Systems and methods for automatically restructuring debt
Systems and methods for automatically restructuring debt are disclosed. An example system may include a data collection circuit to monitor and collect information about at least one entity involved in a loan; and a smart contract circuit to automatically restructure a debt related to the loan based on the monitored and collected information about the at least one entity involved in the loan.
1. A system, comprising: a blockchain service circuit structured to interface with a distributed ledger, the blockchain service circuit comprising a first application programming interface (API) configured to communicate with the distributed ledger; a data collection circuit structured to monitor and collect information about at least one entity involved in a loan from the blockchain service circuit via a second API, the monitored and collected information including blockchain data from the distributed ledger; and a smart contract circuit structured to automatically restructure a debt related to the loan based on the monitored and collected information about the at least one entity involved in the loan, the debt being secured by at least one item of collateral, the smart contract circuit comprising at least one of an artificial intelligence system, a machine learning system, or a neural network, the at least one of the artificial intelligence system, the machine learning system, or the neural network being configured to: maintain a training data set comprising feedback data of outcomes of success comprising recognition of a pattern of prices or value of the item of collateral over time in relation to a collateral satisfaction value; and iteratively train the at least one of the artificial intelligence system, the machine learning system, or the neural network, using the training data set, to: receive the blockchain data via the first API; and output an action value corresponding to a loan-related activity based on the item of collateral, the loan-related activity comprising at least one of validating title for the item of collateral, recording a change in title for the item of collateral, assessing the value of the one of the item of collateral, initiating inspection of the one of the item of collateral, initiating maintenance of the item of collateral, initiating security for the item of collateral, modifying terms and conditions for the item of collateral, offering the loan, accepting the loan, underwriting the loan, setting an interest rate for a loan, deferring a payment requirement, modifying the interest rate for the loan, calling the loan, closing the loan, setting terms and conditions for the loan, providing notices required to be provided to a borrower, foreclosing on property subject to the loan, or modifying terms and conditions for the loan; automatically implement the loan-related activity corresponding to the action value in response to the collateral satisfaction value via a third API; automatically restructure the debt based on an outcome of the automatically implementing the loan-related activity; generate one or more blocks containing data corresponding to the loan-related activity and the automatic restructure of the debt; generate one or more hash values of the one or more blocks; and link the one or more blocks to the blockchain via the one or more hash values via a third API.
2. The system of claim 1 , wherein the monitored and collected information comprises a condition of the at least one item of collateral for the loan.
3. The system of claim 1 , wherein the smart contract circuit is further structured to:
determine an occurrence of an outcome event based on a covenant of the loan and the monitored and collected information about the at least one entity involved in the loan;
update the training data set in response to the occurrence of the outcome event; and
automatically restructure the debt in response to the occurrence of the outcome event.
4. The system of claim 3 , wherein the outcome event is a failure of collateral for the loan to exceed a required fractional value of a remaining balance of the loan.
5. The system of claim 3 , wherein the outcome event is a default of a buyer with respect to the covenant.
6. The system of claim 1 , wherein the monitored and collected information comprises an attribute of the at least one entity involved in the loan.
7. The system of claim 1 , wherein the smart contract circuit further comprises a loan management circuit structured to specify terms and conditions of a smart contract that governs at least one of: loan terms and conditions, a loan-related event, or a loan-related activity.
8. The system of claim 1 , further comprising a valuation circuit structured to use a valuation model to determine a value for the at least one item of collateral based on the monitored and collected information about the at least one entity involved in the loan.
9. The system of claim 8 , wherein the smart contract circuit is further structured to automatically restructure the debt based on the value for the at least one item of collateral.
10. The system of claim 8 , wherein the valuation circuit further comprises a transactions outcome processing circuit structured to:
interpret outcome data relating to a transaction in collateral; and
iteratively improve the valuation model in response to the outcome data.
11. The system of claim 8 , wherein the valuation circuit further comprises a market value data collection circuit structured to monitor and report on marketplace information relevant to a value of the at least one item of collateral.
12. The system of claim 11 , wherein the market value data collection circuit monitors pricing or financial data for an offset collateral item in at least one public marketplace.
13. A method, comprising: receiving blockchain data from a distributed ledger via a first application programming interface (API) configured to communicate with the distributed ledger; monitoring and collecting information about at least one entity involved in a loan via a second API, the monitored and collected information including the blockchain data from the distributed ledger; and automatically restructuring a debt related to the loan based on the monitored and collected information about the at least one entity, the debt being secured by at least one item of collateral; maintaining a training data set comprising feedback data of outcomes of success comprising recognition of a pattern of prices or value of the item of collateral over time in relation to a collateral satisfaction value; and iteratively training at least one of an artificial intelligence system, a machine learning system, or a neural network, using the training data set, to: receive the blockchain data via the first API; and output an action value corresponding to a loan-related activity based on the item of collateral, the loan-related activity comprising at least one of validating title for the item of collateral, recording a change in title for the item of collateral, assessing the value of the one of the item of collateral, initiating inspection of the one of the item of collateral, initiating maintenance of the item of collateral, initiating security for the item of collateral, modifying terms and conditions for the item of collateral, offering the loan, accepting the loan, underwriting the loan, setting an interest rate for a loan, deferring a payment requirement, modifying the interest rate for the loan, calling the loan, closing the loan, setting terms and conditions for the loan, providing notices required to be provided to a borrower, foreclosing on property subject to the loan, or modifying terms and conditions for the loan; automatically implement the loan-related activity corresponding to the action value in response to the collateral satisfaction value via a third API; automatically restructure the debt based on an outcome of the automatically implementing the loan-related activity; generate one or more blocks containing data corresponding to the loan-related activity and the automatic restructure of the debt; generate one or more hash values of the one or more blocks; and link the one or more blocks to the blockchain via the one or more hash values via a third API.
14. The method of claim 13 , further comprising:
determining an occurrence of an outcome event based on a covenant of the loan and the monitored and collected information about the at least one entity involved in the loan;
updating the training data set in response to the occurrence of the outcome event; and
automatically restructuring the debt in response to the occurrence of the outcome event.
15. The method of claim 13 , further comprising operating a valuation model to determine a value for the at least one item of collateral based on the monitored and collected information about the at least one entity involved in the loan.
16. The method of claim 15 , further comprising:
interpreting outcome data relating to a transaction in collateral; and
iteratively improving the valuation model in response to the outcome data.
17. The method of claim 15 , further comprising monitoring and reporting on marketplace information relevant to the value for the at least one item of collateral.
18. An apparatus, comprising: a blockchain service circuit structured to interface with a distributed ledger, the blockchain service circuit comprising a first application programming interface (API) configured to communicate with the distributed ledger; a data collection circuit structured to monitor and collect information about at least one of a borrower or a collateral for a loan from the blockchain service circuit via a second API, the monitored and collected information including blockchain data from the distributed ledger; and a smart contract circuit structured to automatically restructure a debt related to the loan based on the monitored and collected information about the at least one of the borrower or the collateral for the loan, the debt being secured by at least one item of collateral, the smart contract circuit comprising at least one of an artificial intelligence system, a machine learning system, or a neural network, the at least one of the artificial intelligence system, the machine learning system, or the neural network being configured to: maintain a training data set comprising feedback data of outcomes of success comprising recognition of a pattern of prices or value of the item of collateral over time in relation to a collateral satisfaction value; and iteratively train the at least one of the artificial intelligence system, the machine learning system, or the neural network, using the training data set, to: receive the blockchain data via the first API; and output an action value corresponding to a loan-related activity based on the item of collateral, the loan-related activity comprising at least one of validating title for the item of collateral, recording a change in title for the item of collateral, assessing the value of the one of the item of collateral, initiating inspection of the one of the item of collateral, initiating maintenance of the item of collateral, initiating security for the item of collateral, modifying terms and conditions for the item of collateral, offering the loan, accepting the loan, underwriting the loan, setting an interest rate for a loan, deferring a payment requirement, modifying the interest rate for the loan, calling the loan, closing the loan, setting terms and conditions for the loan, providing notices required to be provided to a borrower, foreclosing on property subject to the loan, or modifying terms and conditions for the loan; automatically implement the loan-related activity corresponding to the action value in response to the collateral satisfaction value via a third API; automatically restructure the debt based on an outcome of the automatically implementing the loan-related activity; generate one or more blocks containing data corresponding to the loan-related activity and the automatic restructure of the debt; generate one or more hash values of the one or more blocks: and link the one or more blocks to the blockchain via the one or more hash values via a third API.
19. The apparatus of claim 18 , wherein:
the data collection circuit is further structured to monitor and collect information about the at least one item of collateral for the loan, and
the monitored and collected information comprises a condition of the at least one item of collateral for the loan.
20. The apparatus of claim 19 , further comprising a valuation circuit structured to and use a valuation model to determine a value for the at least one item of collateral for the loan based at least in part on the condition of the at least one item of collateral for the loan.
21. The apparatus of claim 20 , wherein the valuation circuit further comprises a transactions outcome processing circuit structured to:
interpret outcome data relating to a transaction in collateral; and
iteratively improve the valuation model in response to the outcome data.