In the growing spirit of making housing more affordable to underserved communities, Homepoint, the country’s third-largest wholesale mortgage lender, said it will reduce the price of its conforming conventional loans by 75 basis points for potential homebuyers.
Company officials said the offer also is intended to raise consumer awareness about the benefits of working with independent mortgage brokers.
The bonus pricing will be available to homebuyers in specific ZIP codes in 20 states, where Homepoint identified a higher percentage of loans originated to people below the area median income (AMI). Borrowers in those areas will be eligible for the pricing bonus, at no additional cost to them, by using mortgage brokers who are approved Homepoint partners.
“Our goal is to enhance access to affordable homeownership by opening more consumers’ eyes to the savings that are available when working with a mortgage broker,” said Phil Shoemaker, president of originations at Homepoint. “Brokers increase accessibility to affordable homeownership no matter where interest rates are because of choice. Brokers can choose a lender that best serves their customers’ individual needs instead of being limited to one lender that may not be the best option. This 75-bps pricing bonus amplifies that broker advantage.”
Homepoint’s 75-basis-points pricing bonus is being made available in specific ZIP codes in 20 states: Alabama, Connecticut, Georgia, Iowa, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Nebraska, New York, Ohio, Oklahoma, Pennsylvania, Texas, and Virginia.
Interested homebuyers in those states should contact a local independent mortgage broker to determine how, or if, this applies to them, in terms of potential savings on closing costs and monthly payments.
Company officials said that, according to 2021 Home Mortgage Disclosure Act (HMDA) data, mortgage brokers save consumers an average of over $9,400 on a loan, compared to larger direct-to-consumer lending corporations.
This pricing bonus highlights Homepoint’s status as a consumer-friendly lender for borrowers seeking lower loan amounts, the company said. Of the top five wholesale mortgage lenders in the country, Homepoint is one of only two that does not penalize borrowers with a price hit on loan amounts below $100,000.
