Earlier this year, United Wholesale Mortgage, announced it was launching set fixed-rate jumbo products and this week it’s enhancing its pricing with an expansion of its “Control Your Price” program.
The Pontiac-Mich.based company announced sharper pricing on loans under $200,000. The new plan includes the removal of loan-size pricing adjustments on loans under $100,000 and market-based pay-ups on 30-year fixed conventional loans that are $200,000 and below.
The number of basis points brokers can apply to Jumbo loans will increase to 40, when previously it was capped at 20. On all non-agency Jumbo loans, the Control Your Price basis points applied by brokers will be doubled or tripled, up to a maximum of 120 basis points.
These adjustments will open up opportunities for more borrowers and real estate agents to partner with mortgage brokers, UWM said. It will also enhance the wholesale channel and provide independent mortgage brokers with a competitive advantage, helping them secure more non-agency Jumbo loans and loans under $200,000.
The Control Your Price program was first launched by UWM in January 2023, designed to offer brokers access to a bucket of basis points that they could use as needed, up to 40 basis points per loan. This approach was intended to provide brokers with greater flexibility and control, aiming to deliver a more affordable, convenient, and efficient experience for their clients.
With big banks pulling out of the mortgage space, UWM is focusing more on jumbo products, President and CEO Mat Ishbia said Wednesday during an earnings call.
"I think jumbo is an opportunity," Ishbia said.
While UWM cannot compete with banks' low cost of funds derived from their clients' deposits, the wholesale lender said it benefits from its overall cost structure and maintains a competitive edge through its favorable margin.
