January 11, 2011 (Jeff Alan)
The Credit Union Mortgage Association (CUMA) announced that it has closed the first HarmonyLoan for a member of the Agriculture Federal Credit Union in conjunction with Mortgage Harmony Corporation. The HarmonyLoan allows homeowners an automatic rate-reset modification option, and no additional paperwork. The consumer manages their own loan and decides when they want to refinance. Just a “click” and the loan is reset.

The HarmonyLoan is a consumer-initiated interest rate-resetting mortgage that aligns the interests of the consumer and credit union by allowing homeowners to adjust their interest rates with the market without the expense and hassle of a traditional refinance or new mortgage. The consumer does not incur any costly refinance fees, no lender fees, no attorney fees, and they will continue to reduce their principal balance as schedule.

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.

Harmony loans are now available as 5/1, 7/1, 10/1 adjustable rate mortgages and 15 year fixed rate mortgages and were created with the objective of minimizing the pre-payment turnover that causes loss to market share, service stream and customer loyalty.

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.

“The Harmony loan removes the inefficiencies of the mortgage process that have made putting a new loan on the books so costly,” said Scott Toler, president and chief executive officer of CUMA. “We are excited to offer an innovative mortgage product that gives a new meaning to consumer-friendly. Through access to state-of-the-art, 24/7 Web interface, consumers are able to monitor and reset their mortgage rate with literally one click.

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.”

It’ll be interesting to see what the big banks think about that.

Tags: mortgage loan, automatic rate-reset, refinance fees, lender fees, attorney fees, customer loyalty, service stream, mortgage products, interest rates, harmonyloan