simple, non-limiting example, a mother may wish to act as a guarantor for her son&#39;s mortgage for his first home purchase. In this simple non-limiting example, the mother would then be liable for some or all of the outstanding value of the mortgage incurred by her son, in the event that her son fails to make payments to the bank. In certain situations, lenders have taken security interests over collateral provided by guarantors; the collateral being available to be lender in the event that the lender must foreclose or otherwise terminate the loan for non-payment, default, or a variety of other reasons. 
         [0032]    In some embodiments of the invention, processes, methods and systems are provided to implement guarantor mortgages. 
         [0033]    Referring now to  FIG. 1 , a schematic diagram illustrating basic aspects of a system that may be suitable for implementation of various aspects of the disclosure. 
         [0034]      FIG. 1  provides a very simple implementation of a system  100 , according to some embodiments of the invention. Those skilled in the relevant arts may understand that the system  100  may be implemented with non-technological means, or, with special advantage on suitably-configured signal and/or other data processing systems. To facilitate present discussion, a simplified embodiment of a credit and investment deposit or other system  100  suitable for use in implementing wealth transfer processes is shown in  FIG. 1 . 
         [0035]    The system  100  comprises one or more lender systems  102 , one or more borrowers  106 , one or more guarantors  104  and one or more insurer systems  108 . The one or more borrowers  106  may access the one or more lender systems  102  through link  110 . The one or more guarantors  104  may access the one or more lender systems  102  through link  112 . 
         [0036]    The one or more insurer systems  108  may not be present in some embodiments of the invention. For example, in jurisdictions where there is no mandatory mortgage insurance required, the one or more lenders may be able to lend directly to the one or more borrowers without the inclusion of the one or more insurers as long as adequate security/collateral against the mortgage is provided. 
         [0037]    The one or more lender systems  102  may include, for example, institutions which operate to lend money to the one or more borrowers  106 , the borrowing possibly guaranteed by the one or more guarantors  104 . The one or more lender systems  102  may be connected to insurer systems  108 , through link  114 . In some embodiments of the invention, the one or more lender systems  102  may include systems operated by banks, credit unions, or any type of financial company. 
         [0038]    The one or more borrowers  106 , in some embodiments of the invention, may include individuals, organizations, or corporations seeking to borrow money to finance purchases. For example, the one or more borrowers  106  may include a young couple seeking to finance their purchase of their first home through a bank. 
         [0039]    The one or more guarantors  104 , in some embodiments of the invention, may include individuals, organizations, or corporations seeking to guarantee the loan of one or more borrowers  106 . The guarantee may be in part or in full, and the one or more guarantors  104  may provide collateral to support the one or more borrowers  106 . For example, the one or more guarantors  104  may include a father partially guaranteeing the mortgage taken by his young son and wife by providing $50,000 as collateral to the bank. The one or more guarantors  104  may also, in alternate embodiments of the invention, include third parties that lend money directly to the one or more borrowers  106  to provide money for an enhanced down payment on a home. For example, a third party lender may provide the young couple $50,000 for the young couple to provide as a down payment for their mortgage. 
         [0040]    The one or more guarantors  104  may also include third parties who do not post collateral to the one or more lenders, but rather, provide a loan to the one or more borrowers  106  directly so that the one or more borrowers  106  may provide an enhanced down payment. 
         [0041]    The duration of the guarantor&#39;s obligation may not necessarily be tied to the duration of the mortgage. For example, the mortgage may be structured in such a way that the one or more guarantor&#39;s collateral is released upon achieving a pre-determined condition by the one or more borrowers  106 , such as a specific loan-to-value ratio. 
         [0042]    The one or more insurer systems  108 , in some embodiments of the invention, may include systems operated by organizations seeking to provide mortgage insurance to the one or more lenders. The one or more lenders may pay mortgage insurance premiums to the one or more insurance organizations, and in the event of a default on the mortgage, the one or more insurance organizations may be required to provide financial compensation to the one or more lenders. In certain jurisdictions, such as Canada, mortgage insurance is mandatory on loans beyond a certain loan-to-value ratio, and raises the overall cost of borrowing for the one or more borrowers  106 . 
         [0043]    The link  110  between the one or more lender systems  102  and the one or more borrowers  106  may be comprised of a variety of different means, technological and non-technological. For example, in some embodiments of the invention, the one or more borrowers  106  may be able to interact directly with a customer service agent operating as part of the one or more lender systems  102 . In other embodiments of the invention, the one or more borrowers  106  or the customer service agent may be able to interact through a graphical user interface (GUI) as part of the one or more lender systems  102 . In yet other embodiments of the invention, the one or more borrowers  106  may be able to interact with the one or more lender systems  102  through a web interface, an application programmable interface (API), electronic mail or similar technological communication means. 
         [0044]    Similarly, the link  112  between the one or more lender systems  102  and the one or more guarantors  104  may be comprised of a variety of different means, technological and non-technological. For example, in some embodiments of the invention, the one or more guarantors  104  may be able to interact directly with a customer service agent operating as part of the one or more lender systems  102 . In other embodiments of the invention, the one or more guarantors  104  or the customer service agent may be able to interact through a graphical user interface (GUI) as part of the one or more lender systems  102 . In yet other embodiments of the invention, the one or more guarantors  104  may be able to interact with the one or more lender systems  102  through a web interface, an application programmable interface (API), electronic mail or similar technological communication means. 
         [0045]    The links  110  and  112  may be one and the same, or separate, depending on the embodiment of the invention. For example, it may be advantageous to have communications between the one or more lender systems  102  and the one or more guarantors  104  separate from the communications between the one or more lender systems  102  and the one or more borrowers  106 . For example, the one or more guarantors  104  may have different interests than the one or more borrowers  106 , and separate interfaces may better facilitate their decision making processes. 
         [0046]    The link  114  between the one or more lender systems  102  and the one or more insurer systems  108  may be comprised of a variety of different means, technological and non-technological. For example, in some embodiments of the invention, the one or more insurer systems  108  may be able to interact directly with a customer service agent operating as part of the one or more lender systems  102 . In other embodiments of the invention, the one or more insurer systems  108  or the customer service agent may be able to interact through a graphical user interface (GUI) as part of the one or more lender systems  102 . In yet other embodiments of the invention, the one or more insurer systems  108  may be able to interact with the one or more lender systems  102  through a web interface, an application programmable interface (API), electronic mail or similar technological communication means. 
         [0047]    An advantage of utilizing a set of APIs or GUIs is the ability to obtain real or near-real time insurance premiums or quotes and prices on the one or more guarantors&#39; collateral. As noted in example described above, it is potentially advantageous to some parties involved to utilize current information in making decisions, as the decisions may be more readily responsive to changes in pricing or in the market. 
         [0048]    Potential advantages to implementing guarantor loans include reducing or eliminating mortgage premiums payable throughout the course of the mortgage, as the amount of risk taken on by a lender is a significant factor in determining mortgage premiums. 
         [0049]    Further, the collateral provided by the one or more guarantors  106  may further reduce the need for the one or more lenders to obtain mortgage insurance to insure the mortgage against default. This reduced need for obtaining mortgage insurance may result in lower mortgage payments for the one or more borrowers  104 . 
         [0050]    In certain jurisdictions, government rules may require the mandatory purchase of mortgage insurance for mortgages whose loan-to-value (LOAN-TO-VALUE) ratios are above a certain percentage. For example, in Canada, the one or more lenders may not lend the one or more borrowers  106  a sum of money greater than 80% of the value of a residential property unless the mortgage is insured against default. In this example, the one or more borrowers  106  will, as a result, pay for this insurance through higher mortgage premiums. 
         [0051]    The posting of collateral by the one or more guarantors  104 , may, individually or in conjunction with the down payment provided by the one or more borrowers  106 , provide enough equity, such that the loan-to-value ratio is improved. An improved loan-to-value ratio may result in a reduction or the elimination of mortgage insurance premiums. Further, the increased equity may enable the one or more borrowers  106  to purchase an asset that the one or more borrowers  106  would otherwise not be able to financially afford to purchase. 
         [0052]    Collateral provided by the one or more guarantors  104  may be of any type or form, and of any value suitable for use in implementing the processes and objectives described herein, including, for example, to reduce both risk to, or exposure of, one or more of lender, in case of default or other failure in a loan process. For example, collateral provided by the one or more guarantors  104  may include, but is not limited to, cash, stocks, bonds, insurance policies, equity in properties, or any other types of assets. 
         [0053]    The collateral from the one or more guarantors  106  posted to the one or more lenders may be held in various accounts, for example, and not limited to, GICs, high interest savings accounts, registered accounts or investment accounts. 
         [0054]    The disclosure herein provides improvements to devices and processes useful in the implementation of guarantor loans, including especially aspects involving the transfer of wealth in any forms, and in such loans themselves. 
         [0055]    In some embodiments of the invention, collateral provided by the one or more guarantors  104  may be held until one or more specified conditions are satisfied, and then returned to the guarantors  104 . Such conditions may, for example, include passage of a period or periods of time; lender metrics (such as risk metrics, forecasting models, decision processes, location and other property attributes, third party predictive models), repayment of specified amount(s) of loaned capital, and/or interest accrued thereon; and/or change to of one or more ratios of repaid principal (sometimes referred to as ‘equity’) to total and/or unpaid loan balance(s), including, for example, various forms of loan-to-value (LOAN-TO-VALUE) ratios. In some embodiments, returned collateral may include interest and/or other benefits paid and/or otherwise provided by the one or more lenders and/or others during the period when the collateral was held by the one or more lenders, for example directly and/or through any lender&#39;s&#39; agents. 
         [0056]    A potential advantage of applying different conditions for satisfaction is the ability for the one or more lenders to manage risk. For example, it may be found that the risk of default decreases substantially after 5 years, and the one or more lenders may wish to postpone any collateral releases until after this period has elapsed. 
         [0057]    In some embodiments of the invention, the one or more guarantors  104  may be held liable to the one or more lenders only, for example, to the limit of any collateral provided by the one or more guarantors  104 , and/or only until such time as such collateral has been released back to the guarantor(s) and/or until conditions such as those described above for such release have been satisfied. 
         [0058]    In some embodiments of the invention, the reliability, efficiency, and effectiveness of payment, monitoring, administrative, and other processes can be improved significantly through the use of suitably configured signal and/or data processing systems, as discussed below. 
         [0059]    In some embodiments of the invention, one or more mortgage insurers may be assigned a first right to collateral in the event of any default, or pre-defined type(s) of default. 
         [0060]    The system  100  may be implemented, for example, in the form of local and/or wide-area networked signal communication systems, using infrastructure available through communication systems such as the internet and one or more suitably-configured local and/or wide-area networks. 
         [0061]    Signals suitable for interpretation by the various systems  102  and  108  may be communicated therebetween, and can represent forms or other data set(s) suitable for use in loan application, implementation, and administration processes, through the use of, for example, suitably-configured interactive graphical user interfaces (GUIs) adapted to elicit and read input of necessary and/or otherwise desired input parameters, such as any suitably-configured identification (ID) information associated with any one or more individuals or groups of lender(s), guarantor(s), borrower(s), insurer(s); loan, payment; interest, collateral, and other amount(s), represented in any suitable currencies or other financial media; and applicable LOAN-TO-VALUE ratios, thresholds, etc., as will apparent throughout the following. 
         [0062]    In some embodiments of the invention, communications between each of the systems may be conducted through the use of application programming interfaces (APIs), established for communications between various systems. 
         [0063]    For example, the one or more lender systems  102  may communicate with the one or more third-party insurer systems  108  such that information could be dynamically pulled from the one or more third-party insurer systems  108 . 
         [0064]    In accordance with this example, one or more lender systems  102  may wish to query one or more insurer systems  108  to determine mortgage insurance premiums associated with different amounts of collateral posted either by the one or more borrowers or the one or more guarantors, individually or in conjunction for a mortgage that will amortize in 25-years. The third party insurer system  108  may then for example provide a rate of 2.00% for loan-to-value ratios of 85.01%-90%, and a rate of 2.75% for loan-to-value values of 90.01%-95%. The one or more borrowers and the one or more guarantors may then utilize this information to aid in their decisions of whether to take out a mortgage, and/or how much collateral they should provide to the lender in connection with a borrower&#39;s mortgage request. 
         [0065]    The one or more lender systems  102  may generate suitably-configured loan data sets, comprising for example each of the unique data items described above, and storing them in suitable electronic form, including for example in secure persistent or non-volatile memory associated with and accessible by the one or more lenders. Some or all of such data may be accessible by any authorized parties, including for example administrators or other individuals associated with the one or more lenders, the one or more borrowers  106 , the one or more guarantors  104 , and one or more insurers. 
         [0066]    Referring now to  FIG. 2 , a schematic diagram illustrating the one or more lender systems  102  in more detail, according to some embodiments of the invention. This example of the one or more lender systems  102  is provided as a non-limiting example, a skilled reader would understand that other embodiments exist that may or may not include all elements provided in  FIG. 2 , or may perhaps include other elements not provided in  FIG. 2 . 
         [0067]    The one or more lender systems  102  may comprise an account manager system  202 , an account value updater system  208 , a guarantor update system  214 , a collateral management system  216 , a mortgage interest rate/insurance premium calculator  212 , and a mortgage insurance system  210 . 
         [0068]    The account manager system  202  may administer one or more collateral accounts  204 , as well as one or more mortgage accounts  206 . The account manager system  202  may debit or credit the accounts accordingly, as time progresses and various events occur related to the mortgage. 
         [0069]    The one or more collateral accounts  204  may hold the value of the collateral provided to the one or more lenders. The value in held collateral accounts may be fixed, variable, increasing or decreasing over time, according to various embodiments of the invention. For example, the one or more collateral accounts  204  may increase in value if the collateral is held in appreciating or interest-bearing assets. In some embodiments, the one or more collateral accounts  204  may dynamically decrease in value if the mortgage is structured in such a way that collateral is released upon certain conditions being met. 
         [0070]    The one or more mortgage accounts  206  may hold the value of the outstanding mortgage, including principal and outstanding interest. 
         [0071]    The account value updater system  208  is configured to update the account manager system  202  depending on the present state of the mortgage. The account value updater system  208  may also keep track of the conditions at which the collateral may be released to the one or more guarantors  104  or a pay out is required to be made to the one or more guarantors  104 . For example, a pay out may be triggered after the mortgage has a loan-to-value ratio of 75%. 
         [0072]    The account value updater system  208 , in some embodiments of the invention, is configured to be able to keep track of the present state of the mortgage where the mortgagor makes accelerated or lump-sum payments. The accelerated or lump-sum payments to the one or more lenders may trigger a condition requiring a full or partial release of collateral, or a payment to be made to the one or more guarantors  104 . 
         [0073]    The mortgage interest rate/insurance premium calculator  212  is configured to calculate and provide options for mortgages with various combinations of collateral amounts, downpayment values, amortization periods, mortgage types, mortgage options (such as acceleration, variable and fixed interest rates, etc.) and other loan characteristics. The mortgage interest rate/insurance premium calculator  212  may be linked to the mortgage insurance system  210 . The mortgage insurance system  210  may be linked to the one or more insurer systems  108  through link  114 . 
         [0074]    The mortgage interest rate/insurance premium calculator  212  may interface with the one or more guarantors  104  through the link  110  and with the one or more borrowers  106  through the link  112 . This interface may be provided through various technological and non-technological means. Non-limiting examples of non-technological means may include through the interaction of customer service agents. Non-limiting examples of technological means may include the use of GUIs and APIs to improve the efficacy and the functionality of the process. 
         [0075]    The mortgage interest rate/insurance premium calculator  212  may, in some embodiments of the invention, first require an number of inputs from the one or more guarantors  104  and the one or more borrowers  106 , and then provide a number of options by calculating, through applying a set of rules, a set of mortgage rates given various characteristics of different potential mortgages. As an illustrative, non-limiting example of the use of the mortgage interest rate/insurance premium calculator  212 , a guarantor and a borrower may provide their information and request quotes for a mortgage to purchase an asset worth $260,000. The guarantor and borrower, in this example, may wish to explore their options and they input ranges of collateral and down payments, and amortization schedules that they would consider providing the lender. The mortgage interest rate/insurance premium calculator  212 , connects with the mortgage insurance system  210 , if necessary, analyzes the information by applying a set of rules established by the lender and provides a table listing or other data representation of potential mortgage insurance premiums based upon different combinations of collateral, amortization schedules and down payment. Upon selection of a mortgage, the system  100  may then implement a mortgage with the specified characteristics. 
         [0076]    Using suitably-configured machine-executable instructions, the one or more lenders and/or any authorized agents can thereafter implement the loans by writing or otherwise providing to suitably-configured borrower accounts any signals required to advance the funds, and at desired times, transfer funds for instalment or other payments from such borrower accounts to designated lender accounts, in repayment. Signals suitable for effecting and recording transfer of insurance payments can be generated and written to the one or more insurers  108  or other parties, and at suitable times signals representing return or collateral to the one or more guarantors  104  can be generated and written to suitable communications addresses; and loan and other data sets can be updated as appropriate. Such processes and data records can be fully or semi-automatically generated and otherwise processed. 
         [0077]    In any such embodiments the one or more lenders may be authorized to make, and may thereafter manage, repayment of the collaterals directly to the one or more guarantors  104  or the one or more borrowers  106  over time, as for example using all or any desired or otherwise suitable portion of repaid principal subsequent to each instalment of an instalment loan. Such repayment of collateral may advantageously be implemented by the one or more lender systems  102  on an automatic or semi-automatic basis, using suitably configured repayment rate tables and/or associated computer system routines or algorithms embodied therein. 
         [0078]    For example, a bank can manage repayment of a collateral to the co-borrower(s) over time. When the primary borrower(s) make a periodic, e.g., monthly, payment on an instalment loan, included in the payment can be a whole or partial repayment of such down payment to the “guarantor(s).” All or some portion of such scheduled payments can be applied to reduce both the outstanding principal amount(s), and therefore any mortgaged amount(s), in accordance with a designated amortization schedule; and simultaneously or alternatively can release the collateral in accordance with the same or another amortization schedule. 
         [0079]    The mortgage insurance system  210  can submit requests for quotes from the one or more insurer systems  108 . These requests may provide information on the characteristics of proposed mortgages, which may include, but are not limited to, the name(s) of the one or more borrowers  106 , the name(s) of the one or more guarantors  104 , the name(s) of the one or more lenders, the mortgage value, the amount of down payment, the amount of collateral, whether the mortgage insurer will have the first right at seizing the collateral, and any other information that may be relevant. The quotes returned from the one or more insurer systems  108  may include, but are not limited to, specific mortgage insurance premiums for the options suggested, or a data set comprised of a set of mortgage insurance premium rates associated with different characteristics of potential mortgages. 
         [0080]    In some embodiments of the invention, the mortgage insurance system  210  receives real or near-real time data feeds from the one or more insurer systems  108  and uses this information to provide the mortgage interest rate/insurance premium calculator  212  updated mortgage insurance premium data sets. 
         [0081]    In some embodiments of the invention, the mortgage insurance system  210  receives time-limited quotes from the one or more insurer systems  108 . In these time-limited quotes, the quotes may only be valid for acceptance within a particular duration of time. 
         [0082]    The guarantor update system  214  may be configured to provide the one or more guarantors  104  updates regarding the state of obligations related to the mortgage. The updates may be periodic, upon request, and/or upon the occurrence of a particular event. In a non-limiting example, the one or more guarantors may wish that an update is provided every six months, and also upon any event which may impact his/her obligations regarding his/her collateral. In this example, the one or more guarantors may be providing with an update in the event of a potential default event, or if the loan-to-value condition has been met and the collateral may be released. The updates may be provided through technological or non-technological means, including but not limited to, email, telephone calls, letter mail, etc. The contents of the updates may provide various information related to the mortgage, such as, but not limited to, the duration of the mortgage, the current loan-to-value of the mortgage, the current value of the asset, the current value of equity, any acts of default, etc. The availability of such a notification service where the guarantor may monitor the progress of the release of the collateral that they have provided over time, can motivate the guarantor to provide the collateral amount, or to provide a larger collateral amount. 
         [0083]    The collateral management system  216  may be configured to monitor collateral data and mortgage data from the guarantor mortgage to review the value of the collateral at various points in time during the duration of the guarantor mortgage. The collateral management system  216  may be further configured to provide updates to the account value updater  208 . 
         [0084]    According to some aspects of the invention, the collateral management system  216  may monitor on a periodic basis, or upon the triggering of an event, to review the value of the assets, including, but not limited to, reviewing whether the value of the assets has been impaired (if the value of the assets fluctuate) or if there have been any unauthorized withdrawals from the account. 
         [0085]    According to some aspects of the invention, a collateral report may be generated to provide information related to the guarantor mortgage. This information may include, but is not limited to, the current loan-to-value of the mortgage, whether any default events have occurred, the eligibility of collateral for release and the value of collateral if it is held in an investment, the current status of the collateral (e.g. a security interest is still in force and not released). 
         [0086]    This collateral report may be provided to a variety of different parties, such as, but not limited to, the one or more borrowers  106 , the one or more guarantors  104 , and the one or more mortgage insurers  108 . In some aspects of the invention, the collateral report is automatically and periodically sent to the mortgage insurers through electronic means. 
         [0087]    Referring now to  FIG. 3 , a sample flowchart of a process to obtain a guarantor mortgage is provided, according to some embodiments of the invention.  FIG. 3  provides, for illustrative purposes, a non-limiting, simplified example of a process to establish a guarantor mortgage. 
         [0088]    At step  302 , the one or more borrowers  106  may provide information as to the mortgage desired, the type of asset being purchased by the mortgage, the amount of down payment, the desired amortization periods, the borrower&#39;s credit history, or any other information that may be relevant in the obtaining of a mortgage. 
         [0089]    At step  304 , the one or more guarantors  104  may provide information as to the amount of collateral to be provided, the type(s) of collateral to be provided, the guarantor&#39;s desired period of obligation (e.g. collateral maturity), how the guarantor wishes to be repaid the collateral (e.g. periodic pay outs, lump sum at collateral maturity), the types of assets that the lender should hold the collateral in (e.g. a collateral value of $50,000 is placed into GICs), the types of updates the one or more guarantors  104  wishes to receive or any other information that may be relevant in the obtaining of a mortgage. 
         [0090]    At step  306 , if applicable, mortgage insurance premium rates are requested from the one or more insurers  108 . As noted above, these mortgage insurance premium rates may be mandatory depending on the particular characteristics of the desired mortgage. In a non-limiting example, a mortgage with a loan-to-value of 95% may require a mortgage insurance premium of 2.0%. The mortgage insurance premiums may fluctuate over time. 
         [0091]    At step  308 , mortgage interest rates are calculated for a number of options for mortgages with various characteristics. These interest rates are calculated by the one or more lender systems  102  through the application of rules to the particular data sets in conjunction with information captured by the one or more lender systems  102  in steps  302 ,  304  and  306 . 
         [0092]    At step  310 , the various options are provided to the one or more borrowers  106  and the one or more guarantors  104 . The one or more borrowers  106  and the one or more guarantors  104  may choose to accept or reject the options provided to them. 
         [0093]    According to some embodiments, there may be additional decision support features provided to help the one or more guarantors  104  and/or the one or more borrowers  106  select a guarantor mortgage. For example, these decision support features may include diagrams indicating various interest rates available, the projected loan-to-value ratios over time, modelling based upon interest rates and expected value growth, etc. 
         [0094]    At step  312 , the one or more borrowers  106  and the one or more guarantors  104  accept one of the options provided to them and the one or more lender systems  102  implements a mortgage with the specified characteristics. 
         [0095]    Referring now to  FIG. 3B , a sample flowchart of a process for obtaining a guarantor mortgage and monitoring the guarantor mortgage as collateral is released, according to one aspect of the invention. While this aspect of the invention includes obtaining mortgage insurance premium information, there are aspects of the invention where it is not necessary to obtain mortgage insurance premium information. 
         [0096]    At step  314 , the one or more lender systems  102  provide information from the one or more borrowers  106  and the one or more guarantors  104  to the one or more insurer systems  108 . 
         [0097]    At step  316 , based upon the information received, the insurer systems  108  calculate one or more sets of mortgage insurance premium information. The mortgage insurance premium information may, for example, be expressed as a percentage of loan value and/or periodic mortgage insurance premium payment (the mortgage insurance premium may, in some aspects of the invention, be added on to the mortgage interest/mortgage payment amount by the lender). 
         [0098]    At step  318 , the mortgage insurance premium information is presented to the one or more borrowers  106  and/or the one or more guarantors  104  in order to inform the selection of a collateral amount, and based on this corresponding mortgage repayment information and corresponding mortgage insurance premium information. 
         [0099]    Different options may be presented to the one or more borrowers  106  and the one or more borrowers  104 . It is desirable that the one or more borrowers  106  and the one or more borrowers  104  are provided with information to support their decisions. 
         [0100]    A potential advantage of increased decision support is the increased motivation and comfort in providing collateral. For example, in one aspect of the invention, the system  100  may be configured to generate information to illustrate the release of the collateral over time, and the guarantor may be able to vary the collateral amount based on what the one or more guarantors believe the borrower can afford or should be able to afford. 
         [0101]    At step  320 , information regarding selection is submitted to the system  100 , and the entry into a mortgage insurance contract is initiated. According to some aspects of the invention, the mortgage can then be provided into a processing with investment info to flag the mortgage for collateral management. 
         [0102]    At step  322 , both mortgage repayment information and mortgage insurance premium information may be used to set up the collateral account; this may include applying a security interest to the one or more assets provided as collateral, based on the mortgage insurance contract. 
         [0103]    According to some aspects of the invention, where the collateral provided is in an account with the lender, the collateral may be registered against that account and that account may be flagged or restricted to ensure that there are no unauthorized withdrawals while the account is being held as collateral for a related guarantor mortgage. 
         [0104]    At step  324 , collateral may be locked down in part based on the mortgage insurance contract; the lender system  200  may establish a security interest in the collateral in favour of the mortgage insurer based on the applicable mortgage insurance contract. 
         [0105]    At step  326 , the security interest of the mortgage insurer may be released over a period of time (as in other cases). As a non-limiting example for illustration, the security interest may be released over a period of time as the loan-to-value ratio reaches certain milestone thresholds and after at least three years has passed. 
         [0106]    Releasing collateral may be conducted as a full release, or a partial release. In various embodiments of the invention, release collateral may, for example, include discharging one or more security interests, releasing funds to a third-party borrower, physically returning one or more assets, removing liens, unlocking locked bank accounts that is holding assets held as collateral, removing restrictions on sale, etc. 
         [0107]    Releasing collateral may also, in some embodiments, include the release or payment of any interest accrued on an asset. In these situations, the system may calculate one or more interest payments payable for the one or more assets. Further, the releasing of collateral may further include the re-investment of the assets. 
         [0108]    Referring now to  FIG. 4 , a sample flowchart of a process to partially release collateral is provided, according to some embodiments of the invention. At step  402 , the system  100  selects which mortgage accounts satisfy conditions for collateral pay out. As a non-limiting example, where collateral has been posted for a $260,000 mortgage and one or more guarantors  104  has structured his/her guarantee in such a way that collateral is incrementally released upon achieving loan-to-value milestones, when a loan-to-value milestone is reached, the condition is met for a pay out of part of collateral. Step  402  may occur periodically, or be triggered through the occurrence of an event. 
         [0109]    At step  404 , for only the accounts that are identified for a pay out are updated to determine the amount of pay out. 
         [0110]    At step  406 , the one or more guarantors  104  may receive a pay out representing the part of the collateral to be released. The value held in the collateral account is updated to reflect this change. 
         [0111]    In some embodiments of the invention, the pay out may be linked to the mortgage payments received by the one or more lenders from the one or more borrowers  106 . 
         [0112]    Referring now to  FIG. 5 , a sample flowchart of a process to release collateral upon collateral maturity is provided, according to some embodiments of the invention. At step  502 , the system  100  selects which mortgage accounts satisfy conditions for collateral maturity. As a non-limiting example, where collateral has been posted for a $260,000 mortgage and one or more guarantors  104  has structured his/her guarantee in such a way that collateral is fully released upon achieving a specific loan-to-value ratio, when that loan-to-value ratio is reached, the condition is met for the release of all the collateral as a lump sum. Step  502  may occur periodically, or be triggered through the occurrence of an event. 
         [0113]    At step  504 , for only the accounts that are identified for collateral maturity are updated to determine the amount to be paid out/released. As a non-limiting example, the collateral may be held in an interest-bearing GIC. The amount to be paid out/released may include interest in addition to the original principal amount. 
         [0114]    At step  506 , the one or more guarantors  104  may receive a pay out representing the collateral being released at collateral maturity. 
         [0115]    Referring now to  FIG. 6 ,  FIG. 6  illustrates an example mortgage situation, where the value of the mortgage is $260,000, the borrower provides a down payment of 5% of the value of the mortgage and the guarantor provides collateral valued at 15% of the value of the mortgage, according to some embodiments of the invention. In this example mortgage situation, the collateral is placed into guaranteed investment certificates (GICs) and is returned to the one or more guarantors  104  at collateral maturity, which occurs at 5 years. As indicated, at collateral maturity, the collateral now includes interest in addition to the principal amount of $39,000. 
         [0116]    Referring now to  FIG. 7 ,  FIG. 7  illustrates an example mortgage amortization schedule for an average first home by plotting the mortgage balance against time (measured in years), according to some embodiments of the invention. As illustrated in this example, the loan-to-value ratio of a mortgage may also vary depending on external factors, such as the value of the asset in the market. In this example, the home value is estimated to grow at 1% annually. 
         [0117]    Referring now to  FIG. 8 ,  FIG. 8  illustrates an example mortgage model where, in contrast to a standard high loan-to-value ratio mortgage, the guarantor(s) provides enough of a deposit such that mortgage insurance premiums are unnecessary, according to some embodiments of the invention. 
         [0118]    Referring now to  FIG. 9 ,  FIG. 9  illustrates an example mortgage situation where the value of the mortgage is $260,000, the borrower(s) provides no down payment, and the guarantor(s) provides 20% of the value of the mortgage in collateral(s), according to some embodiments of the invention. 
         [0119]    Referring now to  FIG. 10 ,  FIG. 10  according to some embodiments of the invention, illustrates an example mortgage model where, in contrast to a standard high loan-to-value ratio mortgage, the one or more guarantors  104  lends funds to the one or more borrowers  106  whereby the bank manages the repayment of the loan to the one or more guarantors  104  over time. In this example, when the one or more borrowers  106  makes their monthly mortgage payments, included in the payment will be a loan repayment (potentially including interest) to the one or more guarantors  104 . The one or more guarantors  104 , in this example, provide funds directly to one or more borrowers  106  to provide the down payment, as opposed to providing collateral to the one or more lenders. 
         [0120]    Referring now to  FIG. 11 ,  FIG. 11  illustrates an example mortgage situation where the value of the mortgage is $260,000, the borrower(s) provides a down payment of 20% of the value of the mortgage, wherein the down payment is provided to the borrower by a down payment lender(s), according to some embodiments of the invention. The one or more guarantors  104 , (“Down Payment Lenders”) in this example, provide funds directly to one or more borrowers  106  to provide the down payment, as opposed to providing collateral to the one or more lenders. 
         [0121]    Referring to  FIG. 12 ,  FIG. 12 , according to some embodiments of the invention, provides potential variations on the mortgage models, including but not limited to, percentages that will be put up as collateral, types of account collateral may be held in, types of collateral(s) that may be used, interest rates/incentives paid to guarantors or individual lenders, characteristics of collateral repayment (frequency, time, amount), characteristics of potential guarantors or lenders, and the number of guarantors/lenders that may participate. 
         [0122]    As will be appreciated by those skilled in the relevant arts, among other advantages offered by the invention is that it may be implemented, with significant advantage, in machine-executable versions such as computer-implemented processes for processing suitably-encoded signals representing instructions and data, to rapidly, accurately, and efficiently set up loans and/or automate all or any portion(s) of payment, monitoring, administration, and repayment thereof. Variables such as those described above and in  FIG. 12  may be employed in such processes by encoding machine-readable and storable signals to represent values associated with such variables in specific cases, and thereafter using them in applying suitably-coded logic rules. 
         [0123]    Referring to  FIG. 13 ,  FIG. 13  provides a sample flowchart illustrating a collateral management system  216 , according to some embodiments of the invention. In the example provided, the collateral management system  216  monitors the valuations of the mortgage loan data and the collateral data on a periodic basis. The collateral management system  216 , in this example, creates a collateral report that is generated and sent automatically to one or more mortgage insurers  108 . The example also provides for the scenario where the collateral is an investment registered on a lender&#39;s system; the investment can be restrained through locking functions to ensure that the collateral is not released without proper authorization. 
         [0124]    Data processes used in implementing such embodiments of the disclosure can use any programming or other instruction schemes (including high- and/or low-level programming languages) and data structures consistent with the purposes disclosed or suggested herein. 
         [0125]    While the disclosure has been provided and illustrated in connection with specific, presently-preferred embodiments, many variations and modifications may be made without departing from the spirit and scope of the invention(s) disclosed herein. The disclosure and invention(s) are therefore not to be limited to the exact components or details of methodology or construction set forth above. Except to the extent necessary or inherent in the processes themselves, no particular order to steps or stages of methods or processes described in this disclosure, including the Figures, is intended or implied. In many cases the order of process steps may be varied without changing the purpose, effect, or import of the methods described. The scope of the invention is to be defined solely by the appended claims, giving due consideration to the doctrine of equivalents and related doctrines.