News From the World Wide Web, Not the Regular Blog

UWM debuts new 75-bps incentive on refis by James Kleimann for HousingWire

HousingWireHousingWire

United Wholesale Mortgage (UWM) is rolling out a new 75 basis-point incentive program for conforming conventional and government-backed rate-and-term refinances.

The program, dubbed “Refi75,” effectively replaces and expands on “Govy 125,” a 125-bps incentive that ended Tuesday for Interest Rate Reduction Refinance Loans (IRRRLs) through the U.S. Department of Veterans Affairs (VA) and Streamline Refinances through the Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA).

“This new incentive gives UWM partners a competitive edge with past clients and the ability to attract new borrowers looking to save on their monthly payment,” the Michigan-headquartered wholesale lender said in a statement on Wednesday. 

“With thousands of borrowers currently eligible to benefit from a refi, Refi75 can make it easier to secure a lower rate and save. This pricing incentive is available on new locks through October 31.”

Per the program requirements:

Lender-paid compensation must be at or below 150 bps and correspondents must have a max net price of 101.50

Loans not currently serviced by UWM have no restrictions based on the note date

FHA Streamlines and VA IRRRLs must still meet seasoning requirements

Loans currently serviced by UWM must follow restrictions based on the note date

Conforming Conventional

Must be at least 365 days from the previous note date

VA, FHA and USDA

Must be at least 210 days from the previous note date

Required on all loans

Max lock period of 60 days

“Control Your Price” option not allowed

Loan must be locked prior to submission

UWM, the nation’s largest originator, produced $33.6 billion in volume in the second quarter. Although 81% of this volume involved purchase loans, UWM expects to see more refinance originations in the near term.

While rivals are looking to their servicing books to goose refi originations in the coming year, UWM has taken a different tack. In its quarterly earnings call last month, UWM CEO Mat Ishbia said the company is preparing for a refi bump. It is investing heavily in technology and originations operations rather than more traditional servicing plays.

The company continues to opportunistically sell its servicing portfolio, which ended the second quarter at $189.5 billion in unpaid balance (UPB). UWM generated nearly $2.4 billion in net proceeds from these sales, which typically involved servicing rights with coupons above 5.5%.

FromAround TheWWW

A curated News Feed from Around the Web dedicated to Real Estate and New Hampshire. This is an automated feed, and the opinions expressed in this feed do not necessarily reflect those of stevebargdill.com.

stevebargdill.com does not offer financial or legal guidance. Opinions expressed by individual authors do not necessarily reflect those of stevebargdill.com. All content, including opinions and services, is informational only, does not guarantee results, and does not constitute an agreement for services. Always seek the guidance of a licensed and reputable financial professional who understands your unique situation before making any financial or legal decisons. Your finacial and legal well-being is important, and professional advince can provide the support and epertise needed to make informed and responsible choices. Any financial decisons or actions taken based on the content of this post are at the sole discretion and risk of the reader.

Leave a Reply