Risk Reduction Mortgage Corp.
, a startup fintech mortgage product provider headquartered in Manchester, N.H., has announced plans to make its Risk Reduction Mortgages available on a nationwide basis in 2019.
According to the company, the new product will eliminate the need for private mortgage insurance, HFA mortgage assistance and piggy-back second mortgages for borrowers who cannot afford the standard 20 percent downpayment. The product also includes a diversification benefit that enables homeowners to reduce their home equity value risk and obtain a similar reduction in foreclosure risk while providing creditors with up to a 70 percent reduction in systemic credit losses, the company added.
"Our new mortgage product is the most important financial innovation since securitization," says Marc Biron, RRMC Founder and CEO. "If available at the time, there is strong evidence they would have helped avert the 2008 meltdown."