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.
https://www.housingwire.com/articles/homepoint-launches-arm-products-for-brokers/
About Note Servicing Center
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.
Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.