Several good patents today. Here's the most ironic. The assignee is Freddie Mac -- good thing they didn't have to argue commercial success.
Looks like a simple application of a computer to a manual process, which shouldn't survive Bilski.
United States Patent 7,451,095 Systems and methods for income scoring
Assignee: Freddie Mac
1. A computer implemented method for providing a score indicating whether that a stated income of a borrower is likely to be faulty, said method comprising the steps of:
receiving by a computer borrower information representative of the borrower from a first source, the borrower information including the stated income of the borrower;
based on the borrower information, income-verifying information from a second source;
said computer providing the score by:
initializing one or more variables of a model based on the stated income and the income-verifying information;
calculating one or more coefficients for the one or more initialized variables;
determining the score by multiplying the one or more initialized variables by the corresponding coefficient and summing the results, such that the score indicates whether the stated income of the borrower is likely to be faulty; and
providing the determined score.
Here's another one from today. Be sure to look at step (j). I guess if you say it is a "physical" transformation, that suffices. I'd really like to see that 'lumpy' cash flow get smoothed out.
United States Patent 7,451,104 Method for funding an organization
Assignee: LTI Agency, LLC
1. A method for funding an organization, said method comprising the steps of:
(a) establishing a special purpose entity for the benefit of said organization;
(b) identifying life insurance policies, said life insurance policies being on individuals in whom said organization and said special purpose entity have an insurable interest, said policies having premiums, death benefits and a beneficiary;
(c) calculating the timing and amount of predicted cash flows from said death benefits, using a suitably programmed computer, along with a census of said individuals and mortality projections, said predicted cash flows from said premiums and said predicted cash flows from said death benefits having an internal rate of return (IRR):
(d) utilizing an asset-backed securities transaction for the purpose of funding said organization by issuing debt securities, proceeds from the issuance of said debt securities to be used to initiate said life insurance policies by paying said premiums, said predicted cash flows from said death benefits from said life insurance policies to be used to repay said debt together with interest and servicing thereon, while a portion of said predicted cash flows is to be used to fund said organization, said asset-backed security transaction having a borrowing rate;
(e) calculating the interaction of said predicted cash flows with said asset-backed securities transaction using said computer to determine funding of said organization;
(f) issuing, by said special purpose entity, said debt securities in an asset-backed securities market in exchange for said proceeds;
(g) using said proceeds from the issuance of said debt securities to initiate said life insurance policies by paying premiums on said life insurance policies, said life insurance policies being owned by said special purpose entity, said special purpose entity being sole beneficiary of said life insurance policies;
(h) receiving, by said special purpose entity, actual cash flows from said death benefits of said policies as said policies mature, said actual cash flows being lumpy;
(i) directing, by said special purpose entity, a repayment portion of said actual cash flows to repaying said debt together with interest and servicing thereon and a funding portion of said actual cash flows to said organization
(j) arranging for a swap provider to physically transform said lumpy cash flows from said death benefits into smooth, guaranteed cash flows, resulting in a schedule of payments for funding of said organization regardless of said actual cash flows from said death benefits; and
(k) paying said organization according to said schedule of Payments by the swap provider.