Unison Home Ownership Investors (Unison) is a home ownership investment company based in San Francisco, California.
Unison's basic business mechanic differs from the traditional home equity loan in that it does not incur debt because there is no monthly payment or interest accrued. Rather, a home ownership investment is a shared piece of high-risk capital between the lender and the homeowner. If the home's value decreases, the Unison investor shares the risk. Unison is the first long-term financing provider in the United States of this kind.
Unison made its first home ownership investment in 2007 and has since expanded nationwide and received several finance industry awards.
Video Unison Home Ownership Investors
History
Current company chairman Thomas Sponholtz founded the company that is now known as Unison in 2004, but the company did not start becoming involved in home ownership investment until 2007. Previously, Sponholtz served as co-head of active fixed income for Barclays Global Investors and helped to launch the same company's first Fixed Income iShares (ETF).
Sponholtz founded Unison as a way to connect institutional investors to local real estate agents and home buyers who didn't have the capital required to purchase a home and didn't want to take out loans, make monthly payments, or incur debt. Another reason Sponholtz cites for starting the company was to expose institutional fund managers to the large-scale real estate market. Jim Riccitelli joined Unison as co-CEO several years later and serves as head of the company's customer education program.
On July 11, 2016 the company announced that it would be launching its down payment funding in combination with Guild Mortgage loans in Washington. On August 1, 2016 they announced that they expanded the availability to consumers in Oregon and California.
On December 5, 2016 FirstREX changed its name to Unison Home Ownership Investors.
On February 1, 2017 the company was featured in HousingWire, highlighting additional states of operation.
On February 21, 2017 then Prosper Marketplace President Ron Suber joined the company as an investor and strategic advisor.
On February 22, 2017 the company announced over 300 million in total capital raised.
In addition to their San Francisco headquarters, the company currently has one other location in Detroit.
Maps Unison Home Ownership Investors
Awards and Recognition
Since the company's founding in 2004, Unison has won several awards in the business sector. These include two runner-up finishes and one "Best of Show" award at the 2017 Benzinga Global Fintech Awards, which is held to "celebrate the innovation that's transforming the finance industry", and another "Best of Show" award at FinovateSpring 2017, an annual financial technology conference.
The company's co-CEO's were a part of Bank Innovation's yearly 10 most innovative CEO's in banking for 2017.
Business Mechanisms
Unison operates under two mechanisms, Unison HomeBuyer and Unison HomeOwner.
The first, HomeBuyer, funds half of a 20 percent down payment for a home buyer in combination with a traditional mortgage, while the HomeOwner program is geared toward current homeowners to tap into their home equity to pay for other expenses. Both programs remain interest-free without monthly payments for 30 years.
The company, in return, shares 35 percent of the appreciation in the home either when it is sold, after 30 years, or when the borrower decides to pay back the investment. Conversely, if the home depreciates, the company shares in 35 percent of the loss. There is a minimum of 3 years required in order to realize the property appreciation.
The company's programs look to connect pension funds and institutional investors and their private risk capital with the growing number of retiring baby boomers with inadequate savings, college graduates with student loan debt, first time home buyers, and Millennials.
In 2017 the average homebuyer under 35 spent 8% on a down payment. Unison's business model involves splitting a 20% down payment with homebuyers.
Unison has relationships with Guaranteed Rate, Guild Mortgage, First California Mortgage, HomeStreet Bank, RPM Mortgage, Freddie Mac and others.
Unison programs are currently available in Arizona, California, Connecticut, Oregon, Washington, Illinois, Massachusetts, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington, DC.
References
External links
- Official website
Source of the article : Wikipedia
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