About US
Our recent market surveys to hundreds of US homeowners indicated more than half were very or extremely interested in getting a Risk Reduction Plan
Our financial projections indicate a 70% reduction in portfolio-level credit risk for mortgage backed securities based on Risk Reduction Mortgage-backed homes
Risk Reduction Mortgage Corp. is the inventor of the Risk Reduction Mortgage – the most important financial innovation since securitization. This mortgage product allows homeowners to nationally diversify the value risk on their homes – typically their single largest investment. The astounding diversification benefit, termed “the only free lunch in Economics” – reduces the risk in their home equity by more than 40% and similarly reduces foreclosure risk. Importantly, this reduction in risk results in a reduced interest rate. It is no surprise that 62% of surveyed homeowners are interested in this product – incredible for anovel concept.
Also, the disasters that befell the government sponsored mortgage entities, and especially hard hit geographic areas during the great recession could have been avoided had this product been widely distributed. Countless foreclosures would have been avoided. Much pain will be avoided when Risk Reduction Mortgages are made widely available to borrowers.
We have assembled a highly talented and experienced management team to deliver on the concept and have general concept support from leading academic experts and economists, including a Nobel Laureate.