Risk Reduction Mortgage Corp. (RRMC), a New Hampshire-based mortgage product Fintech startup, has announced the launch of its signature solution Risk Reduction Mortgages. The company has said that its new product will be made available to homeowners and creditors starting in 2019.
RRMC has said that its product has been proven to substantially reduce the risk for all stakeholders and provides much-needed stability to the housing finance system. Underpinned by Home Diversification Agreements, Risk Reduction Mortgages will deliver key benefits such as eliminating the need for PMI, HFA, or piggy-back second mortgages for those unable to afford the standard 20-percent down payment–providing savings of thousands of dollars each year for the tens of millions of homeowners in this category.
This product will also provide a diversification benefit enabling homeowners to substantially reduce their home-equity value risk, obtain a similar reduction in foreclosure risk, and enjoy a lower interest rate due to their reduced-risk profile. It will also Provide creditors (e.g.- GSEs) up to a 70-percent reduction in systemic credit losses.
"Our new mortgage product is the most important financial innovation since securitization," said Marc Biron, Founder, and CEO RRMC. "If available at the time, there is strong evidence they would have helped avert the 2008 meltdown."
RRMC is the creator of the exclusive Risk Reduction Mortgage–termed "the only free lunch in Economics," a product that addresses the all-important issues of affordability, diversification, and risks for residential real estate stakeholders.
"Our mission is to help millions of homeowners by diversifying their most concentrated investment–their homes. We will remain relentlessly laser-focused on the homeowner," John N. Osland, Senior Advisor at RRMC said.