MAXEX, a digital exchange platform for buying and selling residential loans, announced on Wednesday the launch of two new lending programs in collaboration with JPMorgan Chase for green energy home improvements.
The programs include MAXEX Sustainable, which allows borrowers to finance green energy renovations into their 30-year fixed mortgage, and allows for residential solar panels and geothermal units to be amortized in the loan at the point of purchase or refinance.
The company is also offering a “quicker” version of its base program. “MAXEX Sustainable Express” includes the same benefits of the original model, but also has access to Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector Advisor, which the company says will speed up the underwriting process.
Both programs are offered for loan values from $400,000 to $3 million. As part of these programs, JPMorgan will purchase qualifying loans.
“The U.S. lacks sufficient low-cost options to help borrowers finance green energy home improvements such as solar panels and geothermal units, despite increasing consumer demand,” MAXEX said in a statement. “As a result, borrowers are often forced to pursue high interest rate loans with short maturities, utilize costly leasing options, or forego such improvements altogether.”
The company’s latest programs will expand on MAXEX’s Environmental, Social and Corporate (ESG) business line, which launched in December. At the time of launch, the company unveiled products that offered preferred pricing for minority, women and veteran-owned lenders under the same business model, and again with JPMorgan.
“MAXEX is passionate about leveling the playing field for Main Street banks by using our rapidly-growing digital exchange to deliver low-cost capital that drives social impact,” said Tom Pearce, Chairman and CEO of MAXEX. “These ESG programs fill a significant void in the mortgage market by increasing incentives for green energy improvements.”
Much like the rest of the industry, MAXEX experienced a record year in 2020 despite the severe shortfall in liquidity in the non-agency market. According to the company, it achieved more lock volume in the first 11 months of 2020 than it did in the prior three years.
The fintech company shared with HousingWire that “MAXEX has now reached $13 billion in non-agency lock volume and its marketplace has grown to 19 institutional investors and more than 150 bank and non-bank lenders.”