Generic Data Model for Mortgage Pricing Grid Adaptability
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Solution Overview
Problem
Current systems for determining the price of mortgage assets in the secondary mortgage market are inflexible and time-consuming, requiring cumbersome modifications to pricing engines and resulting in inconsistent pricing due to static database table structures, which hinder quick adaptation to new attributes and large batch pricing needs.
Innovation Solution
Implementing a generic data/object model to represent information grids using a tree or flat data structure, allowing for a common software representation of logically different attributes, enabling consistent data interpretation, reuse of components, and efficient management of pricing information, including the creation of metadata components to describe values and locations within the grid.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a static database table structure is used to store pricing information, then data consistency is maintained, but flexibility to modify pricing attributes is reduced and modification time increases
Solution Approach 1:
The patent transforms the static database table structure into a dynamic information grid system where pricing attributes and their relationships can be modified without structural changes. The grid allows runtime adjustments to pricing parameters, enabling the system to adapt to new attributes and pricing scenarios while maintaining data consistency through controlled access and validation mechanisms.
Solution Approach 2:
The pricing information is segmented into discrete cells within an information grid, where each cell represents a specific pricing parameter or attribute. This segmentation allows individual cells to be modified independently without affecting the entire pricing structure, enabling flexible updates to specific pricing attributes while maintaining overall system integrity.
2Measurement precision
If custom pricing engines are modified to accommodate new pricing attributes, then pricing accuracy is improved, but system complexity and modification difficulty increase
Solution Approach 1:
The information grid serves as a universal data structure that can accommodate multiple pricing attributes and scenarios without requiring custom pricing engine modifications. The grid's flexible architecture allows it to handle diverse pricing requirements through configuration rather than code changes, reducing system complexity while maintaining pricing accuracy.
Solution Approach 2:
The information grid acts as an intermediary layer between the pricing engine and the pricing data. This mediator allows the engine to remain relatively simple while the grid handles the complexity of attribute management, relationships, and calculations, thereby improving pricing accuracy without proportionally increasing engine complexity.
3Productivity
If traditional pricing systems are used for large batch pricing, then processing completeness is achieved, but processing speed and efficiency decrease
Solution Approach 1:
The system performs preliminary organization of pricing information into the information grid structure before batch processing begins. This pre-organization of data into accessible grid cells enables faster retrieval and processing during batch operations, significantly improving productivity while maintaining complete pricing coverage for all assets in the batch.
Data Source
AI summary
Systems, methods, and computer program products are provided for creating and using a common, generic, data/object model to represent information grids or lookup tables, such as a mortgage asset pricing information grid, mortgage asset re-pricing grid, and credit risk pricing grid. The common model allows a common software representation for logically different attributes.