Take That, Rocket: UWM Raises Its Conventional Loan Limit Too

Tuesday, it was Rocket Pro TPO. Today, it’s United Wholesale Mortgage.

UWM, the Detroit-based top U.S. wholesale and purchase lender, said it will increase its conforming loan limits ahead of the anticipated increase for 2023 to be announced by the Federal Housing Finance Agency (FHFA) in November.

UWM’s announcement followed by one day a similar decision by its crosstown rival, Rocket.

Rocket increased its conventional loan limits to $715,000 on Tuesday, a 10% jump ahead of the FHFA’s anticipated increase on the current conventional loan limit of $647,200. At the time, Rocket said raising the limit would give its partners and clients a huge advantage over their competitors.

Today, UWM said not so fast, announcing it also will raise the maximum conforming loan limit for regular, one-unit properties to $715,000. 

In addition, UWM said that, for special statutory provisions including Alaska and Hawaii, the baseline loan limit will be $1.073 million for regular, one-unit conventional loans.

“UWM is singularly focused on giving mortgage brokers a competitive advantage in the mortgage industry,” the company said in a news release. 

Rocket had said that brokers could start sending in applications following the new limits now, but that they would not be official until November. 

Conventional loans are typically more attractive to a seller compared to jumbo loans, offering borrowers better interest rates, lower monthly mortgage payments, and faster loan closings.

UWM’s announcement of the increase in the loan limit follows its other recent announcements of Standalone and Piggyback home equity lines of credit (HELOCs), and temporary rate buydowns.