Equity protection

US8190516B2 · kind B2 · utility

Assignee

• Bank of America Corporation · US

Inventors

• Debashis Ghosh · Charlotte, US
• Sudeshna Banerjee · Waxhaw, US
• William Michael Upchurch · Charlotte, US
• Robert H. Eshleman · Charlotte, US
• Christopher James Trainor · Charlotte, US
• Frank B. Turner · Charlotte, US

Key dates

• Filing date: Jan 10, 2011
• Grant date: May 29, 2012
• Expiry date: Jan 10, 2031

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Systems and methods are illustrated for providing an equity protection product to a borrower of a loan. Aspects of the equity protection product may be implemented using an equity protection agreement. The equity protection product may be used to safeguard a borrower's investment in the event of a housing market downturn. In some examples, once the equity protection is purchased, the borrower's equity can only increase or remain stable (i.e., flat) regardless of market conditions. The payoff amount of the borrower's loan may be reduced to compensate for a change in the market value of the borrower's home. The equity protection product may be provided by a lending institution, bank, or any other comparable entity/person. A trading desk may also be used to hedge against the risk created by the equity protection product. In addition, an appraiser may also be used to evaluate and provide current market values of the relevant property.