No interference with stakeholders
He explained it by illustrating the various stakeholders involved in a transaction: “Currently, you’ve got realtors involved, buyers involved, sellers involved, lenders involved. Every stakeholder in that transaction has their own respective interest. All the players except for Fortuna have an interest that necessarily conflicts with one of the existing stakeholders. In other words, Fortuna has no interest in coming in and taking on the listing or providing the financing or taking the role of any other stakeholder in the transaction.”
Meadow takes the helm of the new firm with 20-plus years of mortgage industry experience, primarily within independent mortgage banking. Most recently he served as president of Celebrity Home Loans, where he and the executive team led the organizational growth from just under $1 billion in origination volume in 2018 to more than $7 billion before stepping away to lead Fortuna Finance in October of 2021, according to company literature.
Since the homebuyer’s current home is ready to be sold and there are no contingencies, government-sponsored entities such as Fannie Mae and Freddie Mac, as well as many non-agency investors, typically allow underwriters to ignore the buyer’s current mortgage debt when being approved for a new mortgage, Meadow noted.
Sold within 90 days
Fortuna’s Guaranteed Backup Contract ensures the client’s current home is sold within 90 days, during which time the real estate agent can stage and sell their client’s home at the highest possible price, Meadow noted. If the home does not sell after 90 days, Fortuna buys and relists the home for sale with the current agent, he added. When the home is sold, 90% of the proceeds go back to the original homeowner, as Fortuna only keeps enough to cover the costs of the transaction, he said.
Just out of beta testing of the new business, Fortuna has already helped some 20 homeowners streamline the process of buying a new home, Meadow said.