System and method for committing to purchase or sell loans

Abstract

A method for generating a price for a loan comprises providing a seller of one or more loans with an ability to make an N-day forward commitment, wherein N is an arbitrary number selectable by the seller. The method further comprises receiving a commitment from the seller for the one or more loans and generating a market-based price for the one or more loans based on the N-day forward commitment.

1 . A computer readable medium having stored therein a set of instructions that when executed cause a computer to implement a process of generating a price for a mortgage loan of a first type committed for sale on a future date, which comprises the steps of:
 receiving, by acquisition logic, an indication of a first commitment date on which the mortgage loan is committed for sale, the first commitment date being any day between 1 and N days from the current day, N being an integer greater than 2, wherein N is an arbitrary number selectable by the seller, and wherein N is selectable by the seller in increments of five or less; and   generating, by pricing logic, a price for the mortgage loan on the first commitment date based on the first commitment date.   
     
     
         2 . A computer readable medium according to  claim 1 , wherein N is at least 90. 
     
     
         3 . A computer readable medium according to  claim 1 , wherein N is at least 120. 
     
     
         4 . A computer readable medium according to  claim 1 , further configured to:
 identify a market price for the mortgage loan of the first type on a first day in the future and a second day in the future, the first and second days being different; and   determine the price for the mortgage loan on the first commitment date in accordance with the market price for the first day and the market price for the second day.   
     
     
         5 . A computer readable medium according to  claim 4 , further configured to:
 calculate the difference in market price for the mortgage loan on the first day and the mortgage loan on the second day;   determine the number of days between the first day and the second day; and   calculate the change in price per day between the first day and the second day based on the difference in price and the determined number of days between the first day and the second day.   
     
     
         6 . A computer readable medium according to  claim 5 , further configured to calculate the price for the mortgage loan on the first commitment date based on the calculated change in price per day and one of the market price for the first day and the market price for the second day. 
     
     
         7 . A computer readable medium according to  claim 5 , further configured to:
 determine the number of days between the first commitment date and a selected one of the first day and the second day; and   calculate the price for the mortgage loan on the first commitment day based on:   a) the calculated change in price per day;   b) the determined number of days between the first commitment date and the selected one of the first day and the second day; and   c) one of the market price for the first day and the market price for the second day.   
     
     
         8 . A computer readable medium according to  claim 4 , wherein the first commitment date is between the first day and the second day. 
     
     
         9 . A computer readable medium according to  claim 4 , wherein the first day and the second day correspond to respective settlement dates for mortgage backed securities, each settlement date being on one day of a respective month of the year. 
     
     
         10 . A computer readable medium according to  claim 1 , further configured to:
 receive an indication of a second commitment date on which the mortgage loan is committed for sale, the second commitment date being different from the first commitment date and being any day between 1 and N;   generate a price for the mortgage loan on the second commitment date based on the second commitment date; and   display a pricing matrix showing the price for the mortgage loan on the first commitment date and the second commitment date.   
     
     
         11 . A computer-implemented method for generating a price for a mortgage loan of a first type committed for sale on a future date, comprising:
 receiving, by acquisition logic, an indication of a first day in the future on which the mortgage loan is committed for sale, the first day in the future being N days from a current day, wherein N is an arbitrary number selectable by the seller, and wherein N is selectable by the seller in increments of five or less;   identifying, by pricing logic, a market price for the mortgage loan of the first type on a second day in the future and on a third day in the future, the second and third days being different;   generating a price for the mortgage loan on the first day in the future, the price determined by the pricing logic based on the market price for the second day and the market price for the third day; and   wherein the acquisition logic and the pricing logic are implemented in a machine that comprises instructions stored in a machine-readable medium and a processor that executed the instructions.   
     
     
         12 . A method according to  claim 11 , further comprising:
 calculating the difference in market price for the mortgage loan on the second day and the mortgage loan on the third day;   determining the number of days between the second day and the third day; and   calculating the change in price per day between the second day and the third day based on the difference in price and the determined number of days between the second day and the third day.   
     
     
         13 . A method according to  claim 12 , wherein the generating includes calculating the price for the mortgage loan on the first day based on the calculated change in price per day and one of the market price for the second day and the market price for the third day. 
     
     
         14 . A method according to  claim 12 , further comprising determining the number of days between the first day and a selected one of the second day and the third day, wherein the generating includes calculating the price for the plurality of mortgage loans on the first day based on:
 a) the calculated change in price per day;   b) the determined number of days between the first day and the selected one of the second day and the third day; and   c) one of the market price for the second day and the market price for the third day.   
     
     
         15 . A method according to  claim 11 , wherein the first day is any day between 0 and 120 days from the current day. 
     
     
         16 . A method according to  claim 11 , wherein the first day is between the second day and the third day. 
     
     
         17 . A method according to  claim 11 , wherein the second day and the third day correspond to respective settlement dates for mortgage backed securities, each settlement date being on one day of a respective month of the year. 
     
     
         18 . A method according to  claim 11 , further comprising:
 receiving an indication of a fourth day in the future on which the mortgage loan is committed for sale;   generating a price for the mortgage loan on the fourth day in the future based on the market price for the second day and the market price for the third day; and   displaying a pricing matrix showing the price for the mortgage loan on the first day in the future and the fourth day in the future,
 wherein the first day and the fourth day are different.