Patent ID: 7292995

Claim:
A method for managing the amortization of a modifiable mortgage to a debtor and compensating an entity in connection with the origination of the modifiable mortgage in a data processing system, a method comprising the steps of: a. storing in a memory data identifying the debtor, an amount of the modifiable mortgage to the debtor, a principal balance of the modifiable mortgage, an initial rate of interest payable on a principal balance of the modifiable mortgage and a term of the modifiable mortgage; b. recording in memory information identifying time payments received from the debtor for principal and interest on the modifiable mortgage as payments are made; c. tracking and outputting a reduction in the principal balance of the modifiable mortgage and storing in the memory the principal balance in response to the time payments; d. resetting a first interest rate on the principal balance to a new interest rate in response to an election by said debtor; e. maintaining said first interest rate for the balance of the term of the modifiable mortgage in the absence of said debtor's election; f. calculating an annual servicing income based on the servicing income associated with servicing the modifiable mortgage; g. calculating annuity compensation based on a percentage of at least one of said principal balance of the modifiable mortgage or said annual servicing income; h. calculating a commission compensation to be paid upon an occurrence of a triggering event after an origination of the modifiable mortgage; and i. designating and paying the annuity compensation to the entity in connection with the origination of the modifiable mortgage in accordance with said payment schedule and paying the commission compensation upon the occurrence of said triggering event.