With the recent activities surrounding the rate at which mortgage rates are fast rising, the lenders have made an important announcement of the launch of SOFR ARMs products, specially for the broker channel. Homepoint, a Michigan-based wholesale lender’s latest firm, is one of the latest to announce that it is making five, seven, and 10-year adjustable-rate mortgages available to its network of mortgage broker partners. This is a move that is aimed at changing the business model and generating opportunities.
Homepoint announced that the SOFR ARMs would continue to embrace change every six months when the initial rate expires. This will feature a 1% cap at each adjustment intended to minimize the rate of risk involving fluctuation of the market in favor of borrowers. The lender pointed out that SOFR ARMS, based on the latest industry-standard Secured Overnight Financing Rate (SOFR), has an initial fixed-rate attached to it. Moreover, it can make borrowers better, qualify for, and afford homes in the competitive market.
Phil Shoemaker, president of originations at Homepoint, said in a statement that, in addition, the housing market growth is more purchase-heavy. Hence the company wants to be on the front lines of offering mortgage brokers a greater variety of products to give them options and introduce them to a wider customer pool. Shoemaker noted that SOFR ARM products are available through Homepoint, which allows brokers to enlighten people on the issues like the potential advantages of adjustable-rate mortgages and strengthens brokers’ position with their expertise.
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