Get up to $500k from your home equity.
Point chooses RoundPoint as servicing partner
Charlotte, NC, Jan. 19, 2017 – RoundPoint Mortgage Servicing Corporation, one of the nation’s largest non-bank mortgage servicing companies, announced today that it has been selected as the sole servicing partner for Point’s growing portfolio of fractional residential real estate assets. Point is the first financial technology platform that allows homeowners to unlock their home equity wealth without taking on new debt.
Under the agreement, RoundPoint Mortgage Servicing, a top-20 non-bank mortgage servicer and a prominent provider of mortgage liquidity, will manage assets acquired by Point. Homeowners sell Point a fractional interest in their properties in exchange for a tax-deferred lump sum with no interest rates or monthly payments. Within ten years, the homeowner exits the agreement by selling their home or buying out Point. Most homeowners use the capital to diversify their wealth, invest in their businesses, renovate their homes, or pay off debts.
Point provides homeowners with a brand new finance solution that aligns homeowner and investor interests. For the first time, investors can buy fractional interests in owner-occupied residential real estate through a digital platform. As more lenders grapple with creating products that meet the needs of varying borrower types, Point is one of the more innovative FinTech firms to have developed a compelling product for homeowners to tap their real estate equity. “This type of innovation is critical to the continued growth of the housing market,” said Kevin Brungardt, CEO of RoundPoint Mortgage Servicing. “We are delighted to have been selected as Point’s servicer, and we are looking forward to a long and successful relationship.”
“As demand for our product continues to grow, it is clear that both the extent and diversity of RoundPoint’s asset management expertise make it the perfect partner for our unique product,” said Eddie Lim, CEO of Point. “RoundPoint shares our mission to align our interests with homeowners and provide homeowners with a simple, fast and efficient experience, and our partnership enhances our ability to do just that.”
Leading the integration between the two companies, Point’s Product Manager, Elissa Kline, said, “It was important that we chose a partner that has both a strong reputation on Wall Street and the technical ability to work with a whole new asset class. RoundPoint is unique in that it meets these two requirements, and we’re excited to scale our businesses together.”
Brad Johnson, RoundPoint’s COO, added, “Our operational infrastructure, capacity and technology solutions provide a solid ‘back-office’ platform for Point.”
RoundPoint Senior Vice President of Business Development Allen Price commented, “Our ability to efficiently service this product significantly reduces Point’s servicing, operational and compliance related risks, while allowing them to focus on product innovation and distribution.”