Point, a financial technology platform that offers homeowners the opportunity take equity out of their home without taking on new debt, is partnering with Roundpoint Mortgage Servicing, which will service the assets that Point acquires, the companies announced this week.
Point is a shared equity provider. Here’s how it works: Homeowners sell Point a fractional interest in their properties in exchange for a tax-deferred lump sum without interest rates or monthly payments. Within 10 years, the homeowner exits the agreement by either selling their home or buying out Point.
According to Point, most homeowners use the money from Point to “diversify their wealth, invest in their businesses, renovate their homes, or pay off debts.”
Under the terms of the agreement, RoundPoint Mortgage will act as Point’s sole servicer.
“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.”
Point Product Manager Elissa Kline will lead the integration, the companies aid.
“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,” Kline said. “RoundPoint is unique in that it meets these two requirements and we're excited to scale our businesses together.”
Executives at RoundPoint said that the type of fintech innovation that Point is engaging in is what drove them to work with the company.
“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.”