Mortgage Harmony Corp. Partners With 1st Commonwealth Bank of Virginia to Sell Harmony Loans
Community Bank Becomes First in the Nation to Offer Interest Rate-Resetting Mortgage
| Source: Mortgage Harmony
TYSONS CORNER, VA--(Marketwire - December 9, 2009) - Mortgage Harmony Corp., a provider of
innovative residential mortgage products, today announced it signed an
agreement with 1st Commonwealth Bank of Virginia that makes the bank the
first to sell the Harmony Loan™, a mortgage designed to adapt to
consumer needs in changing economic environments.
The Harmony Loan also brings a patented, ongoing compensation structure to
the loan officer, which aligns the interests of the consumer, the loan
officer and the bank in a way that is unprecedented in the mortgage
industry. The bank's first Harmony Loan will be originated this week.
"The Harmony Loan is the first product in the mortgage industry that is
truly consumer-centric. In the past, homeowners had to choose between
playing roulette with an adjustable rate loan or refinancing every time
interest rates dropped with a fixed rate mortgage," said Shane Chalke,
president of Mortgage Harmony. "The Harmony Loan adapts to lowering
interest rates without the risk inherent in adjustable rate products. 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."
Designed to bring long-term stability to the housing finance industry, the
product is now available through 1st Commonwealth Bank of Virginia as a
3/1, 5/1 or 7/1 adjustable rate mortgage.
"The Harmony Loan is unique in that it is win-win for everyone: The bank
keeps a loan they might lose to a refinance, the consumer has the
flexibility to change their rate when it goes down, and the loan officer is
assured recurring compensation from the bank," said Ernie Tressler,
president and chief executive officer of 1st Commonwealth Bank of Virginia.
1st Commonwealth Bank of Virginia customers who secure a Harmony Loan will
be able to take advantage of lower interest rates without the effort and
expense of refinancing. They can generally lower their rate as often as
every 120 days with a phone call, assuming their payment history is solid
and they meet the rate reset parameters.
"We believe the Harmony Loan is the first mortgage product that a homeowner
can feel confident will last as long as they stay in their home," said
Craig Chapman, Managing Director, Mortgage Services for 1st Commonwealth
Bank of Virginia. "It's a flexible, durable offering that will enable us
to build stronger relationships with our customers and retain the best loan
officers in the business."
About Mortgage Harmony Corp.
Mortgage Harmony Corp. designs, develops and distributes innovative
residential mortgage products for mid-size and large banks, credit unions
and mortgage companies. Its mission is to create products and services that
properly align the economic incentives of all participants of a mortgage
transaction and bring long-term stability to the housing finance industry.
For more information on Mortgage Harmony and the Harmony Loan™, please
visit www.mortgageharmony.com.
About 1st Commonwealth Bank of Virginia
Founded in February 2009, 1st Commonwealth Bank of Virginia is federally
chartered and serves business and individual customers in the Metropolitan
D.C. area. It provides standard checking and savings accounts, mortgages,
lines of credit, business loans and IOLTAs for lawyers. The most dynamic
community bank in Arlington, 1st Commonwealth Bank of Virginia was started
by seasoned bankers and mortgage professionals to deliver high-quality,
high-touch service to customers in its neighborhood and beyond. For more
information, please visit www.1cbva.com.