• REZYFi is a real estate-oriented mortgage company servicing the needs of licensed and permitted cannabis companies and owners of real estate who lease to cannabis companies
• The average rate on a 30-year-fixed-rate mortgage, measured weekly, has been declining gradually since October last year, increasing the market for new and refinanced mortgages
• Mortgage refinancing can be a source of capital, presenting an important financing opportunity for business operators in the cannabis space who struggle to access money from traditional banks

In the months since the US average rate on a 30-year-fixed-rate mortgage peaked at more than 7.10% in October last year, the value has been gradually declining. According to Freddie Mac’s weekly mortgage rate survey, the average rate stood at 6.12% as of February 9, 2023, a slight increase from the 6.09% average recorded a week earlier on February 2, 2023 (https://ibn.fm/RIiPO). This general softening has had a ripple effect.

Data from the Mortgage Bankers Association (“MBA”) shows that the decrease in average mortgage rates resulted in a week-over-week increase in mortgage applications for the week ending February 3 (https://ibn.fm/Cp55x). According to the trade group, the Market Composite Index, a measure of the mortgage loan application volume, grew 7.4% on a seasonally adjusted basis and 8% on an unadjusted basis. In addition, the Refinance Index increased 18% from the previous week, while the seasonally adjusted Purchase Index rose 3% from a week earlier (https://ibn.fm/6zcDK).

To put it more concisely, both the purchase and refinance applications increased over this period. In addition, per the MBA, both showed gains in three of the four foregoing weeks because of lower rates. And with experts projecting that the downtrend will continue, the ripple may eventually turn into a large wave. Mike Fratantoni, MBA’s Chief Economist, is quoted in an ABC article as saying that the mortgage rates are expected to end the year closer to 5% rather than the current 6% (https://ibn.fm/uGNQO).

Refinancing at lower mortgage rates presents several obvious benefits to any real estate owners. It helps them lower their monthly payments. For instance, a consumer purchasing a $400,000 home at a 30-year fixed mortgage rate of 6.12% will pay roughly $290 less in monthly mortgage payments than they would have if they had purchased the home in October last year. Additionally, by taking a larger mortgage, owners can access the difference in cash (cash-out refinancing) and direct it to any purpose (https://ibn.fm/Wo4y9). For businesses, the cash-out referencing option can be a source of much-needed capital. And nowhere is this more befitting than in the cannabis space.

Operators within the cannabis industry have long struggled with access to capital in the form of mortgages and loans. This is because most traditional banks and financial institutions, which are insured by the Federal Deposit Insurance Corporation (“FDIC”), are prohibited from offering financial services or loans to cannabis companies. So, the declining average mortgage rates are a boon for business owners in this space, and companies like REZYFi are on standby to help such proprietors.

REZYFi is a growth mortgage origination and specialized financing company in the United States. It provides a variety of real estate-related first and additional mortgage-based financing and project-specific financings, primarily targeting licensed and permitted cannabis companies and owners of real estate who lease to cannabis companies. By leveraging a network of independent brokers and licensed loan officers as well as proprietary loan processing technology, REZYFi is keen on efficiently serving as many clients as possible.

Licensed in 36 states, REZYFi operates through its subsidiaries REZYFi Lending, which addresses emerging real estate-related financing opportunities, and ResMac, Inc, a traditional mortgage origination, correspondent, and servicing business.

For more information, visit the company’s website at www.REZYFi.com.

NOTE TO INVESTORS: The latest news and updates relating to REZYFi are available in the company’s newsroom at https://ibn.fm/REZY

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