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
- Conforming Conventional
- 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%.
