Patent ID: 8290846

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 to generate the catastrophic hazard protection mortgage, including: using the processor to determine a set of terms for a catastrophic hazard protection mortgage based upon a set of mortgage application data and a 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, the catastrophic hazard protection clause including 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; and after an enactment of the catastrophic hazard protection mortgage: applying a first portion of a mortgage payment toward the principal balance; applying a second portion of the mortgage payment toward a base interest amount, the base interest amount corresponding to the base interest rate; applying a third portion of the mortgage payment toward a hazard interest amount, the hazard interest amount corresponding to the incremental hazard interest rate; and allocating the first, the second and the third portions of the mortgage payment to one or more respective business entities.