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

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%.

Related