Newrez Gives Buyers More Purchasing Power with Launch of 40-year Fixed-Rate Interest Only Non-QM Option

Rhea-AI Summary

Newrez LLC has launched a new 40-year fixed-rate interest-only (IO) option in its Smart Series non-qualified mortgage (Non-QM) product line. This product is aimed at increasing purchasing power for homebuyers by offering lower monthly payments through a 40-year term with interest-only payments for the first ten years. Available across all lending channels, this initiative reflects Newrez's commitment to cater to non-traditional borrowers and enhance affordability in the housing market, helping prospective homeowners access more competitive financing options.

Positive

• Introduction of a 40-year fixed-rate interest-only option enhances homebuyer purchasing power.
• Product allows for lower monthly payments, aiding borrowers priced out of the market.
• Available across all lending channels, increasing accessibility.
• Focus on non-traditional borrowers expands market opportunities.

Negative

• None.

FORT WASHINGTON, Pa.--(BUSINESS WIRE)-- Newrez LLC (“Newrez”, the “Company”), a national mortgage lending and servicing organization, announced today a major upgrade to its Smart Series non-qualified mortgage (“Non-QM”) product line up with the launch of its 40-year fixed-rate interest-only (IO) option.

Newrez’s 40-Year IO option is designed to increase purchasing power for homebuyers by offering a 40-year loan term with interest-only payments for the first ten years. Developed for borrowers and investors that have been priced out of today’s housing market, the option allows borrowers to have more affordable monthly payments by offering a longer loan term.

The 40-Year IO option applies to all Smart Series Non-QM products and is now available across each of the Company’s lending channels (Retail, Wholesale, Correspondent, Joint Venture, and Direct to Consumer).

As a lender, Newrez maintains its steadfast focus on its Smart Series Non-QM products, which affords non-traditional borrowers the opportunity to buy their homes at fair price points through expanded guidelines, as it prioritizes product development efforts for borrowers whose needs are often overlooked by other non-agency products.

“We are continually enhancing and updating our Smart Series products to ensure we are providing competitive Non-QM financing options for our clients in current market conditions,” said Jeff Gravelle, Co-head of Production at Newrez. “Our Smart Series products, like the 40-year IO, are developed to meet the needs of today’s borrowers and open the door to thousands of prospective homeowners.”

For more information about Newrez’s specialized Non-QM products, read more about its Smart Series: https://www.newrez.com/blog/mortgage-101/smart-series-non-qualified-mortgages/.

About Newrez

Newrez is a leading mortgage company that combines mortgage origination and servicing to provide a customer-first journey and help our customers make smart moves throughout the lifetime of their mortgage loans. Differentiated by its origination platform, the Company provides customers with unparalleled lending options to purchase and refinance. Its servicing business services loans on behalf of Newrez customers and includes third-party servicing brand, Shellpoint Mortgage Servicing. Founded in 2008, Newrez is headquartered in Fort Washington, Pennsylvania and is a member of the Rithm Capital family of Companies.

© 2022 Newrez LLC, 1100 Virginia Dr., Ste. 125, Fort Washington, PA 19034. 1-888-673-5521. NMLS #3013 (www.nmlsconsumeraccess.org). Doing business as Newrez Mortgage LLC in the state of Texas. Alaska Mortgage Lender License #AK3013. Arizona Mortgage Banker License #919777. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act. Loans made or arranged pursuant to a California Finance Lenders Law license. Massachusetts Lender #ML-3013. Licensed by the N.J. Department of Banking and Insurance. Licensed Mortgage Banker-NYS Banking Department. Additional licenses available at www.newrez.com.

The information contained on, or accessible through, any websites included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005826/en/

PUBLIC RELATIONS:

Mackenzie Coopman

PublicRelations@Newrez.com

Source: Newrez LLC

FAQ

What is Newrez's new mortgage product launched on September 1, 2022?

Newrez launched a 40-year fixed-rate interest-only (IO) option in its Smart Series non-qualified mortgage product line.

How does the 40-year IO mortgage option benefit homebuyers?

It allows for lower monthly payments and increases purchasing power by offering a longer loan term.

Which lending channels offer Newrez's 40-year IO mortgage?

The 40-year IO option is available across all lending channels: Retail, Wholesale, Correspondent, Joint Venture, and Direct to Consumer.

Who is the target audience for Newrez's Smart Series Non-QM products?

The products are designed for non-traditional borrowers, especially those who may be overlooked by other financing options.

What is the significance of the launch for Newrez and its market position?

The launch enhances Newrez's product offerings, making it more competitive in addressing the needs of today's homebuyers.