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United States Patent  [ii] Patent Number: 4,742,457
Leon et al.  Date of Patent: May 3, 1988
 SYSTEM AND METHOD OF INVESTMENT MANAGEMENT INCLUDING MEANS TO ADJUST DEPOSIT AND LOAN ACCOUNTS FOR INFLATION
 Inventors: Tomas Leon; Lewis J. Spellman, both of Austin, Tex.
 Assignee: Trans Texas Holdings Corporation, Austin, Tex.
 Appl. No.: 770,493
 Filed: Aug. 27,1985
 Int. a,4 G06F 15/30
 U.S. a 364/408; 235/379;
 Field of Search 364/408, 200, 900;
 References Cited
U.S. PATENT DOCUMENTS
4,194,242 3/1980 Robbins et al 364/200
4,232,367 11/1980 Youden et al 364/408
4,321,672 3/1982 Braun et al 364/408
4,346,442 8/1982 Musmanno 364/408
4,376,978 3/1983 Musmanno 364/408
Barnett and McKenzie (1984) "Mortgages with Indexed Principals" Alternative Mortgage Instruments. Weiner, S. E. (1983) Why Are So Few Financial Assets Indexed to Inflation, Economic Review, Financial Reserve Bank of Kansas City, pp. 3-18. Sharplin, A. D. (Aug. 1983) "Indexed Lendings", Mortage Banking pp. 57-63.
Sharplin, A. D. (Nov. 1982), "Indexed Mortgage Pass— Throughs," Pension World, pp. 30-32.
McCulloch, J. H. (Sep. 1982), "Affordability and Inflation Protection," Mortgage Banking, pp. 8-13. Wurtzeback, C. H. and Waller, N. G. (1985), "Duration: A Powerful New Tool for Managing Interest Rate Risk," Real Estate Review, 15:66-69. Ranson, D. (Jul. 8, 1985), "Interest Rates Aren't Really High," Fortune, pp. 147-148.
Primary Examiner—Jerry Smith
Assistant Examiner—Gail O. Hayes
Attorney, Agent, or Firm—Arnold, White & Durkee
Data processing for novel form of relationship management links, supervises, and balances depositors, marketing agents, financial intermediaries, mortgage brokers, and borrowers in an inflation-adjusted financing program. Funds are deposited in participating financial institutions in return for certificates of deposit yielding a fixed rate of interest, plus principal growth at a yearly rate equal to that year's rate of growth in the Consumer Price Index-All Urban Consumers, All Items. Funds on deposit are loaned to borrower, either directly or through brokers, at a rate calculated by adding three components: a fixed debt service rate, a fixed constant interest rate, and an inflation factor interest rate which reflects the effects of inflation on the outstanding loan balance. Organizing company sychronizes entire program by contacting depositors through marketing agent, designating institutions to receive depositors' funds, contacting borrowers directly or through brokers, and by supplying data processing capabilitites to financial intermediaries for purposes of impletation of the program and for analysis of the effects of the program on the intermediaries' capital structures.
40 Claims, 8 Drawing Sheets