Patent ID: 8185456

Claim:
A computer-implemented system comprising: a processor; a memory containing a payment algorithm specification module; the payment algorithm specification module configured to receive a value for each of a plurality of loan parameters associated with a collateralized loan from a lender to a borrower; the payment algorithm specification module further configured to receive an estimated future income of the borrower for each of a plurality of time periods, wherein the estimated future income associated with a first time period differs from the estimated future income associated with a second time period; and the payment algorithm specification module further configured to specify a payment algorithm for repaying the loan, wherein the payment algorithm specification module uses, as inputs for establishing the payment algorithm for repayment of the loan, the plurality of loan parameters and the borrower's estimated future income for each of at least the first and second time periods; and wherein the payment algorithm specification module is configured to specify the payment algorithm such that the payment algorithm is configured to determine a payment amount for each of a plurality of time intervals, the payment amount for each of the time intervals to be based on a portion of a realized income value measured in the future for the then-completed time interval.