The patent badge is an abbreviated version of the USPTO patent document. The patent badge does contain a link to the full patent document.
The patent badge is an abbreviated version of the USPTO patent document. The patent badge covers the following: Patent number, Date patent was issued, Date patent was filed, Title of the patent, Applicant, Inventor, Assignee, Attorney firm, Primary examiner, Assistant examiner, CPCs, and Abstract. The patent badge does contain a link to the full patent document (in Adobe Acrobat format, aka pdf). To download or print any patent click here.
Patent No.:
Date of Patent:
Jul. 26, 2011
Filed:
Sep. 03, 2010
Paul A. Thomas, Ashburn, VA (US);
Clifford V. Rossi, Westlake Village, CA (US);
Robert J. Fishman, Olney, MD (US);
Martin M. Loketek, Reston, VA (US);
Paul A. Thomas, Ashburn, VA (US);
Clifford V. Rossi, Westlake Village, CA (US);
Robert J. Fishman, Olney, MD (US);
Martin M. Loketek, Reston, VA (US);
Federal Home Loan Mortgage Association, McLean, VA (US);
Abstract
Embodiments consistent with the present invention provide a credit enhancement structure for risk allocation between parties that minimizes the regulatory capital reserve requirement impact to an institution subject to capital reserve requirement. A subject pool of assets held by the institution, such as a pool of loans, is rated to determine its risk levels. Based on the rated risk levels, a guarantor party agrees to be responsible for a portion of the risk associated with the pool of assets, which may define the maximum risk exposure of the institution holding the asset pool. The risk-rated capital reserve requirements are applied to the asset pool based on the risk level rating and the guarantor's agreed upon risk responsibility such that the institution holds a reduced amount of reserve capital compared to what it would otherwise be required to hold.