Whats In It for the Lender/ The Bank?
We all now have a unique opportunity to bring a product that is beneficial for all parties to the United States residential home financing market. It benefits your clients in that they now have a mortgage that works much better for them than what they’re used to. It benefits you in that you now have another product to sell to your A Paper clients that sets you apart. It benefits CMG and GMAC in the same way in that we now have another product to offer. 1. Why hasnt this loan been offered to the public in the past? It’s simple. Banks have historically dominated the mortgage market, and they make money by paying small interest rates on deposits, and then loaning that money back out in the form of mortgages, earning a profit on the spread between their loan rates and deposit rates. If banks offered this to their customers, their spread would disappear, and with it, considerable profits.
