CMG Financial is offering a new affinity marketing portal on its crowdfunding platform for down payments and positioning it as a way for employers to retain millennials.
The platform could be particularly attractive to millennials, who represent the largest generation in the workforce, because they tend to be renters who identify the down payment as the biggest obstacle to homeownership.
"More than ever, employers are looking for ways to retain and attract the best and brightest talent and millennials are looking for the lifestyle perks that will help them achieve their goals. The affinity portal helps to bridge that gap by giving employers the ability to give their employees the benefits that matter most to them," said Chris George, president of CMG Financial, in a press release.
"A typical campaign can cut an employee's down payment burden in half in many cases," he added.
CMG has been testing its crowdfunding platform, HomeFundMe, with Fannie Mae and Freddie Mac. CMG is currently funding all loans that have down payments sourced on the platform and selling the mortgages to the agencies.
Borrowers are eligible for a lender contribution of $2 for every $1 crowdfunded if they have a below-average median income. If they have higher incomes, they are eligible for the lender contribution subject to a cap of $2,500 or 1% of the purchase price, whichever is lower.
The new portal also allows employers to opt to match donations in any amounts. Users will not be charged any taxes, fees or fundraising commissions.