Homepoint in Ann Arbor, a large wholesale mortgage lender, has announced the launch of Homepoint Cash Compete powered by Accept.inc, a fintech platform that allows borrowers to make cash offers with select lenders.
The company competes with Rocket Cos. Inc. in Detroit and United Wholesale Mortgage in Pontiac and is the smallest of the non-bank lenders in metro Detroit. The region has the highest concentration of mortgage professionals in the country.
The cash buyer program enables independent loan originators nationwide to effectively transform borrowers into all-cash buyers. With cash offers being four-times more likely to win a home, Homepoint Cash Compete equips traditional, mortgage-seeking homebuyers with the financing to compete with investors and other offers in competitive markets.
“All-Cash offers from competing buyers or investors are the biggest obstacle that financing homebuyers face in today’s hyper-competitive markets. Homepoint Cash Compete levels the playing field for those borrowers who need a loan to buy the home of their dreams,” says Phil Shoemaker, president of originations at Homepoint.
“By combining all-cash offers with the lower rates and fees associated with wholesale lending, independent originators give homebuyers and their real estate agents the best shot at closing deals and saving money.”
The program also allows customers to benefit from the lower wholesale mortgage rates, fees, and life-of-the-loan expenses than are traditionally offered by big banks and direct-to-consumer lenders, saving $8,000 on average, according to recent Home Mortgage Disclosure Act (HMDA) data.
With Homepoint Cash Compete, homebuyers can close a cash home purchase loan with Accept.inc in as few as 10 business days, without an appraisal or financing contingency. After the cash purchase is complete, the homebuyer will work with their loan originator to complete the underwrite of the conventional loan application to refinance the cash home purchase loan into a permanent traditional mortgage loan — generally within 30 calendar days of home purchase.
“Cash offers always get preferential treatment from home sellers, so as our program becomes more widespread it has a profound impact on prospective buyers’ ability to stand out from the competition,” says Adam Pollack, CEO of Denver-based Accept.inc. “We are excited to partner with Homepoint to strengthen the homebuying power of hundreds of thousands of homebuyers and real estate agents who can benefit from the expertise of independent mortgage originators.”
Homepoint Cash Compete is currently available to homebuyers in California, Colorado, Minnesota, Oregon, and Washington, and will be expanding.
For more information on Detroit’s nation-leading mortgage industry, read DBusinesss magazine’s cover story called “Battle of the Titans” here.
