SOURCE: Mortgage Harmony

Mortgage Harmony

January 04, 2011 10:56 ET

Credit Unions First to Bring Consumer-Focused HarmonyLoan to Market

CUMA & Agriculture Federal CU Close First Innovative Rate-Resetting Mortgage

TYSONS CORNER, VA--(Marketwire - January 4, 2011) - Mortgage Harmony Corp., a provider of innovative residential mortgage products, today announced Credit Union Mortgage Association (CUMA), a full-service mortgage company, has closed the first HarmonyLoan™ for a member of the Agriculture Federal Credit Union (Agriculture Federal CU).

CUMA originates and services loans for its credit union members. Mortgage Harmony formed a partnership with CUMA in September to make the HarmonyLoan available to the association's credit union members based primarily in the Greater Washington, D.C. area. As a result of its partnership with Mortgage Harmony, CUMA was able to implement product development, origination and servicing requirements necessary to close its first HarmonyLoan in less than three months. 

The HarmonyLoan is a consumer-initiated interest rate-resetting mortgage that aligns the interests of the consumer and credit union in a way that is unprecedented in the industry. It allows homeowners to adjust their interest rates with the market without the expense and hassle of a traditional refinance or new mortgage.

"In this new age of mortgage lending, we have to find ways to provide mortgage products that are both lender-friendly and member-friendly. The HarmonyLoan accomplishes this by removing the costly inefficiencies of the mortgage process," said Scott Toler, president and chief executive officer of CUMA. "We are excited to offer our credit unions and their members an innovative mortgage product that gives new meaning to 'consumer-friendly.' Through access to a state-of-the art, 24/7 web interface, credit union members are able to monitor and reset their mortgage rate with literally one click.

"We're excited to be able to offer the HarmonyLoan to Agriculture Federal CU and look forward to providing many more credit unions with all the advantages this flexible mortgage product affords," added Toler.

"The HarmonyLoan gives our members greater economic security by providing the flexibility to manage their own mortgage loan and decide when they want to reset their rate," said Margie Click, president and CEO of Agriculture Federal CU. "They can easily reset their HarmonyLoan without incurring costly refinance fees or going through the hassles of the traditional refinancing process and upon resetting, they have the advantage of an at-market interest rate. I'm thrilled CUMA has enabled us to offer the outstanding benefits of the HarmonyLoan to our members."

"The HarmonyLoan reduces churning within the portfolio, allowing credit unions to keep their valuable investments and member relationships intact while gaining greater returns," said Keith Kelly, chief executive officer and founder of Mortgage Harmony. "The result is an overall stabilization of their book of business and a much more durable long-term investment. We are extremely pleased to be able to offer HarmonyLoan's many unique benefits to credit unions such as the Agriculture Federal CU and their members through our partnership with CUMA."

Mortgage Harmony's mission is to design innovative mortgage products that bring greater continuity to all the parties in the process and minimize the lender's timeline between product development and launch to homebuyers. 

"After the last few years of turmoil, I welcome this new consumer-friendly mortgage option. The HarmonyLoan has tremendous potential to restore consumer confidence in the real estate industry," said Terry Belt, a Realtor with Keller Williams Realty in Vienna, Va. and leader of one of the top 100 Realtor teams in the nation. "With the HarmonyLoan, home buyers are ensured a competitive interest rate. I believe the HarmonyLoan will transform the industry and change the way homebuyers perceive their mortgage."

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. The HarmonyLoan™ is a consumer-initiated interest rate-resetting mortgage with a recurring compensation structure for the loan officer. For more information on Mortgage Harmony and the HarmonyLoan™, please visit www.mortgageharmony.com.

About Credit Union Mortgage Association
 
CUMA is a full-service mortgage company headquartered in Fairfax, Virginia and serving the entire United States. It is owned by credit unions in Virginia, Maryland, Washington, D.C. and Pennsylvania. CUMA has been providing mortgage financing exclusively through credit unions for over 32 years. CUMA has a staff of seasoned mortgage professionals who assist credit union members with decisions on choosing the best loan programs. CUMA provides origination, underwriting, closing and servicing solutions to its credit union members. Find more information at www.cumortgage.net.