LIABILITY ADVICE SYSTEM AND METHOD
A computerized method and apparatus for providing a borrower with a choice of products relating to new debts or changes to a portfolio of debts. The method can include collecting borrower information using a user interface, building scenarios of debt products currently available to the borrower, evaluating the scenarios of debt products using (i) payment models for the scenarios determined based on interest and loan information and (ii) the borrower information, and selecting one or more of the scenarios based on the evaluation of the scenarios.
1 . A computerized method for providing a borrower with a choice of products relating to new debts or changes to a portfolio of debts, the method comprising:
a) collecting borrower information using a user interface;
b) building scenarios of debt products currently available to the borrower;
c) evaluating the scenarios of debt products using (i) payment models for the scenarios determined based on interest and loan information and (ii) the borrower information; and
d) selecting one or more of the scenarios based on the evaluation of the scenarios.
2 . The method of claim 1 , further comprising presenting the one or more scenarios to a user via a computer system.
3 . The method of claim 1 , wherein building scenarios of debt products includes using borrower information and determinations of borrower eligibility and pricing information for the debt products.
4 . The method of claim 1 , wherein building scenarios includes considering a list of products from one or more related entities.
5 . The method of claim 1 , wherein building scenarios includes considering a list of products from multiple, unrelated lenders.
6 . The method of claim 1 , wherein building scenarios includes retaining scenarios of debt products having the best pricing for the borrower.
7 . The method of claim 1 , further comprising generating an application for one of the debt products using the collected borrower information.
8 . The method of claim 1 , wherein the payment models are based on statistical models for mortgage indices.
9 . The method of claim 8 , wherein the payment models are based on market prices.
10 . The method of claim 1 , wherein evaluating the scenarios of debt products using borrower information includes consideration of a goal of minimum debt service payments over a particular time horizon.
11 . The method of claim 1 , wherein evaluating the scenarios of debt products using borrower information includes consideration of a goal of maximizing wealth of the client at an end of a declared time horizon.
12 . The method of claim 1 , wherein evaluating the scenarios of debt products using borrower information includes ranking scenarios based on minimum debt service payments over a particular time horizon after eliminating scenarios that do not meet a minimum wealth target of the client at an end of a declared time horizon.
13 . The method of claim 1 , further comprising presenting a high level overview of a current debt situation of the borrower to illustrate opportunities to improve the borrower's financial situation.
14 . The method of claim 1 , further comprising evaluating a current liability portfolio of the borrower to identify opportunities for improvement and risks if no action is taken.
15 . A computerized method for providing a borrower with a choice of products relating to new debts or changes to a portfolio of debts, the method comprising:
a) collecting borrower information using a user interface;
b) generating possible scenarios of debt products for the borrower;
c) retaining scenarios of debt products currently available to the borrower based on the borrower information and determinations of borrower eligibility and pricing information for the debt products;
d) building payment models for the scenarios using models based on interest and loan information;
e) evaluating the payment models using the borrower information; and
f) selecting one or more of the scenarios based on the evaluation of payment models.
16 . The method of claim 15 , further comprising presenting the one or more scenarios to a user via a computer system.
17 . The method of claim 15 , wherein evaluating the payment models using the borrower information includes consideration of a goal of minimum debt service payments over a particular time horizon.
18 . The method of claim 15 , wherein evaluating the payment models using the borrower information includes consideration of a goal of maximizing risk-adjusted wealth of the client at an end of a declared time horizon.
19 . An apparatus for providing a borrower with a choice of products relating to new debts or changes to a portfolio of debts, the apparatus comprising:
a) a user interface module to collect borrower information;
b) a scenario generation module to generate possible scenarios of debt products for the borrower;
c) a quotation engine to retain scenarios of debt products currently available to the borrower based on the borrower information and determinations of borrower eligibility and pricing information for the debt products; and
d) a scenario selection module to
i) build payment models for the scenarios using models based on interest and loan information;
ii) evaluate the payment models using the borrower information; and
iii) select one or more of the scenarios based on the evaluation of payment models.
20 . The apparatus of claim 19 , further comprising a module to monitor a portfolio on a periodic basis and identify circumstances in which changes in the liability portfolio are warranted.
21 . The apparatus of claim 19 , further comprising a transaction management module to generate an application for one of the debt products using the collected borrower information.
22 . The apparatus of claim 19 , wherein the user interface module presents the one or more scenarios to a user via a computer system.
23 . The apparatus of claim 22 , wherein the presented scenarios include a discussion of suitability and relative risks and benefits to the borrower.