Industry-first approach uses behavioral science to reduce financial risk in mortgages by building lender capacity through the power of community
OAKLAND, Calif.–(BUSINESS WIRE)–Sawa Credit Inc., a first-of-its-kind community platform helping underserved borrowers build financial health, today announced it has formed a new partnership with Homepoint, the nation’s second-largest wholesale mortgage lender, to launch the first-ever community platform for mortgage holders.
Consisting of over 200 people across the U.S., the community is a representative sample that is grouped into pods based on common interests including hobbies, geography, occupation, and age bracket. In each pod, participants are able to contribute to a community pot that other members can tap to increase people’s capacity to withstand financial shock. The platform, driven by behavioral science, has been developed in collaboration with Common Cents Lab, the financial research lab of the Center for Advanced Hindsight at Duke University.
“For too long, people have been unfairly judged based on credit score which is an outdated way of judging an individual borrower’s creditworthiness,” said Charles Phillips, CEO at Sawa. “But when you leverage the power of community, a person’s capacity to pay their revolving debts is enhanced by the group multiple times over. We are pleased to partner with Homepoint—the leader in looking after borrowers and helping mortgage holders—and are grateful to Common Cents Lab for embarking on this journey with us as we show the industry that the group is a better bet than the individual.”
“Inflation and elevated interest rates have impacted consumers everywhere, especially people who were already on the bubble of being able to buy a home and make payments consistently,” said Phil Shoemaker, President of Originations at Homepoint. “Sawa’s commitment to supporting and protecting responsible homeowners aligns well with Homepoint’s efforts to promote financially healthy, happy homeownership throughout the country.”
To learn more, visit https://www.sawa.money.
About Sawa Credit Inc.
Sawa is a first-of-its-kind community platform helping underserved borrowers build financial health. We tap the power of community to help users increase their capacity so they can avoid delinquency and defaults and get and stay in their homes — all while reducing risk for lenders and borrowers. Leveraging behavioral science, Sawa is a venture-backed startup founded by industry-leading fintech and business experts. For more information, visit https://www.sawa.money.
Homepoint, a subsidiary of Home Point Capital Inc. (NASDAQ: HMPT), is one of the nation’s leading mortgage originator and servicers, putting people front and center of the homebuying and homeownership experience. The company supports successful homeownership as a crucial element of broader financial security and well-being through delivering long-term value beyond the loan. Founded in 2015 and headquartered in Ann Arbor, Michigan, Homepoint works with a nationwide network of more than 8,700 mortgage broker partners with deep knowledge and expertise about the communities and customers they serve. Today, Homepoint is the nation’s third-largest wholesale mortgage lender and the 7th-largest non-bank mortgage lender. Home Point Financial Corporation d/b/a Homepoint. NMLS No. 7706 (For licensing information, go to: nmlsconsumeraccess.org). Home Point Financial Corporation does not conduct business under the name, “Homepoint” in KY, LA, NY, or WY. In these states, the company conducts business under the full legal name, Home Point Financial Corporation. 2211 Old Earhart Road, Suite 250, Ann Arbor, MI 48105. Toll-Free Tel: 888-616-6866.
Flight PR for Sawa
Brad Pettiford for Homepoint