Patent ID: 7996313

Claim:
A computer implemented method of structuring a supplemental interest mortgage, comprising: issuing a principal debt obligation to a borrower, wherein the principal debt obligation is issued over a communications network connected to a processor on which the principal debt obligation is calculated; wherein the principal debt obligation comprises (i) a principal loan based on a principal debt amount; and (ii) a principal interest to compensate a lender for the borrower's use of the principal debt amount; and issuing a supplemental debt obligation to the borrower based on the principal debt amount, wherein the supplemental debt obligation is issued over a communications network connected to the processor on which the supplemental debt obligation is calculated; wherein the supplemental debt obligation comprises a supplemental interest based on the principal debt amount to compensate the lender for a risk of nonpayment by the borrower; wherein the supplemental debt obligation is determined by at least one risk characteristic including at least one of a loan-to-value (LTV) ratio that exceeds a predetermined threshold value, a credit score that is below a predetermined threshold value and a Fair Isaac Credit Organization (FICO) credit score that is below a predetermined threshold value; wherein the principal debt obligation and the supplemental debt obligation are secured by a single security instrument: and wherein the supplemental interest mortgage is structured without borrower-paid mortgage insurance.