Home to Own also was innovative in its private subordinate financing, loan assumability
and secondary market participation.
Even such standard loan features as prepayment protection, assumability
and recourse could become the subject of a misrepresentation claim to the extent underlying provisions are nonstandard.
The transaction was awarded to a balance sheet lender, which not only offered a loan with high proceeds at a very competitive spread, but also was able to address key objectives of the borrower, including prepayment flexibility and assumability
It's my view that this effect is due in large part to the assumability
of MMIF-insured mortgages.
Loan features such as assumability
or convertibility could be added to the profile of desired attributes.