“Newfi has created a groundbreaking new offering that meets homeowner needs for liquidity by combining the benefits of home equity sharing options, such as no monthly payments, with a traditional mortgage,” Newfi CEO Steve Abreu said in a media release. “Our goal is to simplify the mortgage process in ways that give financial control back to homeowners.”
EquityChoice is also designed to be advantageous for investors. It is REMIC-eligible, making it an appealing option for broad market acceptance in the coming years. Additionally, Newfi’s channel partners and service vendors will have the opportunity to generate revenue from this new product.
Key benefits for homeowners using EquityChoice include access to their home equity at a below-market fixed-interest rate, the ability to retain their original low-interest primary loans, immediate access to capital without affecting monthly cash flow, and standard mortgage loan terms with built-in safeguards.
Pat Doyle, president of Newfi Investment Group and co-creator of EquityChoice, commented on the launch: “Homeowners’ needs have evolved over the past 30 years, but the mortgage industry has not offered new solutions since 1991. We’re excited to deliver an innovative new solution that gives homeowners a smarter and safer way to manage their overall wealth while creating an alternative way for investors to gain exposure to the housing sector.”
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