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What is Mortgage Harmony Corp.?
Founded in December 2008 by Keith Kelly and Bob Catalanotto, Mortgage Harmony creates
mortgage products that are better for the consumer by reengineering how participants
in the residential mortgage value chain are aligned.
What is the Mortgage Harmony Platform?
For credit unions, Mortgage Harmony’s core product, the Harmony Loan™, is a member-initiated,
interest rate-resetting mortgage with a recurring compensation structure to the
financial entities involved in the transaction. Its patented compensation structure
rewards participants comparably to the traditional process yet enables the consumer
to remain in the same mortgage. The Harmony Loan also eliminates the usual transaction
costs at refinance, which saves the member money and translates into a lower rate-resetting
interest rate.
For banks, the Mortgage Harmony’s core product, the Harmony Loan, is a consumer-initiated
interest rate-resetting mortgage with a recurring compensation structure to the
loan officer. Its patented compensation structure rewards loan officers comparably
to the traditional process yet enables the consumer to remain in the same mortgage.
The Harmony Loan also eliminates the usual transaction costs at refinance, which
saves the consumer money and translates into a greater yield for the banker. The
Harmony Loan is engineered to increase customer deposits, and recruit and retain
top loan officers.
What is the term for the Harmony Loan™?
The Harmony Loan is offered as 10/1, 7/1 5/1 fixed period ARM and a 30-year fixed
rate mortgage.
How does a portfolio lender finance (match duration) the purchases
of the Harmony Loan?
Purchases can be financed through existing bank or credit union funding sources.
Callable debt is recommended to ensure asset/liability match.
How are these loans serviced?
Mortgage Harmony offers a Sub Service Provider (SSP) platform. For credit unions
or banks electing this service, Mortgage Harmony manages all aspects of servicing
requirements such as principal and interest distribution, tax and insurance distribution,
loan officer compensation management, accounting/reporting, and loan modification
processing.
How are the loan officers compensated?
Loan officers are compensated in the traditional manner at origination. At the time
the Harmony Loan resets, a reoccurring compensation stream is triggered to the loan
officer.
How are the loan officers trained?
Mortgage Harmony provides product and platform training to its customers’ sales
forces. The training includes educating the loan officer on the characteristics
of the Harmony Loan product as well as its benefits to the homeowner and loan officer.
The loan officer training is provided on location at the customer’s site. It is
presented by experienced mortgage industry professionals fully versed in the complexities
and components of the Mortgage Harmony Platform.
What marketing materials are available?
Mortgage Harmony provides detailed marketing information that describes the Harmony
Loan product, the consumer benefits, and compares and contrasts it with the mortgage
refinance consumer option. Additional market materials include flyers and ads, brochures,
statement stuffers, thank you notes and sample rate sheets.
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Why do we need Mortgage Harmony in order to offer this product?
New products demand time, human resources, and capital. Our platform affects loan
officer compensation, servicing and accounting. Rather than expending time, human
resources, and significant capital which typically takes 18 months to 24 months
to launch a new product, Mortgage Harmony delivers a “one stop” shop which handles
all components necessary to rollout the Harmony Loan/MARS platform. In addition
to the analytics and the patented loan officer compensation methodology, Mortgage
Harmony delivers the Harmony Loan/MARS platform with sales materials, legal documents,
loan officer training and support, and loan servicing. This end-to-end solution
can be implemented in a matter of weeks.
What is the consumer demand for the Harmony Loan in a downward
trending interest rate environment?
The introduction of a consumer-initiated interest rate-resetting mortgage in a downward
trending interest rate environment will provide your sales force with a much-needed
consumer-focused product. The companies that adopt the new Mortgage Harmony platform
will demonstrate leadership by initiating positive change for their customers and
the mortgage finance industry.
What does the credit union gain from offering the Harmony Loan?
The Harmony Loan is a consumer-oriented product that eliminates the usual transaction
costs at refinance. The benefit to the member translates into greater loyalty to
the credit union. The Harmony Loan is engineered to increase customer deposits,
and provide improved member benefits. Longer average loan life means larger revenue
streams for portfolio lenders, closer relationships to members, and increased representative
and member satisfaction.
What does the bank gain from offering the Harmony Loan?
The Harmony Loan is a consumer-oriented product that eliminates the usual transaction
costs at refinance, with a gain-improving yield to the investor. The benefit to
the consumer translates into loyalty to the bank. The Harmony Loan is engineered
to increase customer deposits, and recruit and retain top loan officers. Longer
average loan life means larger revenue streams for portfolio lenders, closer relationships
to customers, and increased representative and client satisfaction.
Why should I offer this product and keep the loans on my books
when I can invest in higher yielding assets?
High-yielding assets generally equate to higher risk. The Harmony Loan delivers
higher returns over time and requires little to no hedging cost.
Do I need an origination arm to offer the Harmony Loan or does
Mortgage Harmony offer a distribution channel?
The Harmony Loan can be offered through the existing origination arm of the credit
union or bank or through Mortgage Harmony’s origination network.
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