Connecting Principle
The same philosophy that drives our government reform — eliminate unnecessary intermediaries, reduce cost, increase transparency — applies to the mortgage industry.
Fannie Mae and Freddie Mac back over $5 trillion in mortgages. The current process takes too much time, costs too much, and involves too many parties for what should be a straightforward financial transaction.
Problem
Too many people involved, too much cost incurred, and too much time spent when a property changes ownership or is refinanced.
Proposed Solution (Home Purchases)
FM/FM will remove nearly all barriers by allowing a quick update to the mortgage-backed security with the new owner and terms. Regional subsidiaries handle servicing, title, and appraisal. An online portal and master property database link directly to county records.
Hours
Not weeks — closing timeline
Electronic
Replaces manual processes
One Ledger
Single source of truth
Proposed Solution (Refinances)
A new mortgage product: a secured line of credit with the ability to switch between variable and fixed rates quarterly. The full value of the home is secured — no need for a separate second mortgage or HELOC. Refinancing becomes a rate toggle, not a new loan.
Additional Improvements
- Allow payments via stored card or direct debit
- Flexible payment dates aligned to borrower pay cycles
- Eliminate PMI — fold the risk premium into the interest rate
- Annual no-cost refinance option built into every loan
- Servicing company manages rent collection for investment properties