US 20030074297 A1
A method for managing finances and risks with a computer, the method including the steps of: collecting credit, job, health, family, and financial information at the computer; evaluating this information with the computer; scoring this information with the computer; and generating output including information on financial and risk management.
1. A method for managing finances and risks with a computer, the method including the steps of:
collecting credit, job, health, family, and financial information at the computer;
evaluating this information with the computer;
scoring this information with the computer; and
generating output including information on financial and risk management.
 The present invention pertains to an electrical digital computer machine and a data processing system, methods of making and for using the machine, products produced thereby, as well as data structures and articles of manufacture pertaining thereto, and all necessary intermediates of that which is disclosed herein, all in the field of computerized aspects of data evaluation for the purposes of risk management, investment and product evaluation, and increased efficiencies in the global economies.
 Financial platforms are defined as databases that contain the most current financial information on the entities. The most basic platform is the credit or risk mitigation platform (hereinafter known as the “credit platform”). The credit platform incorporates all current credit information on an entity into one database. This dynamic database (hereinafter known as the “c-file”) instantaneously reflects germane credit information(1) and is available 24/7.
 The next platform is the financial statement platform which incorporates the credit platform information with additional financial information(2) on the entity. This additional information creates a dynamic financial statement (hereinafter known as the “f-file”). These platforms and their database offspring create transparencies and provide ample product, service, and management opportunities for our global and interconnected economies (hereinafter known as the “financial web”).
 Transparency is defined as the accessibility of germane financial and risk information. Significant liquidity and transparency problems have arisen on a global scale that have instilled fear and uncertainty into the minds and markets of the world, and governments and citizens are crying out for better accountability, better governance, and increased transparency.
 Businesses understand the dynamic, rapid, and instantaneous nature of the markets and it inherent risks. Not only are they trying to capture and evaluate the most recent data, they are trying to predict behaviors and thus bring new efficiencies into the markets, the businesses, and the lives of the consumer.
 Fidelity Investments provides an aggregate financial picture available to its customers. This dynamic snapshot supplies the consumer with current and somewhat comprehensive financial information. A more complete picture with more interactive tools would be an improvement.
 The government and the investment community are hard at work to address the lack of transparency in publicly held corporations: better corporate governance, changes in accounting and financial statements, and a general cry for fairness are all at the forefront of today's business climate. On a global scale, in this interconnected, global economy, liquidity crises and market meltdowns can occur due to lack of transparency.
 MISMO, the new electronic mortgage files sponsored by Fannie Mae and the Mortgage Bankers Association, makes the movement of mortgage files and their parts more efficient. Although not fully implemented across the mortgage industry, the launch of MISMO should supply opportunities of interchangeability within each mortgage package that will create efficiencies that can save investors, businesses, and consumers time and money and decrease risk.
 Commercially available ‘alert systems’ come from the credit bureaus and are geared towards businesses and consumers. Of the three credit bureaus, Trans Union and Experian have such products (see Appendix A) whereas Equifax does not. At present, two of the credit bureaus have a useful product in place. Trans Union's product is called ‘Watch’; Experian's is ‘Retention Trigger’: each monitors accounts for inquiries. To activate ‘Watch’, Bank XYZ supplies Trans Union with a name, address (present and previous) and social security number. This account is monitored for inquiries, new trade-lines (mortgages, credit cards, installment loans), employment, and address. Should that file receive information about a change in any of the above four categories, a report is mailed out. The cost for this service is $180/year membership fee plus $2/file/month and $4/feedback(20) . The feedback is mailed, not emailed or faxed. Experian's product, Retention Trigger, triggers with inquiries or new tradelines. The feedback is emailed. They limit their customer files to a minimum of 50,000 files. Cost per month is $7,500 plus 2.3 cents per file. 50,000 files would cost $8,650/month. However, all three credit bureaus collect pertinent information and the integration of that information would provide a more complete consumer profile.
 For example, in the Illinois counties of Cook and Lake, the environment for ‘predatory insurance’ exists. Although the term ‘predatory’ is unusual in connection with homeowners insurance, circumstances in these two counties create an environment whereby a scrupulous business can take advantage of an unsophisticated or enfeebled consumer by stripping equity(22) and/or taking their home. Here is how that scenario plays out:
 Because of several severe weather incidents in the past year, a plethora a very expensive claims have been filed in these two counties. As a general rule, the better insurers like Kemper are not renewing policies that have two claims within a three year period. Those homeowners, because all the better insurers are following this practice, find themselves looking for sub-prime insurers. The annual premium on a $300,000 home has gone from around $550 with Kemper-like insurers (hereinafter known as “A-insurers”) to $2800 with sub-prime insurers. If the homeowner cannot afford the higher premium and has a mortgage, the mortgage company will buy the policy and that cost can go as high as $7000. They will attach the cost to the mortgage payment; some cannot afford the new payment and default on their mortgage. Although this outcome appears unlikely, the enfeebled and isolated could fall prey to predatory businesses.
 In the past, a bank's success in real estate lending was the result of well-documented loan packages undergoing an underwriter's objective scrutiny. However, today's predatory lending environment has lessened the value of the underwriting decision: in the realm of the predatory lender, significant risks begin after the loan leaves the underwriter's hands. Predatory lenders prey upon desperate and/or ill-informed consumers, and it is this reality that the lending world must guard against. A lender that attempts to protect it's portfolio against predatory lenders faces significant challenges:
 1) The resources necessary to battle the predatory lender can be daunting; funding must be available for:
 a) Sufficient and ongoing education of a large client base.
 b) Monitoring a large portfolio.
 c) Damage control and remediation.
 2) The duration of the loans may be for a 30 year term or more. Much can happen during that time span. Sickness, disability, financial hardship, consumerism, etc., all can create an environment ripe for the predatory lender.
 3) Ownership or occupancy may change, affecting the client's stake in the property, it's liens, and it's value.
 Financial products are pricing themselves according to a consumers risk profile. Mortgages can be less expensive if the credit scores of the consumer is better; certain credit cards price themselves according to risk: the riskier the profile the more expensive is the credit. However, this pricing occurs at acquisition and the consumer's risk profile could improve dramatically shortly thereafter.
 In view of the foregoing, an object of the invention is to improve over or overcoming some or all of the drawbacks indicated herein, as observed by the inventor. By way of perspective, this can involve a computer system linked to pertinent data and information to provide more timely and comprehensive information on entity's credit and financial information. The computer system can evaluate the data and information of individual entities and the financial web, and can implement scoring models that help as an evaluation tool. The computer system can share data and information for research purposes, as well as carry out the scoring models with thresholds that incent specific behaviors. The computer system can also create transparencies that help protect against liquidity crises and market meltdowns.
 The computer system can be useful for educating consumers and helping them become more financially savvy, as well as in producing more efficient consumer and business products.
 More particularly, the present invention can be carried out by providing an improved digital electrical computer-based system configured to address the foregoing objects, including a machine (programmed computer), methods for making and using it, products produced by the method, data structures, and necessary intermediates, collectively referenced herein after as the method (for the sake of brevity). The invention can also be viewed as exemplified as a computer-aided method.
FIG. 1 is a flow chart in accordance with the present invention.
FIG. 2 is a flow chart in accordance with the present invention.
FIG. 3 is a flow chart in accordance with the present invention.
FIG. 4 is a flow chart in accordance with the present invention.
FIG. 1 shows, in block diagram form, the computer-based elements, which can be utilized to implement the present invention. FIG. 1 provides the foundation for the invention. There are several components to the invention, in the present embodiment, though it is to be understood that this is an illustrative teaching, with all elements, steps, and features being replaceable, substitutable, and interchangeable within the spirit of the the invention that transcends a particular embodiment
 Accordingly, Credit bureau data (1) represents third party data sent via Electronic File Transfer (EFT) and a TCP/IP network communications system (2). Credit bureau information from Equifax, Experian, and others.
 With regard to Network Communications Systems (2), any upstream, internet Service Provider (ISP) utilizing TCP/IP to transmit data between Data Input Screens. Examples of ISPs include uunet, starnetusa, and Exodus. Well-known and accepted protocols may be any transmission standard able to conduct digital information, including optical, FireWire, biber optic, infrared, cellular, wireless, hard wire, SCSI, ethernet, trunk lines, satellite, and other like systems, may be employed.
 Central Processor and Digital Computer (3) (or via distributed computing) represents the electrical computing devices that receive, process, store, analyze, and distribute data. It is to be expected that numerous computing devices will be employed as business volume grows. The Central Processor and Digital Computer (3) can be comprised of these components:
 one or more CPUs (Central Processing Units);
 one or more digital computers commonly referred to as “servers” (“servers” are the gateway between Local Area and Wide Area digital computers);
 Data storage (hard drives)
 Applications, such as web browers, word processors, database engines, etc.
 Financial Institution Data represents third party data sent via Electronic File Transfer (EFT) and a TCP/IP network communications system (2). Data from banks such as Bank One and many others.
 Further there is Data Input Screen and Terminal (5). Using a network-enabled computer, such as a PowerPC604e and Apple Cinema display, the consumer links to the invention network site by telephone, or telephone-adaptive device, such as TDD. Using his or her touch-tone phone or TDD, the customer interacts with Customer Service Center.
 Credit platform data (6) illustrates the central storage system for all individual consumer credit data.
 Health data (8) represents the central storage system for all individual consumer health data.
 Centralized databases exist for access by insurance companies for underwriting purposes. For example, Insurance Data (9) represents the central storage system for all individual consumer insurance data like C.L.U.E.
 Mortagage Data (10) represents the central storage system for all consumer mortgages. Fannie Mae, Freddie Mac, and title insurance companies have that information.
 Financial Platform Data (14) illustrates the central storage system for individual consumers' financial data.
 Business Product Data (17) represents the business products and services being offered to the consumers such as account aggregation, cell phones, insurance products, etc.
 Subscriber database (18) represents the central storage system of all individual financial platform data.
 Turning now to FIG. 1, note that Credit bureau data (1) is sent through the Network Communications System (2) to the Central Processor Digital Computer (3) along with information from financial institution databases (4) and input from the consumer (5). The computer analyzes and compiles the credit platform data and displays it (6).
 Now in FIG. 2, Credit platform data (7) is sent to the Network Communications System (13) along with Health data (8), insurance data (9), financial institution data (10), and mortgage data (11). This data is received, analyzed, and processed by the Central Processor Digital Computer (12) and displayed as Financial Platform Data (14).
 Referring to FIG. 3, Businesses tender offers (27) after making queries (21) through the Network Communications System (20) to Subscriber Database (18) which sends pertinent data through the Central Processor Digital Computer (15), that sorts the queries into individual offers. These are sent through the Network (16) as business product data (17) that is specified into business terms (26) to create individual offers (27). The consumer (25) may reject (24), accept (29), or counter (28) the offer. The rejection and acceptance travel through the Network (23), and either a reject email (22) or an acceptance email (30) is sent. An acceptance email travels to both the selected business (34) and the Central Processor (31), the latter charging any enabling fees (32). If the offer is countered (28), the selected businesses (34) may negotiate (33). A successful negotiation results in enabling fees being charged (32).
 As illustrated in FIG. 4, Corporation (35) and Industry (36) Data are sent through Network (37) to Central Processor (38) where it is compiled, analyzed, and evaluated and creates Corporation Transparency Risk Data (39). This data is sent through the network (43) to the subscriber database (42) of consumer financial platforms, which sends, through the network (41), this combined data to the credit bureaus (40) and Central Processor (44). The Central Processor compiles, analyzes, evaluates, and scores the data and sends this to the Consumer Financial Platform Data (45). The credit bureaus recompute the credit scores and send to the Central Processor (44) via the network (41).
 The updated consumer platform data is sent to the subscriber database. By carrying out the foregoing, there is illustrated an apparatus and method for managing finances and risks with a computer. The computer carries out the method, which can include the steps of: collecting credit, job, health, family, and financial information at the computer; evaluating this information with the computer; scoring this information with the computer; and generating output including information on financial and risk management.
 While this invention has been particularly shown and described with reference to a preferred embodiment, it will be readily appreciated by those of ordinary skill in the art that various changes and modifications may be made without departing from the spirit or scope of the invention. It is, therefore, contemplated that the appended claim(s) be interpreted as including the foregoing and other changes and modifications.