Patent ID: 8548829

Claim:
A loan guarantee insurance system in a commercial loan arrangement between a borrower and a lender, the loan guarantee insurance system comprising: a computer having a processor; and a non-transitory computer-readable medium having stored thereon computer-readable instructions, which, when executed by the processor, configured the computer to perform functions that include: receiving, from a lender, information relating to a borrower request for a loan to complete a commercial real estate project, the information includes (i) an amount of personal guarantee from the borrower, which is reduced from a minimum amount required by the lender, and (ii) a capped insured amount from the lender, which is an amount of loan to be insured less than an entire amount of the loan, the capped insured amount together with the amount of personal guarantee from the borrower meets the required minimum amount; obtaining information relating to the commercial real estate project from which those risks associated with the development of the commercial real estate project is determined; calculating terms for issuing the insurance while taking into consideration the determined risks associated with the development of the commercial real estate project, the terms including an insurance premium to be paid by the lender or by the borrower; and directing, to the lender, the issued insurance product, which incorporates the calculated terms and insures the lender up to the capped insured amount such that any loss in project value beyond the capped insured amount is bore by the lender, to permit the lender to release the loan despite the reduced personal guarantee from the borrower.