Patent ID: 8635136

Claim:
A computer implemented method of calculating a reduced fee associated with combining previously securitized mortgage-backed securities to form a Mega, which is a new and larger security backed by two or more of said previously securitized mortgage-backed securities, comprising: identifying, with a first computer, a group of Megas that correspond to at least one predetermined fee discount parameter, said group of Megas being members of a set of Megas, said set of Megas containing a number of Megas equal to or larger than a number of Megas in said group of Megas, setting a maximum number of Megas m; calculating, with a second computer, a fee for said group of Megas; repeating said steps of identifying a group and calculating a fee until a plurality of groups of Megas have been identified and corresponding Mega group fees have been calculated; choosing, with a third computer, from said plurality of groups of Megas a final set of Mega groups having a reduced total fee; and combining the final set of Mega groups to form a new mortgage backed security having a reduced prepayment variation in comparison to the groups of Megas such that the maximum number of Megas in the new mortgage backed security is not greater than m.