Peer-to-Peer Mortgage Leader Approaches $300M in Loan Volume
BOSTON, MA — (Marketwire — May 1, 2015) — National Family Mortgage, the U.S. marketplace leader for peer-to-peer mortgage loans, today announced the launch of their innovative, Caregiver Mortgage. The Caregiver Mortgage is a secured home equity line of credit crowdfunded by the relatives of a homeowner. It allows the homeowner to receive tax-free cash borrowed against home equity, knowing that their own family – and not a bank – is building equity in their home. The Caregiver Mortgage offers many of the features and benefits that attract borrowers to reverse mortgages, but without the costs and restrictions.
Institutional reverse mortgage products are constrained by several federal requirements that limit consumer choice and leave borrowers with poor one-size-fits-all options. For example, there are age and counseling requirements, as well as lending restrictions determined by age and location. Generally, institutional lenders also charge high closing costs, high interest rates, and hefty annual insurance premiums. Of course, home equity is lost as it’s transferred from the family over to the lending institution.
“The Caregiver Mortgage affords borrowers the resources and freedom to enjoy their retirement, while empowering lenders to provide financial support that is predictable, flexible, and will be repaid,” said National Family Mortgage CEO Timothy Burke. “The Caregiver Mortgage encourages family participation; our transparent loan management platform allows lenders to track their disbursements, add notes or receipts, and calculate year-end tax reports. Proper documentation sets clear expectations and prevents future misunderstandings with the IRS or between family members.”
Each lender has the ability to set their individual credit-line that will contribute to the
collective credit-line offered by all of the participants. While many lenders may intend to extend a fixed monthly disbursement, the Caregiver Mortgage grants the flexibility for lenders to make disbursements whenever needed; even daily, if necessary. The line of credit becomes due and must be paid in full when the last surviving borrower passes away, the last surviving borrower sells the home, or the term of the credit-line ends.
“We’re offering U.S. families creative, helpful products with real lasting value,” continued Burke. “Our peer-to-peer narrative is real; that is why we are so successful.”
To learn more, please visit: http://www.nationalfamilymortgage.com
About National Family Mortgage
National Family Mortgage is an online peer-to-peer lending company committed to offering consumers alternatives to traditional and costlier forms of home financing. National Family Mortgage has developed a safe and easy way for families to structure real estate loans with their relatives – thereby helping people arrange affordable loans, while reducing tax issues, protecting relationships, and keeping money in the family. National Family Mortgage has originated over $290M in loan volume since inception, while keeping over $130M in interest within families.
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