Reliant Home Warranty Corp. of Toronto, Canada, announced today underwriting approval to offer North America’s first 50-year amortization program for non-prime high-ratio mortgages.
Reliant also announced the amortization on a 5-year blended program (3 years interest-only and 2 years principal and interest) will be 53 years. Both products will be launched this spring, according to the announcement.
“This innovative action by Reliant will allow mortgage customers the ability to make the most use of their hard-earned income and make housing more affordable to the consumer,” stated Boyd Sousanna, President and CEO of Reliant, in a statement.
Reliant continues to develop the most innovative loans in the marketplace and is the only mortgage lender who will offer a job loss protection guarantee.
“Our innovative style and attention to growing consumer needs made this an easy decision to make. This addition to our suite of products allows clients to chose a 50-year amortization schedule in 5-year increments downward to tailor a mortgage to their needs,” Sousanna stated.
Reliant will securitize its mortgages by accessing several separate sources of capital, according to the company announcement. Mortgages will be sold to institutional investors and securitized “through the usual securitization conduits,” the company announced. Reliant’s loans now will include up to 50-year amortization, blended programs, high-ratio non-prime programs, and interest only, and all products include job-loss-protection insurance.
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