Patent ID: 7958034

Claim:
A method of electronically providing a catastrophic hazard protection mortgage on a real property of an owner, comprising: storing a computer program on a machine-accessible storage medium of at least one computing device; and executing the computer program by a processor of the at least one computing device, including: electronically creating an owner account associated with the owner and the real property, the real property being at least one of a residential real property or a commercial real property; electronically receiving a set of mortgage application data associated with the owner, including electronically receiving at least one of owner financial data, a loan amount, a loan period, or a loan type; associating the set of mortgage application data with the owner account; obtaining a set of catastrophe hazard risk data for a structure of the real property, including electronically obtaining at least one of a structure type, a structure replacement cost, a structure address, a structure year built, a structure square footage, a structure construction type, a building cost inflation index, or a measure of owner risk retention in loss scenarios; obtaining a catastrophe hazard risk cost of the real property; associating the catastrophe hazard risk data and the catastrophe hazard risk cost with the owner account; using the processor to determine a set of terms for the catastrophic hazard protection mortgage based upon the set of mortgage application data and the catastrophe hazard risk cost, the set of terms including at least a principal balance, a base interest rate, an incremental hazard interest rate corresponding to the catastrophe hazard risk cost, an amortization period, and a catastrophic hazard protection clause, wherein the catastrophic hazard protection clause includes an agreement to provide the owner with a reduction in the principal balance if a catastrophic hazard occurs resulting in damage to the real property during a lifetime of the catastrophic hazard protection mortgage; associating the set of terms with the owner account; associating an electronic approval notification with the owner account; electronically providing the set of terms for owner review; electronically receiving an owner agreement indicating that the owner agreed to the set of terms; associating the owner agreement with the owner account; enacting the catastrophic hazard protection mortgage in accordance with the set of terms; applying a first portion of at least one payment toward the principle balance; applying a second portion of the at least one payment toward a base interest amount, the base interest amount corresponding to the base interest rate; applying a third portion of the at least one payment toward a hazard interest amount, the hazard interest amount corresponding to the incremental hazard interest rate; and allocating the second and the third portions of the at least one payment to a bank, a mortgage lender, an insurance company, a mortgage licensee, one or more business entities, or a combination thereof.