United Wholesale Mortgage (UWM) has launched an enticing new pricing program called “60bps for 60 Days” to assist its broker partners during the typically quieter holiday season in mortgage lending.
This initiative offers an attractive incentive of 60 basis points (bps) on both conventional and government loans, specifically targeting borrowers who hold a FICO score of 720 or higher.
This limited-time offer is active until January 31, 2025.
Strategic Timing
According to Mat Ishbia, UWM’s chairman and CEO, the purchase market usually slows down in the fourth quarter, and refinancing activities have also dropped.
The timing of this pricing incentive is strategic, coinciding with a notable increase in gain-on-sale margins, which have risen to 118 bps in the third quarter—an improvement from 106 bps the previous quarter and 97 bps during the same quarter last year.
This margin growth primarily stems from a recent wave of refinancing driven by lower interest rates.
Future Projections
Looking toward the future, UWM projects that its production for the fourth quarter will be in the range of $34 billion to $41 billion, with gain-on-sale margins likely falling between 85 and 110 bps.
This new pricing initiative follows UWM’s earlier announcement about halting loan-level pricing adjustments on government loans for borrowers with a minimum FICO score of 600 until March 31, 2025.
Through these strategic efforts, UWM aims to equip brokers with the tools they need to close loans successfully in an increasingly competitive environment.
Source: Housingwire