The Bridge (SM) Second Mortgage with No Monthly Payments and No Interest EVER – Is Unmatched by ANY Mortgage Product on the Market
United States of America (Press Release) December 19, 2007 --
ATLANTA, GA, Dec. 17, 2007 – Almost 2 million financially-distressed American homeowners “were” hoping to get some relief from the Bush administration’s interest rate freeze plan for sub-prime mortgages that are scheduled to rise over the next 2 years. As the industry continues to disclose and respond, the harsh reality is clear; the calculations of experts suggest that at a minimum, only 6% of the exposed are eligible to benefit from the plan. However, as admirable and swift as President Bush’s influential response was, the real story is not about the saved but the 1.8 million homeowners who will be subject to foreclosure. The true story also overlooks a chapter about those who remain ashore driving financial vehicles with only an inch to navigate the on-coming traffic of life and the mountain-sides of today on the two-lane highway to higher rates. Do not be fooled: we are in the eye of the storm.
As a result, Archie Mae, Inc., an Atlanta-based developer of financial products and educational services announced today an enhanced version of its flagship no monthly payment, no interest ever 2nd mortgage product called, The Bridge (SM), in response to President Bush’s plan and the Senate’s FHA modernization bill.
“The inability to make payments is not the sole issue as it is a symptom of a deeper problem. A major root cause of our current situation is that there is still too much debt in American households, who continue to spend more than they earn- exacerbated by loose credit card and mortgage underwriting. To truly help consumers, the mortgage industry should finally embrace a new win-win way of thinking about mortgage origination which focuses on fine-tuning standards plus eliminating interest rates and monthly payment requirements on second mortgages” said Kelly Robinson, Sr., Co-Founder and CEO of Archie Mae. Any new product should have the consumer’s best interest at heart – long term. He said, “By using a product such as The Bridge (SM), immediate and material monthly relief involving potentially thousands of dollars in annual cash savings can be re-allocated to pay down other debt, open up savings or investment accounts or even make deferred purchases or charitable donations”.
The Bridge(SM) is a patent-pending, no monthly payment, no interest ever 25% second lien where an annual appreciation rate (up to a 4% cap) is applied instead of an interest rate which works for purchase or refinance transactions. The loan’s term is the same as the 75% first mortgage. Plus, consumers have to income qualify for 100% of the home’s value. On commercialization, loan buyers such as investment banks, REO and pension funds as well as international investors and sovereign trusts are expressing interest from recent exposure to the product’s hedge benefit, consumer demand, solid yield opportunity and new liquidity option not available in the first release.
Robinson expressed “the administration’s plan stops the bleeding and the legislative bill adds stitches -- but a more permanent, rehabilitative industry solution is needed. The Bridge (SM) is the answer”. The Fed Chair Ben Bernanke released a letter to Sen. Charles Schumer, D-NY in August where he called for creative thinking and suggested consideration of separate or collaborative private and public sector development of “a broader range of mortgage products” with appropriate features which might have for example “shared appreciation provisions” to improve affordability and help get the nation out of its current sub-prime mess.
Archie Mae Introduces The Bridge (SM) – page two
The Bridge (SM) is positioned as a natural next step for the nation at large. “The understandably strict guidelines of the current plan can only serve as a strategically thrown rope in the ocean from a tug boat” said Rhenardo Worrell, Co-Founder and chief product officer of Archie Mae. He said, “We have built The Bridge (SM) as an aircraft carrier where nets can be thrown from every side giving true hope to homeowners. An appropriate answer exists for today’s time. An industry-wide adoption of The Bridge (SM) like reverse mortgages could be made available to both existing and prospective homeowners who desire not to have all their cash tied up in their homes”. If, in addition to Option ARM loans, a product like The Bridge (SM) which is interest rate insensitive was available three years ago during the boom, then it is safe to surmise our crises today would be non-newsworthy or perhaps non-existent. However, the mortgage industry is cyclical so a second chance comes but we must do the right thing. History has shown time again that true innovation comes in times of crises- whether at a national or industrial level.
In an independent study published earlier this year by The Fannie Mae Foundation entitled Shared-Equity Mortgages, Housing Affordability, and Homeownership, it was suggested that The Bridge’s (SM) product type was seen as a viable long-term affordability solution and could potentially “increase the U.S. homeownership rate by 1 to 1.5%”. Worrell continued, “It will not be strange to see consumers self-select into The Bridge (SM) in lieu of an ARM. Over time, there may be a Fixed Rate Class and an Appreciation Rate Class. As consumers become aware of lenders offering The Bridge (SM), you’ll see entire portfolios of 80-20 and 80-10-10 piggy back loans as well as Option-ARMs being refinanced. You’ll also see renters finally make the leap with confidence since the product will improve their disposable income as they realize the American Dream”.
Notwithstanding, empowerment from The Bridge (SM) or any new loan program without education is not optimal. Archie Mae is also unveiling its Literacy-To-Legacy (SM), 5-year financial education program done in conjunction with the Archie Mae Foundation. As opposed to sending participants of The Bridge (SM) a billing statement, homeowners would receive an education statement for 60 months covering money – management, growth, diversification, protection and transference topics. Robinson says “Archie Mae is committed to helping people get and keep their home and continuing financial education, not just one time disclosures – it is the key”. To build consumer awareness, The Archie Mae Foundation and a set of corporate sponsors will host a 30 city tour involving a homeownership education symposium targeting consumers beginning in Spring of 2008.
###
About Archie Mae, Inc.
Archie Mae, Inc., an Atlanta-based company, which was founded on September 11, 2001, is poised to emerge as a national marketer and facilitator of providing relief from mortgage debt associated with the American Dream. Archie Mae’s founding was based upon the sole purpose of serving the American public in a way that facilitates access to that Dream without excess debt. Archie Mae accomplishes this by developing financial and educational services that enable homeownership for families at most income levels—whether low-to- moderate, who are traditionally locked out of homeownership, as well as middle-to-upper, who experience cash flow challenges—it's all about liquidity. Since Archie Mae is, by design today, not licensed as a lender nor broker, it assists consumers purchasing or refinancing a home by licensing “consumer demanding” private label products to national lenders or municipalities and agencies then acts as a supplemental conduit to facilitate the packaging of those loans for sale to investors. The Bridge (SM), Archie Mae’s flagship product, is a 25 percent second mortgage which has no monthly payments and no interest ever. More information regarding Archie Mae or its products and services can be found on the Internet at www.archiemae.com.
As a result, Archie Mae, Inc., an Atlanta-based developer of financial products and educational services announced today an enhanced version of its flagship no monthly payment, no interest ever 2nd mortgage product called, The Bridge (SM), in response to President Bush’s plan and the Senate’s FHA modernization bill.
“The inability to make payments is not the sole issue as it is a symptom of a deeper problem. A major root cause of our current situation is that there is still too much debt in American households, who continue to spend more than they earn- exacerbated by loose credit card and mortgage underwriting. To truly help consumers, the mortgage industry should finally embrace a new win-win way of thinking about mortgage origination which focuses on fine-tuning standards plus eliminating interest rates and monthly payment requirements on second mortgages” said Kelly Robinson, Sr., Co-Founder and CEO of Archie Mae. Any new product should have the consumer’s best interest at heart – long term. He said, “By using a product such as The Bridge (SM), immediate and material monthly relief involving potentially thousands of dollars in annual cash savings can be re-allocated to pay down other debt, open up savings or investment accounts or even make deferred purchases or charitable donations”.
The Bridge(SM) is a patent-pending, no monthly payment, no interest ever 25% second lien where an annual appreciation rate (up to a 4% cap) is applied instead of an interest rate which works for purchase or refinance transactions. The loan’s term is the same as the 75% first mortgage. Plus, consumers have to income qualify for 100% of the home’s value. On commercialization, loan buyers such as investment banks, REO and pension funds as well as international investors and sovereign trusts are expressing interest from recent exposure to the product’s hedge benefit, consumer demand, solid yield opportunity and new liquidity option not available in the first release.
Robinson expressed “the administration’s plan stops the bleeding and the legislative bill adds stitches -- but a more permanent, rehabilitative industry solution is needed. The Bridge (SM) is the answer”. The Fed Chair Ben Bernanke released a letter to Sen. Charles Schumer, D-NY in August where he called for creative thinking and suggested consideration of separate or collaborative private and public sector development of “a broader range of mortgage products” with appropriate features which might have for example “shared appreciation provisions” to improve affordability and help get the nation out of its current sub-prime mess.
Archie Mae Introduces The Bridge (SM) – page two
The Bridge (SM) is positioned as a natural next step for the nation at large. “The understandably strict guidelines of the current plan can only serve as a strategically thrown rope in the ocean from a tug boat” said Rhenardo Worrell, Co-Founder and chief product officer of Archie Mae. He said, “We have built The Bridge (SM) as an aircraft carrier where nets can be thrown from every side giving true hope to homeowners. An appropriate answer exists for today’s time. An industry-wide adoption of The Bridge (SM) like reverse mortgages could be made available to both existing and prospective homeowners who desire not to have all their cash tied up in their homes”. If, in addition to Option ARM loans, a product like The Bridge (SM) which is interest rate insensitive was available three years ago during the boom, then it is safe to surmise our crises today would be non-newsworthy or perhaps non-existent. However, the mortgage industry is cyclical so a second chance comes but we must do the right thing. History has shown time again that true innovation comes in times of crises- whether at a national or industrial level.
In an independent study published earlier this year by The Fannie Mae Foundation entitled Shared-Equity Mortgages, Housing Affordability, and Homeownership, it was suggested that The Bridge’s (SM) product type was seen as a viable long-term affordability solution and could potentially “increase the U.S. homeownership rate by 1 to 1.5%”. Worrell continued, “It will not be strange to see consumers self-select into The Bridge (SM) in lieu of an ARM. Over time, there may be a Fixed Rate Class and an Appreciation Rate Class. As consumers become aware of lenders offering The Bridge (SM), you’ll see entire portfolios of 80-20 and 80-10-10 piggy back loans as well as Option-ARMs being refinanced. You’ll also see renters finally make the leap with confidence since the product will improve their disposable income as they realize the American Dream”.
Notwithstanding, empowerment from The Bridge (SM) or any new loan program without education is not optimal. Archie Mae is also unveiling its Literacy-To-Legacy (SM), 5-year financial education program done in conjunction with the Archie Mae Foundation. As opposed to sending participants of The Bridge (SM) a billing statement, homeowners would receive an education statement for 60 months covering money – management, growth, diversification, protection and transference topics. Robinson says “Archie Mae is committed to helping people get and keep their home and continuing financial education, not just one time disclosures – it is the key”. To build consumer awareness, The Archie Mae Foundation and a set of corporate sponsors will host a 30 city tour involving a homeownership education symposium targeting consumers beginning in Spring of 2008.
###
About Archie Mae, Inc.
Archie Mae, Inc., an Atlanta-based company, which was founded on September 11, 2001, is poised to emerge as a national marketer and facilitator of providing relief from mortgage debt associated with the American Dream. Archie Mae’s founding was based upon the sole purpose of serving the American public in a way that facilitates access to that Dream without excess debt. Archie Mae accomplishes this by developing financial and educational services that enable homeownership for families at most income levels—whether low-to- moderate, who are traditionally locked out of homeownership, as well as middle-to-upper, who experience cash flow challenges—it's all about liquidity. Since Archie Mae is, by design today, not licensed as a lender nor broker, it assists consumers purchasing or refinancing a home by licensing “consumer demanding” private label products to national lenders or municipalities and agencies then acts as a supplemental conduit to facilitate the packaging of those loans for sale to investors. The Bridge (SM), Archie Mae’s flagship product, is a 25 percent second mortgage which has no monthly payments and no interest ever. More information regarding Archie Mae or its products and services can be found on the Internet at www.archiemae.com.
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