MortgageFintech

HSBC partners with RateReset to offer instant interest rate adjustments on ARMs

Launches “EasyReset” to reset ARM rates

HSBC Bank USA, the U.S. arm of HSBC Group, launched a digital mortgage platform last year with the help of Roostify to help its customers obtain a new mortgage, but it looks like the bank isn’t done advancing its digital capabilities.

HSBC Bank announced Thursday that it is partnering with RateReset to allow customers with an adjustable-rate mortgage to reset their interest rate with the “click of a button.”

Adjustable-rate mortgages, as the name implies, do not have a fixed interest rate over the life of the loan. At some point after an initial term, the interest rate resets to a new one, usually based on the market rates at the time.

And now, HSBC customers with an ARM can easily adjust their interest rate.

Through the partnership, HSBC is using RateReset’s “KNOCK KNOCK” platform, which is being branded as “EasyReset” for HSBC’s use.

According to the bank, when a customer is eligible for a rate reset, an offer is automatically sent to the borrower via email. The offer can then be reviewed, signed and accepted in less than 90 seconds, the bank said.

“EasyReset provides us with a digital solution that helps streamline the customer experience and allows the bank to retain and recapture loans,” said Raman Muralidharan, head of mortgage for HSBC’s Wealth and Personal Banking business.

HSBC operates bank branches in California; Connecticut; Washington, D.C.; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington.

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