Systems and methods for automatic consideration of jurisdiction in loan related actions
Systems and methods for automatic consideration of jurisdiction in loan related actions are disclosed. An example system may include a data collection circuit to determine location information corresponding to each entity involved in a loan; a jurisdiction definition circuit to determine a jurisdiction for at least one of the entities in response to the location information; and a smart contract circuit to automatically undertake a loan-related action for the loan based at least in part on the jurisdiction for at least one of the entities.
1. A system, comprising:
a set of processors that executes a set of executable instructions, the executable instructions causing the set of processors to:
determine location information corresponding to each one of a plurality of entities involved in a loan;
determine a jurisdiction for at least one of the plurality of entities in response to the location information;
use a valuation model to determine a value for a collateral for the loan based on the jurisdiction corresponding to at least one of the plurality of entities; and
execute a smart contract configured to:
automatically execute a loan-related action relating to the loan based at least in part on the jurisdiction of at least one of the plurality of entities and the determined value of the collateral for the loan;
determine an interest rate for the loan to cause the loan to comply with a maximum interest rate limitation applicable in a jurisdiction corresponding to a selected one of the plurality of entities;
generate a block containing outcome data resulting from the loan-related action;
generate a hash value of the block; and
link the block to a blockchain via the hash value.
2. The system of claim 1 , wherein the smart contract is further configured to automatically execute the loan-related action in response to a first one of the plurality of entities being in a first jurisdiction, and a second one of the plurality of entities being in a second jurisdiction.
3. The system of claim 1 , wherein the smart contract is further configured to automatically execute the loan-related action in response to one of the plurality of entities moving from a first jurisdiction to a second jurisdiction.
4. The system of claim 1 , wherein the loan-related action comprises at least one of: offering the loan, accepting the loan, underwriting the loan, setting an interest rate for the loan, deferring a payment requirement, modifying an interest rate for the loan, validating title for collateral, recording a change in title, assessing a value of collateral, initiating inspection of collateral, calling the loan, closing the loan, setting terms and conditions for the loan, providing notices required to be provided to a borrower, foreclosing on a property subject to the loan, or modifying terms and conditions for the loan.
5. The system of claim 1 , wherein the smart contract is further configured to process a plurality of jurisdiction-specific regulatory notice requirements and to provide an appropriate notice to a borrower based on a jurisdiction corresponding to at least one of: a lender, a borrower, funds provided via the loan, a repayment of the loan, or a collateral for the loan.
6. The system of claim 1 , wherein the smart contract is further configured to process a plurality of jurisdiction-specific regulatory foreclosure requirements and to provide an appropriate foreclosure notice to a borrower based on a jurisdiction corresponding to at least one of: a lender, a borrower, funds provided via the loan, a repayment of the loan, or a collateral for the loan.
7. The system of claim 1 , wherein the smart contract is further configured to process a plurality of jurisdiction-specific rules for setting terms and conditions of the loan and to configure a smart contract based on a jurisdiction corresponding to at least one of: a borrower, funds provided via the loan, a repayment of the loan, or a collateral for the loan.
8. The system of claim 1 , wherein the smart contract is further configured to specify terms and conditions that govern at least one of: a loan term, a loan condition, loan-related events, or loan-related activities.
9. The system of claim 1 , wherein the set of processors form part of at least one of: an Internet of Things system, a camera system, a networked monitoring system, an internet monitoring system, a mobile device system, a wearable device system, a user interface system, or an interactive crowdsourcing system.
10. The system of claim 1 , wherein:
the valuation model is a jurisdiction-specific valuation model; and
the jurisdiction corresponds to at least one of: a lender, a borrower, funds provided pursuant to the loan, a delivery location of funds provided pursuant to the loan, a payment of the loan, or a collateral for the loan.
11. The system of claim 10 , wherein at least one of a loan term or a loan condition is based on the value of the collateral for the loan.
12. The system of claim 1 , wherein the executable instructions further cause the set of processors to:
interpret outcome data relating to a transaction in collateral; and
iteratively improve the valuation model in response to the outcome data.
13. The system of claim 1 , wherein the smart contract is further configured to monitor and report on marketplace information relevant to the value of the collateral.
14. The system of claim 1 , further comprising an artificial intelligence circuit structured to:
maintain a training data set comprising feedback data of outcomes of success comprising outcome data relating to transactions in collateral; and
iteratively train the artificial intelligence circuit, using the training data set, to improve the valuation model based on based on the feedback data of outcomes of success.
15. A method, comprising:
monitoring location information corresponding to each one of a plurality of entities involved in a loan;
determining a jurisdiction for at least one of the plurality of entities in response to the location information;
using a valuation model to determine a value for a collateral for the loan based on the jurisdiction corresponding to at least one of the plurality of entities;
automatically execute a loan-related action relating to the loan based at least in part on the jurisdiction of at least one of the plurality of entities and the determined value of the collateral for the loan;
determining an interest rate for the loan to cause the loan to comply with a maximum interest rate limitation applicable in a jurisdiction corresponding to a selected one of the plurality of entities;
generating a block containing data resulting from the loan-related action;
generating a hash value of the block; and
linking the block to a blockchain via the hash value.
16. The method of claim 15 , further comprising automatically executing the loan-related action in response to:
a first one of the plurality of entities being in a first jurisdiction; and
a second one of the plurality of entities being in a second jurisdiction.
17. The method of claim 15 , further comprising automatically executing the loan-related action in response to one of the plurality of entities moving from a first jurisdiction to a second jurisdiction.
18. The method of claim 15 , further comprising:
processing a plurality of jurisdiction-specific requirements based on a jurisdiction of a relevant one of the plurality of entities; and
performing at least one operation that includes at least one of:
providing an appropriate notice to a borrower in response to the plurality of jurisdiction-specific requirements comprising regulatory notice requirements;
setting specific rules for setting terms and conditions of the loan in response to the plurality of jurisdiction-specific requirements comprising jurisdiction-specific rules for terms and conditions of the loan; or
determining an interest rate for the loan to cause the loan to comply with a maximum interest rate limitation in response to the plurality of jurisdiction-specific requirements comprising a maximum interest rate limitation,
wherein the relevant one of the plurality of entities comprises at least one of: a lender, a borrower, funds provided pursuant to the loan, a repayment of the loan, or a collateral for the loan.
19. The method of claim 15 , further comprising:
monitoring at least one of a condition of a plurality of collateral for the loan or an attribute of at least one of the plurality of entities that is party to the loan,
wherein the condition or the attribute is used to determine the interest rate.
20. The method of claim 15 , further comprising:
maintaining a training data set, for an artificial intelligence circuit, comprising feedback data of outcomes of success comprising outcome data relating to transactions in collateral; and
iteratively training the artificial intelligence circuit, using the training data set, to improve the valuation model based on based on the feedback data of outcomes of success.