Patent ID: 7756779

Claim:
A computer system configured to determine compliance with a delegated underwriting and servicing agreement between a mortgage seller and a mortgage purchaser relating to the sale of multifamily mortgage loans, the delegated underwriting and servicing agreement including a loss sharing provision, a servicing provision allowing the mortgage seller to retain servicing rights for the multifamily mortgage loans and a provision that the mortgage seller be adequately capitalized against risk for each multifamily mortgage loan, the system comprising: machine readable media having programmed instructions stored therein; a processor coupled to the machine readable media and operable to execute the programmed instructions, wherein the programmed instructions implement data capture logic configured to receive mortgage data regarding at least one multifamily mortgage loan in a mortgage portfolio of the mortgage seller associated with the delegated underwriting and servicing agreement and financial data regarding the mortgage portfolio; a user interface, the user interface being configured to receive a request to determine compliance of the mortgage seller and to receive mortgage seller data regarding the mortgage seller; at least one database, the at least one database being coupled to the data capture logic and user interface, the at least one database configured to store the mortgage data, financial data and mortgage seller data; and compliance logic coupled to the user interface and the at least one database, the compliance logic configured to apply a set of predefined capital standards to the mortgage data, financial data and mortgage seller data to determine compliance of the mortgage seller on an ongoing basis with the delegated underwriting and servicing agreement, during the term of the delegated underwriting and servicing agreement, the set of predefined capital standards including at least 1) a set of requirements regarding appropriate business activities of the mortgage seller, 2) a net worth requirement including a minimum net worth for the mortgage seller and a valuation of the servicing rights, 3) a set of risk-based liquidity requirements used to determine if the mortgage seller can meet obligations of the loss sharing provision and 4) a set of requirements regarding the encumbrance of the servicing rights, the compliance logic further configured to generate a compliance determination based on the application of the predefined capital standards; and wherein the set of risk-based liquidity requirements comprises a separate liquidity requirement for each of the multifamily loans in the mortgage portfolio that is determined based on risk characteristics of the respective loan, the risk characteristics including a debt service coverage ratio and loan-to-value ratio of the respective loan.