DETAILED ACTION
Notice of Pre-AIA or AIA Status
The present application, filed on or after March 16, 2013, is being examined under the first inventor to file provisions of the AIA .
This is a Final Office Action in response to application 19/046,481 entitled "METHOD AND APPARATUS FOR REAL TIME, DYNAMIC MANAGEMENT OF REAL ESTATE FINANCE, SERVICES, AND REPORTING" filed on July 24, 2026, with claims 1-4, 6-8, and 10-17 pending.
Status of Claims
Claims 1-4, 6-8, 10-13, and 15-17 have been amended and are hereby entered.
Claims 5 and 9 are cancelled.
Claims 1-4, 6-8, and 10-17 are pending and have been examined.
Response to Amendment
The amendment filed July 24, 2026, has been entered. Claims 1-4, 6-8, and 10-17 remain pending in the application. Applicant’s amendments to the Specification, Drawings, and/or Claims have been noted in response to the Non-Final Office Action mailed February 27, 2026.
Information Disclosure Statements
The information disclosure statement (IDS) submitted on May 9, 2025 and July 24, 2026, are in compliance with the provisions of 37 CFR 1.97. Accordingly, the information disclosure statement is being considered by the Examiner.
Claim Rejections - 35 USC § 101
35 U.S.C. 101 reads as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
Claims 1-4, 6-8, and 10-17 are rejected under 35 U.S.C. 101 because the claimed invention is directed to an abstract idea without significantly more.
Please see MPEP 2106 for additional information regarding Patent Subject Matter Eligibility Guidance.
Claims 1-4, 6-8, and 10-17 are directed to a method/process, machine/apparatus, (article of) manufacture, or composition of matter, which are/is one of the statutory categories of invention, which are/is one of the statutory categories of invention. (Step 1: YES).
The claimed invention is directed to an abstract idea without significantly more.
Independent Claim 1 recites:
“A system accessible …associated with at least one investor and at least one homeowner of a property pursuant to a housing finance arrangement, wherein the system has access …that is related to the housing finance arrangement, the system comprising:
(a) …. associated with a managing entity, …including at least: (i) a balancing engine that is configured for implementing adjustments under a balancing mechanism specified in the housing finance arrangement,(ii) a data engine configured to create, gather, update, process, store, and communicate at least one time series of at least one data parameter used by the balancing engine, and (iii) a contract engine configured to initiate, implement, enforce, and update the housing finance arrangement;
(b) …associated with a managing entity ("managing entity computing device") which (i) controls access to each of the internal data processing systems and maintains a website associated with the housing finance arrangement, the website providing access to terms, parameter values, required actions specified in the housing finance arrangement, and functions for requesting changes in the housing finance arrangement in real time; and
(c)… having (i) …for communicating with the managing entity …(ii) ….for communicating with …associated with the homeowner ("homeowner application interface"), (iii) ….associated with the investor ("investor application interface"), and (iv) … is configured …with each request to retrieve data from or write data ….access authorization data used by an access protocol … to determine whether the requested retrieval or write is permitted
(d) wherein, for each balancing entry creation, …associated with the managing entity causes the application-layer …over the application interface for accessing …. a query and access authorization data to the data storage system to retrieve real-time data relevant to a balancing calculation, the real-time data including at least contribution data for the homeowner and the investor, a current valuation of the property generated by the data engine, and a balancing mechanism specified by contract data stored …;
(e) wherein the balancing engine, after the access protocol permits retrieval of the real-time data, computes updated equities allocated to the investor and to the homeowner under the housing finance arrangement based on the balancing mechanism and the retrieved real-time data, and causes, through the application-layer … a balancing entry to be written … the balancing entry including at
least the updated equities, input parameter values used to compute the updated equities,
and details of the computation; and
(f) wherein, after the balancing entry is written to the … associated with the managing entity updates the website to display the updated equities and one or more updated parameter values corresponding to the balancing entry, and wherein the contract engine is configured, in response to a request from the homeowner received through the website to alter at least one term in the housing finance arrangement, to retrieve contract provisions governing the request from …through the application-layer … using access authorization data, determine whether the request is permitted under the housing finance arrangement,
and, when the request is permitted and accepted, cause revised terms and an effective date and time of the revised housing finance arrangement to be written to the … through the application-layer …”
These limitations clearly relate to managing transactions/interactions between homeowner, lender, and/or investor. These limitations, under their broadest reasonable interpretation, cover performance of the limitation as certain methods of organizing human activity. Specific instances include instructing to “implementing adjustments under a balancing mechanism specified in the housing finance arrangement” and “updates equities allocated to the investor and to the homeowner under the housing finance arrangement” recite a fundamental economic principles or practice and/or commercial or legal interactions. If a claim limitation, under its broadest reasonable interpretation, covers performance of the limitation as a fundamental economic, commercial, or financial action, principle, or practice then it falls within the “Certain Methods of Organizing Human Activity” grouping of abstract ideas. Accordingly, the claim recites an abstract idea. (Step 2A-Prong 1: YES. The claims recite an abstract idea).
This judicial exception is not integrated into a practical application. In particular, the claims recite the additional elements of:
[by a plurality of computing devices] [to a data storage system that stores data] [a computing device] [computing device] [in the data storage system][from the data storage system] [an application-layer computing device] [computer device][the computing device] [the data storage system ("data storage interface")][computing device] [computing device] [over the data storage interface][from the data storage system][into the data storage system][the computing devices][ a plurality of internal data processing systems] [an application interface ("managing entity interface")][an application interface ][an application interface for communicating with the computing device ][an application interface for accessing] [a plurality of internal data processing systems] [controlled by a computing device][the application-layer computing device] [to the data storage system][the computing device]:
merely applying computer processing, storage, and networking technology as tools to perform an abstract idea
[to transmit]:
insignificant extra-solution activity to the judicial exception of data gathering
are recited at a high-level of generality (i.e., as a generic processor performing a generic computer function) such that it amounts no more than mere instructions to apply the exception using a generic computer components and/or electronic processes. For example, the Applicant’s Specification reads:
[0359] The computer system may be a server computer, a client computer, a personal computer (PC), a user device, a tablet PC, a laptop computer, a personal digital assistant (PDA), a cellular telephone, an iPhone, an iPad, a Blackberry, a processor, a telephone, a web appliance, a network router, switch or bridge, a console, a hand-held console, a (hand-held) gaming device, a music player, any portable, mobile, hand-held device, wearable device, or any machine capable of executing a set of instructions (sequential or otherwise) that specify actions to be taken by that machine.
Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The additional elements merely add instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea, see MPEP 2106.05(f). Accordingly, these additional elements, when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea and are at a high level of generality. Therefore, Claim 1 is directed to an abstract idea without a practical application. (Step 2A-Prong 2: NO. The additional claimed elements are not integrated into a practical application)
Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The additional elements merely add instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea, see MPEP 2106.05(f).
For causing the transmission, MPEP 2106.05(d)(II) indicates that the courts have recognized receiving or transmitting data over a network as well-understood, routine and conventional functions when claimed in a merely generic manner: Receiving or transmitting data over a network, e.g., using the Internet to gather data, Symantec, 838 F.3d at 1321, 120 USPQ2d at 1362 (utilizing an intermediary computer to forward information); TLI Communications LLC v. AV Auto. LLC, 823 F.3d 607, 610, 118 USPQ2d 1744, 1745 (Fed. Cir. 2016) (using a telephone for image transmission); OIP Techs., Inc., v. Amazon.com, Inc., 788 F.3d 1359, 1363, 115 USPQ2d 1090, 1093 (Fed. Cir. 2015) (sending messages over a network); buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1355, 112 USPQ2d 1093, 1096 (Fed. Cir. 2014) (computer receives and sends information over a network).
Accordingly, the additional elements, do not change the outcome of the analysis, when considered separately and as an ordered combination. The claim further defines the abstract idea and hence is abstract for the reasons presented above. The claim does not include any additional elements that integrate the abstract idea into a practical application or are sufficient to amount to significantly more than the judicial exception when considered both individually and as an ordered combination. Therefore, the claim is directed to an abstract idea. Thus, the claim is not patent eligible. (Step 2B: NO. The claim does not provide significantly more)
Dependent Claims recite additional elements.
This judicial exception is not integrated into a practical application. In particular, the recited additional elements of
Claim 2: (none found: does not include additional elements and merely narrows the abstract idea)
Claims 3 and 4:
“data storage system”, “computing device”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 6:
“data engine”, “data storage system”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 7: (none found: does not include additional elements and merely narrows the abstract idea)
Claim 8:
“the third-party data engine”, “computing device”, “data storage system”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 10:
“contract engine”, “computing device”, “data storage system”, “balancing engine”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 11:
“computing device”, “data storage system”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 12:
“computing device”, “data storage system”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
Claim 13:
“computing device”, “data storage system”: merely applying computer processing, networking, and display technologies as a tool to perform an abstract idea
“transmits”: insignificant extra-solution activity to the judicial exception of data gathering
Claim 14:
“data storage system”: merely applying computer storage technologies as a tool to perform an abstract idea
Claim 15:
“data storage system”: merely applying computer storage technologies as a tool to perform an abstract idea
Claim 16:
“data storage system”: merely applying computer storage technologies as a tool to perform an abstract idea
Claim 17:
“data storage system”, “blockchain”: merely applying computer storage technologies as a tool to perform an abstract idea
are recited at a high-level of generality (i.e., as a generic processor performing a generic computer function) such that it amounts no more than mere instructions to apply the exception using a generic computer components and/or electronic processes. For support from the Applicant’s Specification, see the analysis as applied to Independent Claim 1 (Step 2A-Prong 2) earlier. Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The additional elements merely add instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea, see MPEP 2106.05(f). Accordingly, these additional elements, when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea and are at a high level of generality. Therefore, the claim is directed to an abstract idea without a practical application. (Step 2A-Prong 2: NO. The additional claimed elements are not integrated into a practical application)
Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The additional elements merely add instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea, see MPEP 2106.05(f).
For causing the transmission, MPEP 2106.05(d)(II) indicates that the courts have recognized receiving or transmitting data over a network as well-understood, routine and conventional functions when claimed in a merely generic manner: Receiving or transmitting data over a network, e.g., using the Internet to gather data, Symantec, 838 F.3d at 1321, 120 USPQ2d at 1362 (utilizing an intermediary computer to forward information); TLI Communications LLC v. AV Auto. LLC, 823 F.3d 607, 610, 118 USPQ2d 1744, 1745 (Fed. Cir. 2016) (using a telephone for image transmission); OIP Techs., Inc., v. Amazon.com, Inc., 788 F.3d 1359, 1363, 115 USPQ2d 1090, 1093 (Fed. Cir. 2015) (sending messages over a network); buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1355, 112 USPQ2d 1093, 1096 (Fed. Cir. 2014) (computer receives and sends information over a network).
Accordingly, these additional elements, do not change the outcome of the analysis, when considered separately and as an ordered combination. Dependent claims further define the abstract idea that is present in their respective independent claims and hence are abstract for the reasons presented above. The dependent claims do not include any additional elements that integrate the abstract idea into a practical application or are sufficient to amount to significantly more than the judicial exception when considered both individually and as an ordered combination. Therefore, the dependent claims are directed to an abstract idea. Thus, the dependent claims are not patent eligible. (Step 2B: NO. The claims do not provide significantly more)
Claim Rejections - 35 USC § 103
In the event the determination of the status of the application as subject to AIA 35 U.S.C. 102 and 103 (or as subject to pre-AIA 35 U.S.C. 102 and 103) is incorrect, any correction of the statutory basis for the rejection will not be considered a new ground of rejection if the prior art relied upon, and the rationale supporting the rejection, would be the same under either status.
This application currently names joint inventors. In considering patentability of the claims the examiner presumes that the subject matter of the various claims was commonly owned as of the effective filing date of the claimed invention(s) absent any evidence to the contrary. Applicant is advised of the obligation under 37 CFR 1.56 to point out the inventor and effective filing dates of each claim that was not commonly owned as of the effective filing date of the later invention in order for the examiner to consider the applicability of 35 U.S.C. 102(b)(2)(C) for any potential 35 U.S.C. 102(a)(2) prior art against the later invention.
The following is a quotation of 35 U.S.C. 103 which forms the basis for all obviousness rejections set forth in this Office action:
A patent for a claimed invention may not be obtained, notwithstanding that the claimed invention is not identically disclosed as set forth in section 102, if the differences between the claimed invention and the prior art are such that the claimed invention as a whole would have been obvious before the effective filing date of the claimed invention to a person having ordinary skill in the art to which the claimed invention pertains. Patentability shall not be negated by the manner in which the invention was made.
The factual inquiries set forth in Graham v. John Deere Co., 383 U.S. 1, 148 USPQ 459 (1966), that are applied for establishing a background for determining obviousness under 35 U.S.C. 103 are summarized as follows:
1. Determining the scope and contents of the prior art.
2. Ascertaining the differences between the prior art and the claims at issue.
3. Resolving the level of ordinary skill in the pertinent art.
4. Considering objective evidence present in the application indicating obviousness or nonobviousness.
Claims 1, 3, 4, 6-8, 10-12, and 15 are rejected under 35 U.S.C. 103 as being unpatentable over Strnad (“COMPUTER IMPLEMENTED METHOD AND APPARATUS FOR ESTABLISHING AND EXECUTING A DYNAMIC EQUITY INSTRUMENT”, U.S. Publication Number: 20100185467 A1), in view of Florance (“SYSTEM AND METHOD FOR COLLECTION, DISTRIBUTION, AND USE OF INFORMATION IN CONNECTION WITH COMMERCIAL REAL ESTATE”, U.S. Publication Number: 20030078897 A1),in view of Dewolf (“GLOBAL ASSET INFORMATION REGISTRY”, U.S. Publication Number: 20020032626 A1).
Regarding Claim 1,
Strnad teaches,
A system accessible by a plurality of computing devices
(Strnad [0428] the machine may comprise or include a ... personal digital assistant (PDA), a cellular telephone, a Web appliance or any machine capable of executing or transmitting a sequence of instructions that specify actions to be taken.
Strnad [0419] This machine executes homeowner requested shifts between neutral DOOR instruments. ...This request is processed by a server or other device
Strnad [0193] The devices might include servers)
associated with at least one investor and at least one homeowner of a property pursuant to a housing finance arrangement,
(Strnad [Abstract] several computing system based embodiments, holding the real estate asset is considered to be a joint venture, contributions by the owner and the investor to the joint venture
Strnad [0149] In the case of housing finance, the homeowner chooses to use a particular DOOR instrument to finance the home)
wherein the system has access to a data storage system that stores data that is related to the housing finance arrangement,
(Strnad [0193] Cylindrical objects indicate devices that dynamically store data and the current data stored on the devices.
Strnad [0195] The past history of the instrument stored in the cylinder include,...the dates at which the instrument was initialized and adjusted and the applicable long term certainty equivalent rate)
the system comprising: (a) a plurality of internal data processing systems controlled by a computing device associated with a managing entity, the plurality of internal data processing systems including at least: (i) a balancing engine that is configured for implementing adjustments under a balancing mechanism specified in the housing finance arrangement
(Strnad [0193] The devices might include servers with dedicated hard drives, optical media that archive data of perpetual value, and other components useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments.
Strnad [0108] dynamic engine, i.e., the algorithm for making annual adjustments.
Strnad [Claim 2] computing system is configured to... continuously calculating a contribution of each of said owner and said investor to the real estate asset considered as a joint venture; and ...adjust one or more residual accounts to balance out net contributions of said owner and said investor.
Strnad [Claim 7] under predefined conditions specified by said contractual commitment)
(ii) a data engine configured to create, gather, update, process, store, and communicate at least one time series of at least one data parameter used by the balancing engine, and (iii) a contract engine configured to initiate, implement, enforce, and update the housing finance arrangement;
(Strnad [0131] The ANZIE-DOOR accumulation scheme approximates neutrality by adjusting πh and if(t) to keep these parameters in alignment with current market values..... change at a sequence of times t1, t2, . . . , ts where ts is the time of termination. It is convenient to define the length of each time segment ....That lifespan is equal to the duration of home ownership
Strnad [0195] The past history of the instrument stored in the cylinder include, among many other items, the dates at which the instrument was initialized and adjusted)
and (iv) an application interface for accessing the data storage system ("data storage interface"),
(Strnad [0193] Cylindrical objects indicate devices that dynamically store data and the current data stored on the devices. The devices might include servers with dedicated hard drives... can be implemented via fixed software)
(d) wherein, for each balancing entry creation, the computing device associated with the managing entity causes the application-layer computing device, over the application interface for accessing the data storage system
(Strnad [0193] devices might include servers with dedicated hard drives, optical media that archive data of perpetual value, and other components useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments
Strnad [0419] the homeowner's insured equity balance under the existing instrument needs to be converted to actual homeowner "residual claimant" equity under the new instrument. The current insured equity balance is available from the existing DOOR instrument characteristics cylinder ....for the existing instrument and then stored in that cylinder.
Strnad [0299] incorporates a targeted insured equity scheme by using stochastic payments as the residual balancing mechanism.)
including at least contribution data for the homeowner and the investor,
(Strnad [Abstract] contributions by the owner and the investor to the joint venture)
a current valuation of the property generated by the data engine,
(Strnad [0125] Various accumulation schemes are possible, each one defining a different DOOR variant. The goal under ANZIE-DOOR is for the homeowner to accumulate insured equity equal to a percentage of home value in a side account that represents the cumulative result of the homeowner's net contributions to the venture.)
and a balancing mechanism specified by contract data stored in the data storage system;
(Strnad [0073] Net contribution balance exists if the terms of an instrument reflect the relative contributions of the homeowner and the DOOR investor considered as joint venturers. ... to adjust the rate at which insured equity builds up
Strnad [Claim 7] under predefined conditions specified by said contractual commitment)
(e) wherein the balancing engine, … computes updated equities allocated to the investor and to the homeowner under the housing finance arrangement based on the balancing mechanism …,
(Strnad [0214] Existing data in the cylinders such as financial time series are updated continually.
Strnad [0012] The rate is reset periodically, resulting in the parties receiving an updated, economically balanced deal at any point in time. As a result, there is no purely economic incentive for the homeowner to refinance, and valuing the instruments for pooling purposes is easy.
Strnad [Abstract] dynamically between an investor and an owner of rights. ... contributions by the owner and the investor to the joint venture are calculated periodically)
and causes, through the application-layer computing device, a balancing entry to be written to the data storage system, the balancing entry including at least the updated equities, input parameter values used to compute the updated equities, and details of the computation least the updated equities, input parameter values used to compute the updated equities, and details of the computation;
(Strnad [0432] magnetic disk storage media; optical storage media;
Strnad [0058] A DOOR instrument that is not dynamic might nonetheless incorporate pre-determined changes in particular parameters.)
Strnad does not teach (b) a computing device associated with a managing entity ("managing entity computing device") which (i) controls access to each of the internal data processing systems and maintains a website associated with the housing finance arrangement; based on real-time data; and (ii) updates the website; the website providing access to terms, parameter values, required actions specified in the housing finance arrangement, and functions for requesting changes in the housing finance arrangement in real time; and (c) an application-layer computing device having (i) an application interface ("managing entity interface") for communicating with the managing entity computer device, (ii) an application interface for communicating with the computing device associated with the homeowner ("homeowner application interface"), (iii) an application interface for communicating with the computing device associated with the investor ("investor application interface"); wherein the application-layer computing device is configured to transmit, with each request to retrieve data from or write data to the data storage system, access authorization data used by an access protocol of the data storage system to determine whether the requested retrieval or write is permitted; to transmit a query and access authorization data to the data storage system to retrieve real-time data relevant to a balancing calculation, the real-time data; after the access protocol permits retrieval of the real-time data; and the retrieved real-time data; (f) wherein, after the balancing entry is written to the data storage system, the computing device associated with the managing entity updates the website to display the updated equities and one or more updated parameter values corresponding to the balancing entry, and wherein the contract engine is configured, in response to a request from the homeowner received through the website to alter at least one term in the housing finance arrangement, to retrieve contract provisions governing the request from the data storage system through the application-layer computing device using access authorization data, determine whether the request is permitted under the housing finance arrangement, and, when the request is permitted and accepted, cause revised terms and an effective date and time of the revised housing finance arrangement to be written to the data storage system through the application-layer computing device.
Florance teaches,
(b) a computing device associated with a managing entity ("managing entity computing device") which (i) controls access to each of the internal data processing systems and maintains a website associated with the housing finance arrangement;
(Florance [0080] The system of the present invention also provides confidentiality assurance through a system for controlled dissemination of information.
Florance [0105] making the information provider's specified information available through a secured website on the Internet
Florance [0017] brokering a commercial real estate and its financial derivatives)
based on real-time data;
(Florance [0014] access dynamic and interactive content on a real-time basis)
and (ii) updates the website;
(Florance [0442] in the context of commercial real estate, the current practice of providing updated information to a broker's web site is extraordinary complex.
Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers)
the website providing access to terms, parameter values, required actions specified in the housing finance arrangement, and functions for requesting changes in the housing finance arrangement in real time;
(Florance [0105] making the information provider's specified information available through a secured website on the Internet;
Florance [0033] clicking-through an “accept” button for an agreement posted online or by exchanging electronic documents having electronic signatures
Florance [0377] determine the impact on price terms, loan terms, and cash flow.
Florance [0436] if the user wants to learn more about the terms of C & Co.'s lease, then the user clicks on or drags over segment
Florance [0361] Under the financing heading, a user can specify down payment, loan amount, and loan payment in either annual or monthly terms.)
and (c) an application-layer computing device having (i) an application interface ("managing entity interface") for communicating with the managing entity computer device, (ii) an application interface for communicating with the computing device associated with the homeowner ("homeowner application interface"), (iii) an application interface for communicating with the computing device associated with the investor ("investor application interface");
(Florance [0062] laptop computers, cellular communications
Florance [0016] convenient user interfaces
Florance [0063] The system also integrates a wide client and property information management system with a telecommunications system and database
Florance [0061] The system preferably uses a mobile information-collecting device...and a link to the databases of the system of the present invention.
Florance [0151] The network integration applications manipulate the database sets in response to commands from a user and present results of the manipulation to the user.
Florance [0004] individuals, institutions, and owner/users buy and sell buildings.
Florance [0008] investors and owners)
to retrieve real-time data relevant to a balancing calculation, the real-time data; after the access protocol permits retrieval of the real-time data,
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.
Florance [0014] real-time participant interaction... access dynamic and interactive content on a real-time basis)
(f) wherein, after the balancing entry is written to the data storage system, the computing device associated with the managing entity updates the website to display the updated equities and one or more updated parameter values corresponding to the balancing entry, and wherein the contract engine is configured, in response to a request from the homeowner received through the website
(Florance [0442] in the context of commercial real estate, the current practice of providing updated information to a broker's web site is extraordinary complex.
Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers
Florance [Abstract] that interface with a commercial real estate database and support commercial real estate transactions between parties.
Florance [0002] web-based information systems that facilitate the buying and selling of commercial real estate)
to alter at least one term in the housing finance arrangement, to retrieve contract provisions governing the request from the data storage system through the application-layer computing device using access authorization data, determine whether the request is permitted under the housing finance arrangement, and, when the request is permitted and accepted,
(Florance [0086] synchronizes data stored in data sources by cross-checking data sources and prompting the input agent to make necessary changes in affected databases.
Florance [0098] system automatically retrieves and displays the entirety of the currently available information
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the application-layer website updates of Florance for “supplying content from a central database to affiliated web sites.” (Florance [0224]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “access dynamic and interactive content on a real-time basis” Florance [0014])
Florance does not teach the application-layer computing device is configured to transmit, with each request to retrieve data from or write data to the data storage system, access authorization data used by an access protocol of the data storage system to determine whether the requested retrieval or write is permitted; to transmit a query and access authorization data to the data storage system; cause revised terms and an effective date and time of the revised housing finance arrangement to be written to the data storage system through the application-layer computing device.
Dewolf teaches,
the application-layer computing device is configured to transmit, with each request to retrieve data from or write data to the data storage system, access authorization data used by an access protocol of the data storage system to determine whether the requested retrieval or write is permitted;
(Dewolf [Abstract] Managing read and write privileges to the asset registry for various entities having an interest in the asset...Entities having write privileges can write information to the asset registry, and entities having read privileges can read information from the asst registry.
Dewolf [0072] The GAIR 100 would be designed in such as fashion as to store all data described above and potentially endless other amounts of data for the asset.
Dewolf [0153] an exemplary real estate master record 1000. Entities that may write and/or read data)
to transmit a query and access authorization data to the data storage system;
(Dewolf [0074] Third parties may be granted access (permission) to the asset record (or at least a relevant portion thereof)...may be granted permission to read part of or all of the asset records and/or to write to the asset record.
Dewolf [0034] the data is likely transmitted from the person processing the asset ...over the network 104 to the GAIR servers)
cause revised terms and an effective date and time of the revised housing finance arrangement to be written to the data storage system through the application-layer computing device.
(Dewolf [0125] Automatic insurance would entail the automatic insuring of the vehicle according to and at the time of a change in ownership...the proper notification or arrangement with the insurance company (dealers or buyers) by updating the vehicle record in the registry that ownership change had occurred.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the read and write access controls of Dewolf for “Managing read and write privileges.” (Dewolf [Abstract]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “Entities having write privileges can write information to the asset registry, and entities having read privileges can read information from the asst registry” Dewolf [Abstract])
Regarding Claim 3,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
further comprising one or more residual balancing position holders, wherein the housing finance arrangement specifies that the balancing engine
(Strnad [0299] incorporates a targeted insured equity scheme by using stochastic payments as the residual balancing mechanism
Strnad [0086] using other accounts as the residual balancing element)
(i) allocates to the homeowner a scheduled earned equity proportion
(Strnad [0006] upon sale the linear schedule of payments
Strnad [0008] Current equity instruments typically have piecewise linear schedules that assign equity shares, and these schedules are static
Strnad [Claim 2] configured to adjust one or more residual accounts to balance out net contributions of said owner and said investor)
and an unscheduled earned equity proportion;
(Strnad [0009] DOOR instruments permit allocations between the homeowner and equity investor ... can be more general than a linear schedule over various home value ranges, and it can be dynamic, i.e., the rule itself may change as a result of economic conditions or the value of the home
Strnad [Claim 2] configured to adjust one or more residual accounts to balance out net contributions of said owner and said investor.)
based on applying an accumulation algorithm specified in the housing finance arrangement
(Strnad [0124] The accumulation algorithm that governs the accrual of home equity allocates the proportion πh(ta) of returns from the home during the period following adjustment time ta to the homeowner)
and (ii) using the unscheduled earned equity balance of the homeowner as an input, allocates equities to the investor and the values of the residual balancing position holders.
(Strnad [0019] permit the homeowner's initial down payment to be allocated between insured and committed equity, resulting in a situation where insured equity starts at a positive amount
Strnad [0124] governs the accrual of home equity allocates the proportion πh(ta) of returns from the home
Strnad [0134] computed through equation (5) as the “residual account” that balances the contributions of the parties.)
Strnad does not teach real-time data retrieved from the data storage system through the application-layer computing device using the access authorization data,
Florance teaches,
real-time data retrieved from the data storage system through the application-layer computing device using the access authorization data,
(Florance [0014] real-time participant interaction... access dynamic and interactive content on a real-time basis
Florance [Abstract] that interface with a commercial real estate database and support commercial real estate transactions
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the access authorization of Florance for “designation of a first subset of the information customers that are authorized to receive access to the specified information.” (Florance [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. access authorization) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information” Florance [0105])
Regarding Claim 4,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
wherein the balancing engine, for each balancing entry, (i) assesses a current valuation of the property generated by the data engine and respective contributions of the homeowner and the investor during a preceding duration; and (ii) allocates the equities of the homeowner and the investor based on a purchase parity scheme, in which the homeowner's equity balance is adjusted as if the homeowner's contribution during the preceding duration is used to purchase from the investor a commensurate portion of the current valuation of the property.
(Strnad [0262] the contract might permit the homeowner to make additional voluntary payments to the investor at any time. …. these payments result in a compensating increase in the speed of accrual for insured equity ….The payment itself generates an adjustment.)
Strnad does not teach based on data retrieved from the data storage system through the application-layer computing device using the access authorization data;
Florance teaches,
based on data retrieved from the data storage system through the application-layer computing device using the access authorization data;
(Florance [0014] real-time participant interaction... access dynamic and interactive content on a real-time basis
Florance [Abstract] that interface with a commercial real estate database and support commercial real estate transactions
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the access authorization of Florance for “designation of a first subset of the information customers that are authorized to receive access to the specified information.” (Florance [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. access authorization) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information” Florance [0105])
Regarding Claim 6,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
wherein the data engine is configured to access one or more third- party data sources, and wherein the data engine receives data from the third-party data sources to compute.
(Strnad [0210] data collection includes some standard, publicly available data such as publicly available regional and national housing price indices, it also includes transactional and characteristics data on individual homes across the country. ... various computational elements in the machine must be able to access and use different data elements together
Strnad [0214] Existing data in the cylinders such as financial time series are updated continually. In addition, entirely new data may become available. For example, information from new depreciation studies that involve new data sets may have no existing counterpart in the housing economics data cylinder....This process includes the full spectrum of data updating, ranging from routine additions to existing publicly available time series to the addition of entirely new data elements. The updating requires some computing since new data must be put in a form that comports with the data structures in the cylinders.)
Strnad does not teach proprietary (data); the current valuation of the property based on the data from the third-party data sources and proprietary data generated or maintained by the system, and to cause the current valuation of the property to be written to the data storage system through the application-layer computing device using the access authorization data.
Florance teaches,
proprietary (data).
(Florance [0008] To some extent, real estate has operated this way historically, except that each of the brokerage firms referred to these closed networks as “proprietary information.”
Florance [0051] The system has obtained and assimilated over 50 proprietary databases.)
the current valuation of the property based on the data from the third-party data sources and proprietary data generated or maintained by the system, and to cause the current valuation of the property to be written to the data storage system through the application-layer computing device using the access authorization data.
(Florance [0086] synchronizes data stored in data sources by cross-checking data sources
Florance [0285] draws on information from property information application A42 and tenant information application A46 to analyze transactions over a long period of time (e.g., ten years) to provide valuable historical performance data. Assessment information application A48 includes property valuations
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the proprietary data of Florance for “closed networks as “proprietary information.” (Florance [0008]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “autopopulates the documents with appropriate buyer, seller, and proprietary information” Florance [0355])
Regarding Claim 7,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 6 as described earlier.
Strnad teaches,
wherein arrangement data engine includes a …data engine configured to create, gather, update, process, store, and communicate a time series of a … data parameter based on data from the … data sources and a … finance arrangement.
(Strnad [0210] data collection includes some standard, publicly available data such as publicly available regional and national housing price indices, it also includes transactional and characteristics data on individual homes across the country. ... various computational elements in the machine must be able to access and use different data elements together
Strnad [0214] Existing data in the cylinders such as financial time series are updated continually. In addition, entirely new data may become available. For example, information from new depreciation studies that involve new data sets may have no existing counterpart in the housing economics data cylinder....This process includes the full spectrum of data updating, ranging from routine additions to existing publicly available time series to the addition of entirely new data elements. The updating requires some computing since new data must be put in a form that comports with the data structures in the cylinders.
Strnad [0209] The general economic data includes, among other items, various interest rate and macroeconomic time series. These time series are updated periodically.
Strnad [0214] Existing data in the cylinders such as financial time series are updated continually.... includes the full spectrum of data updating, ranging from routine additions to existing publicly available time series to the addition of entirely new data elements.)
Strnad does not teach third-party.
Florance teaches,
third-party
(Florance [0086] synchronizes data stored in data sources by cross-checking data sources
Florance [0061] data stored in a remote database)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the access authorization of Florance for “designation of a first subset of the information customers that are authorized to receive access to the specified information.” (Florance [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. access authorization) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information” Florance [0105])
Regarding Claim 8,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 7 as described earlier.
Strnad does not teach wherein the third-party data engine (a) identifies elements of the third-party data parameters to be recorded on the data storage system; (b) through the managing entity computing device and the application-layer computing device, causes the identified data elements, along with a record of any associated calculations, to be recorded on the data storage system using the access authorization data, wherein the record of any associated calculations includes input values and calculation details used by the data engine to generate the current valuation of the property.
Florance teaches,
wherein the third-party data engine (a) identifies elements of the third-party data parameters to be recorded on the data storage system; (b) through the managing entity computing device and the application-layer computing device, causes the identified data elements, along with a record of any associated calculations, to be recorded on the data storage system.
(Florance [0051] The system includes a comprehensive database of information that is relevant to commercial real estate transactions, a research department for updating the information, and links, through the Internet, for example, to participating organizations and other users....The system has obtained and assimilated over 50 proprietary databases. The database now covers 54 commercial real estate markets in the United States. It tracks over 15 billion square feet in over 350,000 properties, including more than $40 billion in properties for sale, and over 900,000 tenants. It is estimated that 36,000 participating companies use the marketplace of the present invention to distribute information on their properties.
Florance [0151] a core data warehouse in communication with the data mining applications, database processes in communication with the core data warehouse, and network integration applications in communication with the database processes. The data sources gather and generate real estate data. The data mining applications receive and organize the real estate data into separate interrelated modules, and evaluate the real estate data and reconcile the real estate data among the interrelated modules.)
using the access authorization data, wherein the record of any associated calculations includes input values and calculation details used by the data engine to generate the current valuation of the property.
(Florance [0086] synchronizes data stored in data sources by cross-checking data sources
Florance [0285] draws on information from property information application A42 and tenant information application A46 to analyze transactions over a long period of time (e.g., ten years) to provide valuable historical performance data. Assessment information application A48 includes property valuations
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the third-party data of Florance for “information, and links, through the Internet, for example, to participating organizations and other users....The system has obtained and assimilated over 50 proprietary databases.” (Florance [0051]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “companies use the marketplace of the present invention to distribute information on their properties” Florance [0051])
Regarding Claim 10,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
wherein the contract engine, (a) receives, initial contract data describing the housing finance arrangement through the managing entity computing device and the application-layer computing device;
(Strnad [0060] There is an initial “adjustment”—the terms of the instrument when it is originated. In the case of a static instrument, these initial terms specify all future changes in instrument parameters
Strnad [0193] The devices might include servers with dedicated hard drives, optical media that archive data of perpetual value, and other components useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments.
Strnad [0430] The software 1626 may further be transmitted or received over a network 1630 by means of a network interface device 1628.)
(b) identifies data elements of the initial contract data to be recorded on the data storage system; and (c) causes the identified data elements to be recorded on the data storage system through the managing entity computing device and the application-layer computing device
(Strnad [0419] current insured equity balance is available from the existing DOOR instrument characteristics cylinder because both home value and the insured equity percentage have been currently updated in step “1” by the analytic machine for the existing instrument and then stored in that cylinder
Strnad [0193] The devices might include servers with dedicated hard drives, optical media that archive data of perpetual value, and other components useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments.
Strnad [0430] The software 1626 may further be transmitted or received over a network 1630 by means of a network interface device 1628.)
Strnad does not teach using the access authorization data, wherein the identified data elements include contract provisions specifying the balancing mechanism used by the balancing engine.
Florance teaches,
using the access authorization data, wherein the identified data elements include contract provisions specifying the balancing mechanism used by the balancing engine.
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.
Florance [0224] Related to the provision of custom content to individual brokers, another embodiment of the present invention provides a system and method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database,
Florance [0103] characteristics of the derivatives comprise: a common descriptive link between varied commodity types; a contract length that runs from the purchase date of the contract to the performance date for the commodity; and, a contract price.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the third-party data of Florance for “information, and links, through the Internet, for example, to participating organizations and other users....The system has obtained and assimilated over 50 proprietary databases.” (Florance [0051]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “companies use the marketplace of the present invention to distribute information on their properties” Florance [0051])
Regarding Claim 11,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 10 as described earlier.
Strnad teaches,
wherein the homeowner computing device requests altering at least one term in the housing finance arrangement ("requested change") …specifying at least one option for each term to be changed, and wherein the managing entity computing device
(Strnad [0419] This machine executes homeowner requested shifts between neutral DOOR instruments. As shown at the top of the figure, the process begins with a homeowner request for a change.
Strnad [0020] parties might lend the first mortgage funds, as well as making an equity investment in the home. Extensions of this kind permit mechanisms that adjust the mortgage terms, or other debt or equity terms, dynamically in coordination with the terms of the DOOR instrument. For example, the mortgage interest rate and amortization schedule for the mortgage might adjust each period along with the DOOR instrument terms
Strnad [0419] the process begins with a homeowner request for a change. This request is processed by a server or other device)
causes the contract engine to (a) extract…. contract provisions governing the requested change along with other relevant data;
(Strnad [0369] One set indicates that DOOR contractual provisions residing in the DOOR instrument characteristics cylinder specify the annuity payments schedule... that is input to the rate factor computation....the updated long-term certainty equivalent rate is a necessary input into the insured equity percentage computation.)
(b) determines if the requested change is permitted under the housing finance arrangement;
(Strnad [Claim 1] said computing system configured for taking into account... voluntary or required payment by one of said owner and said investor of the obligations ...or any other economic interaction between the owner and the investor specified or permitted by said contractual commitment; )
(c) when the requested change is permitted, (i) determines whether any approvals by parties other than the homeowner are required;
(Strnad [0020] the investor or allied parties might lend the first mortgage funds, as well as making an equity investment in the home. Extensions of this kind permit mechanisms that adjust the mortgage terms, or other debt or equity terms, dynamically in coordination with the terms of the DOOR instrument.)
(ii) seeks a favorable or an unfavorable response of each option from each relevant party whose approval is required;
(Strnad [0149] the homeowner chooses to use a particular DOOR instrument to finance the home)
along with associated data comprising at least an effective date and time, to be recorded onto the data storage system;
(Strnad [0195] past history of the instrument stored in the cylinder include, among many other items, the dates at which the instrument was initialized and adjusted)
Strnad does not teach through the website; through the application-layer computing device using the access authorization data (iii) after receiving the responses from the relevant parties, modifies the website to reflect the responses received; (iv) when the homeowner has confirmed acceptance or rejection of each option, causes the housing finance arrangement, as revised according to the confirmed accepted options; (vii) modifies the website to reflect that the revised housing finance arrangement is in effect.
Florance teaches,
through the website;
(Florance [0105] available through a secured website on the Internet)
through the application-layer computing device using the access authorization data
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
(iii) after receiving the responses from the relevant parties, modifies the website to reflect the responses received;
(Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers)
(iv) when the homeowner has confirmed acceptance or rejection of each option, causes the housing finance arrangement, as revised according to the confirmed accepted options;
(Florance [0273] automatically retrieves and displays the entirety of the currently available information so that the operator can determine if pieces of information are missing or need to be updated.
Florance [0481] response can be, for example, a counter-proposal or an acceptance of the proposal. FIG. 95 illustrates an e-mail message in which the tenant-broker accepts the proposal of the owner/broker.
Florance [0358] a user can skip back and forth between steps to revise information (the steps do not have to be completed in order).
Florance [0230] updating the commercial real estate database in response to receiving denials)
(vii) modifies the website to reflect that the revised housing finance arrangement is in effect.
(Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the application-layer website updates of Florance for “supplying content from a central database to affiliated web sites.” (Florance [0224]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “access dynamic and interactive content on a real-time basis” Florance [0014])
Regarding Claim 12,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 10 as described earlier.
Strnad teaches,
of a residual account position to at least one investor or for a purchase of a residual account position from at least one investor;
(Strnad [0195] The contractual instructions for ANZIE-DOOR include the fact that insured equity is the residual account
Strnad [0015] the investor's position... is equal to home value)
(b) causes to be extracted from the data storage system, contract provisions governing the sale or the purchase, along with other relevant data including data required to determine the terms of the sale or the purchase;
(Strnad [0369] One set indicates that DOOR contractual provisions residing in the DOOR instrument characteristics cylinder specify the annuity payments schedule... that is input to the rate factor computation)
(c) determines if the requested sale or the requested purchase is permitted under the housing finance arrangement;
(Strnad [Claim 1] said computing system configured for taking into account... voluntary or required payment by one of said owner and said investor of the obligations ...or any other economic interaction between the owner and the investor specified or permitted by said contractual commitment; )
and (d) when the requested sale or the requested purchase is permitted under the housing finance arrangement contract, determines applicable terms of the purchase or the sale and, when approvals by the investors are required,
(Strnad [0149] the homeowner chooses to use a particular DOOR instrument to finance the home
Strnad [0020] the investor or allied parties might lend the first mortgage funds, as well as making an equity investment in the home. Extensions of this kind permit mechanisms that adjust the mortgage terms, or other debt or equity terms, dynamically in coordination with the terms of the DOOR instrument.)
causes an offer to sell or to purchase under the applicable terms to be communicated to each investors related to the residual account position, and their responses to be received;
(Strnad [0371] whenever the homeowner initiates a new loan. Because the investor has a choice with respect to the offer price
Strnad [0081] one vehicle for adjusting the DOOR instrument terms to achieve the desired deal between the investor and homeowner.
Strnad [0369] situations may require a contractual response such as limiting or delaying the insurance provided
Strnad [0009] creating or accepting new investments)
(f) if the agreements are received, causes the requested sale or the requested purchase to be recorded on the data storage system, together with the applicable terms and its effective date and time,
(Strnad [0195] past history of the instrument stored in the cylinder include, among many other items, the dates at which the instrument was initialized and adjusted)
resulting residual account position of the homeowner and the investors,
(Strnad [0195] The contractual instructions for ANZIE-DOOR include the fact that insured equity is the residual account
Strnad [0015] the investor's position... is equal to home value)
Strnad does not teach wherein the contract engine (a) receives, through the managing entity computing device, a sell or buy request on the website from a homeowner for a sale; through the application-layer computing device using the access authorization data ;(e) determines from the responses whether the requested sale or the requested purchase on the applicable terms is authorized or denied, and causes agreements with the determination to be received from the homeowner; (g) causes the website to be modified accordingly.
Florance teaches,
wherein the contract engine (a) receives, through the managing entity computing device, a sell or buy request on the website from a homeowner for a sale;
(Florance [0002] distribution and use of information in connection with commercial real estate and web-based information systems that facilitate the buying and selling of commercial real estate.
Florance [0004] To begin with, individuals, institutions, and owner/users buy and sell buildings)
through the application-layer computing device using the access authorization data
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
(e) determines from the responses whether the requested sale or the requested purchase on the applicable terms is authorized or denied, and causes agreements with the determination to be received from the homeowner;
(Florance [0273] automatically retrieves and displays the entirety of the currently available information so that the operator can determine if pieces of information are missing or need to be updated.
Florance [0481] response can be, for example, a counter-proposal or an acceptance of the proposal. FIG. 95 illustrates an e-mail message in which the tenant-broker accepts the proposal of the owner/broker.
Florance [0230] updating the commercial real estate database in response to receiving denials)
(g) causes the website to be modified accordingly.
(Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the application-layer website updates of Florance for “supplying content from a central database to affiliated web sites.” (Florance [0224]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “access dynamic and interactive content on a real-time basis” Florance [0014])
Regarding Claim 15,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
wherein data stored in the data storage system includes, for each housing finance arrangement: (a) contractual information between at least one homeowner and at least one investor; (b) a time series of economic parameters relevant to its management;
(Strnad [0197] The DOOR instrument contract instructions specify how the rate factor is computed,
Strnad [0210] data collection includes some standard, publicly available data
Strnad [0214] Existing data in the cylinders such as financial time series are updated continually.
Strnad [0209] The general economic data includes, among other items, various interest rate and macroeconomic time series. These time series are updated periodically.)
and (c) (i) a record of current and past ownership of debts or equities associated with the property;
(Strnad [0250] The non-financial ownership and control aspects under the DOOR scheme are almost identical to owner-occupation.)
(ii) a record of transactions including at least payments by the homeowner to investors; (iii) a record of any adjustments to or changes in the housing finance arrangement;
(Strnad [Abstract] contributions by the owner and the investor to the joint venture are calculated periodically, and residual accounts or payments are adjusted to balance out the venture
Strnad [0006] upon sale the linear schedule of payments
Strnad [0058] A DOOR instrument that is not dynamic might nonetheless incorporate pre-determined changes in particular parameters. .... Dynamic adjustments themselves may involve changes in schedules.)
(iv) specification of at least one balancing mechanism for tracking at least the homeowner's and investor's net contributions, considering the housing finance arrangement between them as a joint venture and adjusting at least one residual account to reflect the net contributions of each party;
(Strnad [0073] Net contribution balance exists if the terms of an instrument reflect the relative contributions of the homeowner and the DOOR investor considered as joint venturers. ... to adjust the rate at which insured equity builds up)
and (v) a record of data and calculations of the balancing engine that result in adjustments of at least one residual account
(Strnad [Abstract] and residual accounts or payments are adjusted
Strnad [0312] there must be some "residual" element that bears the brunt of the adjustments.
Strnad [Claim 2] computing system configured to adjust one or more residual accounts to)
wherein the record of data and calculations includes input parameter values and computation details written as part of each balancing entry.
(Strnad [Claim 1] providing a computing system configured for calculating each of a committed equity component... computing system configured for dynamically allocating committed equity, insured equity, a balance of a reconciliation account
Strnad [0074] If the parties are experiencing a market deal, terminating the instrument to rewrite the terms
Strnad [0426] Writing down debt results in a market deal)
Claim 2 is rejected under 35 U.S.C. 103 as being unpatentable over Strnad, Florance, and Dewolf in view of Strnad (“COMPUTER IMPLEMENTED METHOD AND APPARATUS FOR ESTABLISHING AND EXECUTING A DYNAMIC EQUITY INSTRUMENT”, Australian Publication Number: AU 2015258248 A1) hereafter referred to as Strnad8248.
Regarding Claim 2,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
or, alternatively, (B):
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where a degree of approximation is specified by the housing finance arrangement.
(Strnad [0072] Even if the adjustment process were continuous, leaving no time gaps for intrinsic value to diverge from actual value, the data required by the process is neither continuously available nor error free. There is an unavoidable element of approximation.)
Strnad does not teach wherein the housing finance arrangement is a direct arrangement, the balancing engine determines the updated equities according to one of a class of non-linear accumulation algorithms specified in the housing finance arrangement, in which a discrete approximation allocates to the homeowner an earned equity proportion, which is either (A):
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where T is a period of time T of ownership, which is divided into equal sub-periods of length
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being the time at which period i begins, ti is the time at which period i ends, and y*(t) is a grossed-up net contribution rate of the homeowner for period t.
Strnad8248 teaches,
wherein the housing finance arrangement is a direct arrangement, the balancing engine determines the updated equities according to one of a class of non-linear accumulation algorithms specified in the housing finance arrangement, in which a discrete approximation allocates to the homeowner an earned equity proportion, which is either (A):
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where T is a period of time T of ownership, which is divided into equal sub-periods of length
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being the time at which period i begins, ti is the time at which period i ends, and y*(t) is a grossed-up net contribution rate of the homeowner for period t.
(Strnad8248 [page 43, line 25 to page 44, line 2]:
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Strnad8248 [page 7, lines 18-31]:
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Greyscale
)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the dynamic equity instrument of Strnad8248 where “risk in a real estate asset are shared dynamically between an investor and an owner of rights.” (Strnad8248 [Abstract]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “real estate asset is considered to be a joint venture, contributions by the owner and the investor to the joint venture are calculated periodically, and residual accounts or payments are adjusted to balance out the venture” Strnad8248 [Abstract])
Claims 13 and 14 are rejected under 35 U.S.C. 103 as being unpatentable over Strnad, Florance, and Dewolf in view of Kroutik (“METHOD AND APPARATUS FOR ISSUANCE OF TRADE OF REAL ESTATE NOTES”, US Publication Number: 20100131426 A1).
Regarding Claim 13,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 1 as described earlier.
Strnad teaches,
(a) the housing finance arrangement is one of a plurality of housing finance arrangements stored in the data storage system; (b) the internal data processing systems further include a computing device ("transaction engine") configured for handling purchases and sales of investor interests;
(Strnad [0193] Cylindrical objects indicate devices that dynamically store data and the current data stored on the devices....useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments.
Strnad [0128] goal under ANZIE-DOOR is to leave the pure housing value risk in the hands of the investor.
Strnad [0371] whenever the homeowner initiates a new loan. Because the investor has a choice with respect to the offer price)
current account balances, and current values of parameters of their housing finance arrangement;
(Strnad [Claim 1] any outstanding residual account balances
Strnad [0165] expected depreciation is negative if the expected value of the put in a year is higher than the current value.)
investor interest ("target investor")
(Strnad [Abstract] contributions by the owner and the investor.... equity interests associated with the asset.)
(ii) upon determining that the solicited response is favorable, causes an acceptance to be sent to the initiating investor:
(Strnad [0149] the homeowner chooses to use a particular DOOR instrument to finance the home
Strnad [0009] DOOR instruments permit allocations between the homeowner and equity investor...creating or accepting new investments in investment pools)
(iii) prepares a set of requisite closing documents, tailored to the initiating investor, the target investor, and the investor interest concerned; makes these documents accessible on the transaction platform portion
(Strnad [0260] The DOOR mechanism admits almost any pattern of fixed contract terms, and neutrality adjustments may involve features other than an insured equity account. It also is possible to relax neutrality with certain goals in mind, to make contract terms flexible, and even to create a capability to switch between neutral DOOR instruments "on the fly.")
(vi) causes data related to the purchase to be recorded onto the data storage system,… thereby effectuating the purchase in the data storage system.
(Strnad [0193] Cylindrical objects indicate devices that dynamically store data and the current data stored on the devices....useful in maintaining the large, expanding data sets relevant to the adjustment process for DOOR instruments.)
Strnad does not teach (c) the managing entity computing device maintains an investor transaction platform portion in the website, the investor transaction platform portion being accessible by approved ones of the investors to engage in purchase or sale of their investor interests in any of the housing finance arrangements, and for the homeowner and the approved investors of each housing finance arrangement to observe terms; (d) the investor platform portion of the website maintains a compilation of: (i) active sales offers by the approved investors in each housing finance arrangement; and (ii) expressed interest from the approved investors of willingness to buy investor interests in the housing finance arrangements; (e) the managing entity: (i) receives, on the investor transaction platform portion of the website, a buy offer from one of the approved investors ("initiating investor") for a purchase of an investor interest in a selected one of the housing finance arrangements; (ii) transmits through the application-layer computing device a query to the data storage system, along with access authorization data to extract relevant data from the selected housing finance arrangement, such relevant data including at least data with respect to an identity of the approved investor or investors holding … whether the investor interest specified in the buy offer ("investor interest concerned") is subject to an active sell offer or is open to the buy offer, and an identity and approval status of the initiating investor; and (iii) receives and provide to the transaction engine the relevant data; and (f) upon determining that the approval status of the target investor is current-and that the target investor is matched to the investor interest concerned, the transaction engine, (i) causes the buy offer to be sent to the target investor and solicits a response therefrom; of the website to the initiating and the target investors; (iv) causes an execution procedure to be sent to the initiating and the target investors; (v) verifies that the execution procedure has been carried out, including all required payments have been made; through the application-layer computing device using the access authorization data
Florance teaches,
(c) the managing entity computing device maintains an investor transaction platform portion in the website, the investor transaction platform portion being accessible by approved ones of the investors to engage in purchase or sale of their investor interests in any of the housing finance arrangements, and for the homeowner and the … investors of each housing finance arrangement to observe terms,
(Florance [0080] The system of the present invention also provides confidentiality assurance through a system for controlled dissemination of information.
Florance [0105] making the information provider's specified information available through a secured website on the Internet
Florance [0017] brokering a commercial real estate and its financial derivatives
Florance [0048] make it possible for lenders to send pre-approved loans to the owner of any building,
Florance [0046] allows a lender to offer better terms to a strong borrower.)
(e) the managing entity: (i) receives, on the investor transaction platform portion of the website, a buy offer from one of the … investors ("initiating investor") for a purchase of an investor interest in a selected one of the housing finance arrangements;
(Florance [0054] Digital selling marketplace—provides the information required to efficiently and securely conduct commercial real estate buy and sell transactions.
Florance [0012] The parties involved in the commercial real estate and related business community..include: sales and leasing brokers; property owners; property management firms; design and construction firms; real estate developers; real estate investment trusts; investment banks; commercial banks; investors)
(ii) transmits through the application-layer computing device a query to the data storage system, along with access authorization data to extract relevant data from the selected housing finance arrangement,
(Florance [0002] communication and analytical tools that interface with a commercial real estate database and support commercial real estate transactions between parties.....a tool for analyzing commercial real estate data.
Florance [0069] The system of the present invention also provides intelligent searching—the query system
Florance [0375] lists such data as the sales status, marketing, final offers, contract signing, closing, active date, last update, and days on market.
Florance [0498] archiving function ... record the specific data related to the event, such as the specific terms of a proposal.)
such relevant data including at least data with respect to an identity of the approved investor or investors holding
(Florance [0345] enables customers to click on a lender's name)
whether the investor interest specified in the buy offer ("investor interest concerned") is subject to an active sell offer or is open to the buy offer, and an identity and approval status of the initiating investor
(Florance [0037] includes background information on buyers, sellers, lenders, owners, principals, and service providers.
Florance [0270] databases that store a particular investor's investment criteria
Florance [0048] lenders to send pre-approved loans to the owner of any building
Florance [0345] enables customers to click on a lender's name
Florance [0176] characteristics in a commodity database if the commodity is being identified to the data processing system for the first time; and (iii) determining a status of the commodity with respect to being a candidate for purchase, sale, or trade
Florance [0048] create a pre-approved credit line or a pre-approved loan for these different properties.)
(i) causes the buy offer to be sent to the target investor and solicits a response therefrom;
(Florance [0046] The system allows a lender to offer better terms to a strong borrower.
Florance [0082] The system of the present invention also provides and facilitates unsolicited refinancing offers for owners of buildings. In this way, the system allows building owners to take advantage)
of the website to the initiating and the target investors;
(Florance [0224] method for supplying content from a central database to affiliated web sites. This embodiment provides access to a comprehensive, up-to-date, integrated commercial real estate database, from which data can be drawn to support commercial real estate web sites for brokerage companies or individual brokers)
(iv) causes an execution procedure to be sent to the initiating and the target investors; (v) verifies that the execution procedure has been carried out, including all required payments have been made;
(Florance [0331] Preferably, the newly authorized potential buyer enters into the agreement by electronically executing and submitting an online confidentiality agreement. Executing and submitting the confidentiality agreement could occur, for example, by clicking-through an "accept" button for an agreement posted online or by exchanging electronic documents having electronic signatures.
Florance [0012] The parties involved in the commercial real estate and related business community..include: sales and leasing brokers; property owners; property management firms; design and construction firms; real estate developers; real estate investment trusts; investment banks; commercial banks; investors
Florance [0406] authorizing the forwarding of an electronic payment to the system operator.)
through the application-layer computing device using the access authorization data
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the application-layer website updates of Florance for “supplying content from a central database to affiliated web sites.” (Florance [0224]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “access dynamic and interactive content on a real-time basis” Florance [0014])
Florance does not teach the approved investors; (d) the investor platform portion of the website maintains a compilation of: (i) active sales offers by the approved investors in each housing finance arrangement; and (ii) expressed interest from the approved investors of willingness to buy investor interests in the housing finance arrangements; and (iii) receives and provide to the transaction engine the relevant data; and (f) upon determining that the approval status of the target investor is current-and that the target investor is matched to the investor interest concerned, the transaction engine.
Kroutik teaches,
the approved investors;
(Kroutik [0105] This information is obtained when the real estate mortgage owner first registers with the system
Kroutik [0107] Upon registration, the investor may be required to demonstrate evidence of a financial ability to purchase RENOs 110 or IPOs
Kroutik [0174] This unique system ID, in one embodiment, is received from central controller 200 when the investor registers for the service. Alternatively, the unique system ID is chosen by the investor and then registered)
(d) the investor platform portion of the website maintains a compilation of: (i) active sales offers by the approved investors in each housing finance arrangement; and (ii) expressed interest from the approved investors of willingness to buy investor interests in the housing finance arrangements;
(Kroutik [0105] This information is obtained when the real estate mortgage owner first registers with the system
Kroutik [0069] log onto a web portal
Kroutik [0107] Upon registration, the investor may be required to demonstrate evidence of a financial ability to purchase RENOs 110 or IPOs
Kroutik [0174] This unique system ID, in one embodiment, is received from central controller 200 when the investor registers for the service. Alternatively, the unique system ID is chosen by the investor and then registered)
and (iii) receives and provide to the transaction engine the relevant data; and (f) upon determining that the approval status of the target investor is current-and that the target investor is matched to the investor interest concerned, the transaction engine.
(Kroutik [0105] This information is obtained when the real estate mortgage owner first registers with the system
Kroutik [0107] Upon registration, the investor may be required to demonstrate evidence of a financial ability to purchase RENOs 110 or IPOs
Kroutik [0174] This unique system ID, in one embodiment, is received from central controller 200 when the investor registers for the service. Alternatively, the unique system ID is chosen by the investor and then registered
Kroutik [0173] This selection allows the investor to post the ISO or the IPO without worrying that he will later be bound when needs may have changed or his offer price has not been matched
Kroutik [Claim 6] identity of at least one real estate mortgage owner and at least one investor by matching identities of real estate mortgage owners stored in the real estate mortgage owner database with certain system users, and by matching identities of investors stored in the investor database)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the approved investors of Kroutik where “information is obtained when the real estate mortgage owner first registers with the system.” (Kroutik [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. approved investors) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “Upon registration, the investor may be required to demonstrate evidence of a financial ability to purchase RENOs 110 or IPOs” Kroutik [0107])
Regarding Claim 14,
Strnad, Florance, and Kroutik teach the housing finance arrangement of Claim 13 as described earlier.
Strnad teaches,
wherein the managing entity operates one or more real estate portfolios as investor, and wherein (a) these portfolios are associated with goals or targets, including replicating performances of municipal, regional, or national housing indices;
(Strnad [0033] implements a version of ANZIE'S SIDE DOOR that incorporates a targeted insured equity scheme;
Strnad [0200] property characteristics from past transactions across the nation, as well as various local, regional and national indices relevant to home values.)
(b) the managing entity balances such portfolios
(Strnad [Claim 1] any outstanding residual account balances)
to keep the portfolios consistent with the goals or targets,
(Strnad [0033] implements a version of ANZIE'S SIDE DOOR that incorporates a targeted insured equity scheme;
Strnad [0093] the goal is to deliver the home in good condition at sale to maximize the insured equity stake due at the close of escrow.
Strnad [0125] he goal under ANZIE-DOOR is for the homeowner to accumulate insured equity)
homeowner accrual of earned equity, homeowner purchase of investor equity, or homeowner sale of earned equity to the investor under the housing finance arrangements;
(Strnad [0404] The output for this machine is an updated committed equity balance... Computation of the new balance requires the old balance
Strnad [0405] accrues insured equity, committed equity)
and (c) the managing entity restricts investor interests in the housing finance arrangements to unleveraged equity, which includes a raw return on owner-occupied housing that represents home appreciation and imputed rent net of expenses.
(Strnad [0248] if there are restrictions, ... restrictions prevent investors from trading freely across all asset types and therefore permit the balkanization of marginal investor status.
Strnad [0051] What the scheme does is create an unleveraged stake in the home for the homeowner.
Strnad [0411] guarantee of positive build up is icing on the cake for investors attracted by the prospect of accruing an unleveraged percentage ownership in a home over time.
Strnad [0022] Even when expected appreciation is high compared to implicit or explicit net rent, adding homeowner payments to the investor results in a faster build up and higher ultimate level of homeowner insured equity)
Strnad does not teach through purchase and sales activity as investor; taking into account portfolio turnovers including: home sales.
Florance teaches,
through purchase and sales activity as investor;
(Florance [0037] enables buyers to more quickly and effectively find and evaluate commercial properties for sale by instantly referencing correlating web-based information. The present invention features properties for sale)
taking into account portfolio turnovers including: home sales.
(Florance [0538] This web-based service enables clients to track and analyze sales comparables in a more timely and comprehensive manner than is currently possible. This service covers 47 national markets, including information on comparable sales such as sale prices, income and expenses, capitalization rates, loan data and other details.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the asset activity of Florance for “track and analyze sales comparables.” (Florance [0538]). The modification would have been obvious, because it is merely applying a known technique (i.e. asset activity ) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “quickly and effectively find and evaluate commercial properties” Florance [0037])
Claims 16 and 17 are rejected under 35 U.S.C. 103 as being unpatentable over Strnad, Florance, and Dewolf in view of Blackman (“SYSTEMS AND METHODS FOR USING BLOCKCHAINS TO RECORD, MANAGE, AND TRANSFER OWNERSHIP RIGHTS TO LAND TITLES”, US Publication Number: 20200234386 A1).
Regarding Claim 16,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 15 as described earlier.
Strnad does not teach wherein the data stored in the data storage system further comprises (a) an access protocol defining various levels of access to data, as well as levels of permission to write new data, the access protocol being configured to evaluate the access authorization data transmitted by the application-layer computing device for each request to retrieve data from or write data to the data storage system; and (b) data describing homes that are subjected to the housing finance arrangements.
Florance teaches,
the access protocol being configured to evaluate the access authorization data transmitted by the application-layer computing device
(Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.
Florance [0120] Each user equipment set includes a display and a location determining device for generating data pertaining to the user's location and for transmitting the data pertaining to the user's location to a remote computer automatically.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the access authorization of Florance for “designation of a first subset of the information customers that are authorized to receive access to the specified information.” (Florance [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. access authorization) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information” Florance [0105])
Florance does not teach wherein the data stored in the data storage system further comprises (a) an access protocol defining various levels of access to data, as well as levels of permission to write new data; for each request to retrieve data from or write data to the data storage system; and (b) data describing homes that are subjected to the housing finance arrangements.
Dewolf teaches,
for each request to retrieve data from or write data to the data storage system;
(Dewolf [Abstract] Managing read and write privileges to the asset registry for various entities having an interest in the asset...Entities having write privileges can write information to the asset registry, and entities having read privileges can read information from the asst registry.
Dewolf [0153] an exemplary real estate master record 1000. Entities that may write and/or read data)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the read and write access controls of Dewolf for “Managing read and write privileges.” (Dewolf [Abstract]). The modification would have been obvious, because it is merely applying a known technique (i.e. application-layer website updates) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “Entities having write privileges can write information to the asset registry, and entities having read privileges can read information from the asst registry” Dewolf [Abstract])
Blackman teaches,
wherein the data stored in the data storage system further comprises (a) an access protocol defining various levels of access to data, as well as levels of permission to write new data; and (b) data describing homes that are subjected to the housing finance arrangements.
(Blackman [Abstract] creating a property blockchain that is permissioned, the property blockchain including a chronologically ordered, back-linked list of one or more blocks,... ...where the permissioned nodes validate transactions associated with the property that are recorded on the property blockchain.
Blackman [0005] mechanism of blockchains to manage ownership and rights arising in systems that require legal identities—permissioned nodes, to validate transactions.
Blackman [0004] write data to the blockchain.
Blackman [0034] information related to a loan on a property....a loan document worksheet, a deed of trust, and a residential loan application.
Blackman [0049] consider a residential purchase property agreement by which a seller transfers a home to a buyer in exchange for a traditional currency or cryptocurrency.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the permissioned blockchain of Blackman for “creating a property blockchain that is permissioned.” (Blackman [Abstract]). The modification would have been obvious, because it is merely applying a known technique (i.e. permissioned blockchain) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “using the distributed consensus mechanism of blockchains to manage ownership and rights arising in systems that require legal identities—permissioned nodes, to validate transactions” Blackman [0005])
Regarding Claim 17,
Strnad, Florance, and Dewolf teach the housing finance arrangement of Claim 15 as described earlier.
Strnad does not teach wherein the data storage system is a permissioned housing finance arrangement blockchain system configured to store the balancing entries, contract provisions, access protocol, and records of data and calculations of the balancing engine.
Florance teaches,
configured to store the balancing entries, contract provisions, access protocol, and records of data and calculations of the balancing engine.
(Florance [0120] correlating information stored in a remote database
Florance [0131] database contains data records, including information pertaining to lease information, sale information, comparable sales information, and tenant information.
Florance [0151] database processes access the reconciled and updated real estate data from the core data warehouse and create database sets.
Florance [0105] obtaining from the information provider a designation of a first subset of the information customers that are authorized to receive access to the specified information on the website; and 3) distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information.)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the access authorization of Florance for “designation of a first subset of the information customers that are authorized to receive access to the specified information.” (Florance [0105]). The modification would have been obvious, because it is merely applying a known technique (i.e. access authorization) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “distributing to each one of the first subset of the information customers that are authorized to receive access to the specified information an ID that can be used to access the specified information” Florance [0105])
Blackman teaches,
wherein the data storage system is a permissioned housing finance arrangement blockchain system.
(Blackman [Abstract] creating a property blockchain that is permissioned, the property blockchain
Blackman [0004] write data to the blockchain.
Blackman [0056] could be implemented in a real estate platform)
It is prima facie obvious to one of ordinary skill in the art before the effective filing date of the claimed invention to have modified the housing finance arrangement of Strnad to incorporate the permissioned blockchain of Blackman for “creating a property blockchain that is permissioned.” (Blackman [Abstract]). The modification would have been obvious, because it is merely applying a known technique (i.e. permissioned blockchain) to a known concept (i.e. housing finance arrangement) ready for improvement to yield predictable result (i.e. “using the distributed consensus mechanism of blockchains to manage ownership and rights arising in systems that require legal identities—permissioned nodes, to validate transactions” Blackman [0005])
Response to Remarks
Applicant's arguments filed on July 24, 2026, have been fully considered and Examiner’s remarks to Applicant’s amendments follow.
Response Remarks on Claim Interpretation
Applicant's amendments rectify the previous claim interpretation.
The claim interpretation is removed.
Response Remarks on Claim Objections
Applicant's amendments rectify the previous claim objections.
The claim objection is removed.
Response Remarks on Claim Rejections - 35 USC § 101
The Applicant states:
“As amended, claim 1 is directed to a specific, practical, computer-implemented architecture … The claim does not merely recite a financial concept and instruct that concept to be performed on a generic computer."
Examiner responds:
The limitations are recited at a high-level of generality (i.e., as a generic processor performing a generic computer function) such that it amounts no more than mere instructions to apply the exception using a generic computer components and/or electronic processes. The Applicant’s Specification reads:
[0359] The computer system may be a server computer, a client computer, a personal computer (PC), a user device, a tablet PC, a laptop computer, a personal digital assistant (PDA), a cellular telephone, an iPhone, an iPad, a Blackberry, a processor, a telephone, a web appliance, a network router, switch or bridge, a console, a hand-held console, a (hand-held) gaming device, a music player, any portable, mobile, hand-held device, wearable device, or any machine capable of executing a set of instructions (sequential or otherwise) that specify actions to be taken by that machine.
Mere instructions to apply an exception using a generic computer component cannot provide an inventive concept. The additional elements merely add instructions to implement an abstract idea on a computer, or merely uses a computer as a tool to perform an abstract idea, see MPEP 2106.05(f). Accordingly, these additional elements, when considered separately and as an ordered combination, do not integrate the abstract idea into a practical application because they do not impose any meaningful limits on practicing the abstract idea and are at a high level of generality.
The Applicant states:
“These operations cannot practically be performed in the human mind and are not merely longstanding commercial practices performed with generic automation.. require a computer to perform a financial calculation."
Examiner responds:
Examiner never rejected the claims under Mental Processing, so the argument is moot.
The focus of the claims is not on an improvement in computers as tools, but on certain independently abstract ideas that use computers as tools. The claims’ invocation of computers, networks, and displays does not transform the claimed subject matter into patent-eligible applications. Nothing in the claims, understood in light of the specification, requires anything other than “merely applying” off-the-shelf, conventional computer, network, and display technology for gathering, synthesizing, sending, and presenting the desired information.
The Applicant states:
“The amended claim is also analogous to DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245 (Fed. Cir. 2014), in which the Federal Circuit held claims eligible because they addressed a problem arising in computer networks using a particular computer-implemented solution. Here, the claimed architecture addresses a computer-centric problem: maintaining a consistent, permission-controlled, auditable state across separate engines, a controlled data storage system, and a website that exposes current terms and parameter values to different user devices."
Examiner responds:
In DDR Holdings, LLC v. Hotels.com, L.P..,the technological problem in previous systems was that they "allowed third-party merchants to lure the host website's visitor traffic away from the host website because visitors would be taken to the third-party merchant's website when they clicked on the merchant's advertisement on the host site." The Court found that the invention:
“[P]rovides a solution to this problem (for the host) by creating a new web page that permits a website visitor, in a sense, to be in two places at the same time. On activation of a hyperlink on a host website -- such as an advertisement for a third-party merchant -- instead of taking the visitor to the merchant's website, the system generates and directs the visitor to a composite web page that displays product information from the third-party merchant, but retains the host website's look and feel.”
In this way, the host website retains visitor traffic while displaying the third-party merchant's products. The Court found that the claims "address the problem of retaining website visitors that, if adhering to the routine, conventional functioning of Internet hyperlink protocol, would be instantly transported away from a host's website after clicking on an advertisement and activating a hyperlink."
Applicant’s invention in no way mirrors this case law. Moreover, Applicant’s invention uses generic computer components and/or electronic processes. Again, the Applicant’s Specification states:
[0359] The computer system may be a server computer, a client computer, a personal computer (PC), a user device, a tablet PC, a laptop computer, a personal digital assistant (PDA), a cellular telephone, an iPhone, an iPad, a Blackberry, a processor, a telephone, a web appliance, a network router, switch or bridge, a console, a hand-held console, a (hand-held) gaming device, a music player, any portable, mobile, hand-held device, wearable device, or any machine capable of executing a set of instructions (sequential or otherwise) that specify actions to be taken by that machine.
The Applicant states:
“The amended claim also resembles the type of eligible ordered combination recognized in BASCOM Global Internet Services, Inc. v. AT&T Mobility LLC, 827 F.3d 1341 (Fed. Cir. 2016).."
Examiner responds:
Applicant's fact pattern differs from BASCOM/Example 34 in which generic additional elements (filtering tool, controlled access network accounts, a local client computer to generate network access requests for the controlled access network accounts, an Internet computer network, and a remote ISP server coupled to the client computer, and the Internet computer network) were utilized in an unconventional and non‐generic combination. At the time, filter tools were only placed on end-user client computers (for custom filtering) or ISP server (for blanket filtering). The proposed invention placed “the installation of a filtering tool at a specific location (ISP server), remote from the end‐users, with customizable filtering features specific to each end user.” The Federal Circuit claimed arrangement of elements in the system results in an improvement in the technology of filtering content on the Internet, because it offers “both the benefits of a filter on the local computer, and the benefits of a filter on the ISP server.”
The invention of the instant application “merely applies” conventional technological components to an abstract idea and does not improve any technical field. See MPEP 2106.05(d) for overcoming “well-understood, routine, and conventional” designation by utilizing a non-conventional network and “non-conventional and non-generic arrangement of known, conventional pieces,” yielding improvements to the functioning of a computer or other technological field.
The rejection under 35 USC § 101 is remains.
Response Remarks on Claim Rejections - 35 USC § 103
Applicant's amendments required the application of new/additional prior art.
New prior art includes:
Dewolf (“GLOBAL ASSET INFORMATION REGISTRY”, U.S. Publication Number: 20020032626 A1).
Applicant’s remarks regarding the rejection made under 35 USC § 103 are rendered moot by the introduction of additional prior art.
Therefore, the rejection under 35 USC § 103 remains.
Prior Art Cited But Not Applied
The prior art made of record and not relied upon is considered pertinent to applicant's disclosure:
Friedman (“Software Solution Management Of Problem Loans”, U.S. Publication Number: 20050278246 A1) proposes automated ASP-delivered loan workout system, inclusive of communication architecture and software method that assists a user in improving the dialogue and counseling sessions between user, borrower, and other involved parties, and which increases loan servicer efficiency while decreasing the time and expense necessary to process loss mitigation cases-including identification of an appropriate financial workout solution, via the use of logical decision tree-based interviews-increases the rate of identification of viable loss mitigation options, and selects and manages the best loss mitigation solution, all in real-time, and within investor and lender requirements, within loan guarantor and insurer conditions, and in compliance with rapidly changing industry standards and government rules.
Conclusion
Applicant's amendment necessitated the new ground(s) of rejection presented in this Office action. Accordingly, THIS ACTION IS MADE FINAL. See MPEP § 706.07(a). Applicant is reminded of the extension of time policy as set forth in 37 CFR 1.136(a). A shortened statutory period for reply to this final action is set to expire THREE MONTHS from the mailing date of this action. In the event a first reply is filed within TWO MONTHS of the mailing date of this final action and the advisory action is not mailed until after the end of the THREE-MONTH shortened statutory period, then the shortened statutory period will expire on the date the advisory action is mailed, and any extension fee pursuant to 37 CFR 1.136(a) will be calculated from the mailing date of the advisory action. In no event, however, will the statutory period for reply expire later than SIX MONTHS from the date of this final action.
Any inquiry concerning this communication or earlier communications from the examiner should be directed to CHINEDU EKECHUKWU whose telephone number is (571)272-4493. The examiner can normally be reached on Mon-Fri 9 AM ET to 3:30 PM ET.
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/C.E./Examiner, Art Unit 3695
/CHRISTINE M Tran/Supervisory Patent Examiner, Art Unit 3695
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