Servicer compensation system and method

Abstract

A method that comprises acquiring a home mortgage loan having a loan asset and a servicing asset and compensating a servicer that performs servicing of the loan during a term of the loan. The compensation provided to the servicer does not decrease through time during the term of the loan.

What is claimed is:  
     
         1 . A method comprising: 
 acquiring a home mortgage loan having a loan asset and a servicing asset;    compensating a servicer that performs servicing of the loan during a term of the loan, wherein compensation provided to the servicer does not decrease through time during the term of the loan.    
     
     
         2 . A method according to  claim 1 , wherein compensating the servicer comprises permitting the servicer to retain the compensation from a payment received by the servicer from a borrower.  
     
     
         3 . A method according to  claim 1 , wherein the loan comprises a loan asset and a servicing asset, the loan asset comprising a right to receive loan payments from a borrower in connection with the loan, the loan payments comprising a principal payment portion and an interest payment portion, the servicing asset comprising a right to receive a servicing fee portion of the interest payment portion in exchange for performing servicing of the loan, wherein the servicing fee portion of each loan payment decreases as an unpaid principal balance of the loan decreases.  
     
     
         4 . A method according to  claim 1 , wherein compensation provided to the servicer is substantially fixed during the term of the loan.  
     
     
         5 . A method according to  claim 1 , wherein compensation provided to the servicer increases during the term of the loan.  
     
     
         6 . A method according to  claim 1 , further comprising decomposing the home mortgage loan into a plurality of sub-loan level cash flows; and then repackaging the plurality of sub-loan level cash flows and combining the plurality of sub-loan level cash flows with other cash flows to form a plurality of financial assets.  
     
     
         7 . A method comprising: 
 acquiring a home mortgage loan having a loan asset and a servicing asset, the loan asset comprising a right to receive loan payments from a borrower in connection with the loan, the loan payments comprising a principal payment portion and an interest payment portion, the servicing asset comprising a right to receive a servicing fee portion of the interest payment portion in exchange for performing servicing of the loan, wherein the servicing fee portion of each loan payment decreases as an unpaid principal balance of the loan decreases;    repackaging cash flows associated with the home mortgage loan to create a modified servicing fee, the modified servicing fee providing a different compensation structure for the servicer than the servicing fee portion of the loan payment; and    compensating a servicer that performs the servicing of the loan during a term of the loan with the modified servicing fee.    
     
     
         8 . A method according to  claim 7 , further comprising subcontracting responsibility for performing servicing of the loan to the servicer.  
     
     
         9 . A method according to  claim 7 , further comprising reselling the servicing asset to the servicer, and wherein the resold servicing asset comprises a right to receive the modified servicing fee in exchange for performing servicing of the loan.  
     
     
         10 . A method according to  claim 7 , wherein compensation provided to the servicer does not decrease during the term of the loan.  
     
     
         11 . A home mortgage loan servicing method comprising: 
 servicing a home mortgage loan having a loan asset and a servicing asset, the loan asset comprising a right to receive loan payments from a borrower in connection with the loan, the loan payments comprising a principal payment portion and an interest payment portion, the servicing asset comprising a right to receive a servicing fee portion of the interest payment portion in exchange for performing servicing of the loan, wherein the servicing fee portion of each loan payment decreases as an unpaid principal balance of the loan decreases; and    receiving compensation in the form of a modified servicing fee for servicing the loan, wherein the modified servicing fee does not decrease as the unpaid principal balance of the loan decreases.    
     
     
         12 . A method according to  claim 11 , wherein the receiving step comprises receiving a payment from a borrower and retaining the modified servicing fee before forwarding a remainder of the payment to an owner of the loan asset.  
     
     
         13 . A method according to  claim 11 , wherein the compensation received by the servicer is substantially fixed during the term of the loan.  
     
     
         14 . A method according to  claim 11 , wherein the compensation received by the servicer increases during the term of the loan.  
     
     
         15 . A method comprising: 
 decomposing each of a plurality of home mortgage loans into a plurality of sub-loan level cash flows, each of the plurality of home mortgage loans having a loan asset and a servicing asset, the loan asset comprising a right to receive loan payments from a borrower in connection with the loan, the loan payments comprising a principal payment portion and an interest payment portion, the servicing asset comprising a right to receive a servicing fee portion of the interest payment portion in exchange for performing servicing of the loan, wherein the servicing fee portion of each loan payment decreases as an unpaid principal balance of the loan decreases;    repackaging the plurality of sub-loan level cash flows to form a plurality of financial assets backed by the plurality of sub-loan level cash flows, including repackaging cash flows associated with the servicing asset to created a modified servicing fee, wherein the modified servicing fee does not decrease as the unpaid principal balance of the loan decreases;    storing information pertaining to a mapping relationship between the plurality of financial assets and the plurality of sub-loan level cash flows, the mapping relationship describing a manner in which cash flows flowing into each of the plurality of financial assets are traceable back to the plurality of sub-loan level cash flows, the displaying step being performed by a computer-implemented cash flow repackaging tool used by the human operator;    processing loan payment information in accordance the stored information and generating information regarding investment proceeds due to one or more owners of the plurality of financial assets, including 
 receiving a plurality of loan payments in connection with the plurality of loans,  
 accessing the stored information that describes the mapping relationship between the plurality of financial assets and the plurality of sub-loan level cash flows, and  
 allocating, for each of the plurality of loans, corresponding ones of the plurality of sub-loan level cash flows to a respective one of the plurality of financial assets based on the mapping information; and  
   paying one or more owners of the plurality of financial assets with funds derived from the plurality of loan payments and in accordance with the allocation of the plurality of sub-loan level cash flows to the respective ones of the plurality of financial assets; and    compensating a servicer that performs the servicing of the loan during a term of the loan with the modified servicing fee.