Community Bank First To Offer Interest-Rate-Resetting Mortgage

Posted by Orb Staff on December 11, 2009 No Comments
Categories : Residential Mortgage

Mortgage Harmony Corp., a provider of residential mortgage products, and 1st Commonwealth Bank of Virginia have signed an agreement that makes the bank the first to sell the Harmony Loan mortgage.

The Harmony Loan brings a patented, ongoing compensation structure to the loan officer, which the companies say aligns the interests of the consumer, the loan officer and the bank. The product is available through 1st Commonwealth Bank of Virginia as a 3/1, 5/1 or 7/1 adjustable-rate mortgage. The product allows borrowers who meet certain criteria to reset their rates often as every 120 days, enabling them to take advantage of lower rates, Mortgage Harmony says.

1st Commonwealth Bank of Virginia, which was founded in February, will originate its first Harmony Loan this week.

"The Harmony Loan adapts to lowering interest rates without the risk inherent in adjustable-rate products," says Shane Chalke, president of Mortgage Harmony. "As a relatively new financial institution, 1st Commonwealth Bank of Virginia recognizes the days of short-term mortgage products are behind us, and we applaud their taking a leadership position by becoming the first to sell this product."

Ernie Tressler, president and CEO of the bank, says the product serves a customer-retention benefit, helping safeguard the bank from losing a loan to a refinance.

SOURCE: Mortgage Harmony Corp.

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