Michigan-based


United
Wholesale
Mortgage
(UWM)
has
launched
a
new
pricing
incentive,
offering
60
basis
points
(bps)
to
its
broker
partners
for
the
next
60
days,
a
period
when
mortgage
market
activity
typically
slows
due
to
the
holiday
season. 

The
program,
dubbed
“60bps
for
60
Days,”
applies
to
both
conventional
and
government
loans
and
is
available
to
borrowers
with
a

FICO
score
of
720
or
higher.
UWM’s
goal
is
to
“help
independent
mortgage
brokers
remain
competitive
in
the
current
market
landscape.”
The
offering
is
available
through
Jan.
31,
2025.

“The
purchase
market
usually
slows
down
in
the
fourth
quarter.
The
refi
market
has
slowed
down,”
Mat
Ishbia,
chairman
and
CEO
of
UWM,
told
analysts
during
an

earnings
call
in
early
November. 

“October
was
a
23-business
day
month.
November
and
December,
obviously,
are
shorter
months
with
the
holidays,
and
a
lot
of
times,
brokers
and
all
people
in
the
world
take
some
time
off
between
15th
December
and
beyond.
And
so
we’re
cognizant
of
that,” Ishbia
added.

The
pricing
incentive
coincides
with
improved
gain-on-sale
margins
at
UWM.
In
the

third
quarter,
its
margin
grew
to
118
bps,
up
from
106
bps
in
the
second
quarter
and
97
bps
in
the
same
period
last
year,
largely
due
to
a

refi
boom
driven
by
lower
rates.

Company
executives
attribute
the
margin
improvement
to
favorable
market
conditions
and
products
like
PA+
and
TRAC+,
which
assist
brokers
in
closing
loans.
UWM
forecasts
fourth-quarter
production
between
$34
billion
and
$41
billion,
with
gain-on-sale
margins
expected
to
range
between
85
and
110
bps.

The
new
incentive
follows
UWM’s
announcement
last
week
that
it
will

waive
all
loan-level
pricing
adjustments
(LLPAs)
on
government
loans
for
borrowers
with
a
FICO
score
of
600
or
higher
through
March
31,
2025.
The


Federal
Housing
Administration
(FHA),


U.S.
Department
of
Veterans
Affairs
(VA)
and


U.S.
Department
of
Agriculture
(USDA)
do
not
apply
LLPAs.
UWM
is
removing
its
own
risk-based
price
adjustments.

In
September,
UWM
launched
a 75-bps
incentive
program for
conforming
conventional
and
government-backed
rate-and-term
refinances.
Initially
set
to
end
on
Oct.
31,
the
program
was
extended
through
Nov.
29.

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