What happens if the homeowner refinances their mortgage?
Refinancing a mortgage will not change the terms of a Home Price ProtectionTM contract. Homeowners refinancing their mortgage will retain their original contract. They likewise will not receive a payment upon refinance. • Do you accept all applicants? EquityLock Financial encourages all to apply. But there may be times when the Company will not be issuing new contracts in certain geographical areas. Or, there may be times the Company will limit the number of contracts in a certain market. This is because the Company’s ability to provide homeowners the chance to ‘hedge’ their risk, we seek to diversify risks across all aspects of the business including by geography, time, asset class and demographically. • Would homeowners stop maintaining their home or try to sell it at an artificially low price if they had this protection? Is there a moral hazard problem here? The potential for a ‘moral hazard’ is one reason Home Price ProtectionTM contract payments depend on market indexes, rather th
