I’m missing the point of why any buyer would pay them 1.95% for what amounts to mortgage pre-approval. If your mortgage ends up declined, they buy the house for you and let you rent it. However, if you still can’t get approved a year later then you pay a 2.95% fee to them. It seems like they are re-branding lease option.
I don’t agree at all that it’ll let buyers compete with cash offers. That’d only work if they provided cash for a quick closing then when the buyer gets the mortgage they payback Ribbon. They only provide cash for closing if the mortgage gets declined. Buyers with Ribbon will still have 30-day close which won’t compete with cash offers.