UWM Introduces Refi 100 Pricing Incentive To Revitalize Refinance Business
As mortgage rates hover at lower levels, UWM offers 100-basis point incentive on conventional refinances.
In a move to boost its refinance business, United Wholesale Mortgage unveiled a Refi 100 pricing incentive this week. This initiative offers a 100-basis points pricing incentive on any note rate for conventional rate and term refinances.
Gregg Harris, CEO of LenderCity and Alexa Home Loans, said he's been getting quite a few inquiries on refinancing lately.
Mortgage interest rates dropping from nearly 8% in October 2023 to the mid-sixes this week makes refinancing more attractive for some borrowers.
"Given that we're standing still, any incentive is welcomed in this market," Harris said.
But will it be a refi boom?
"I don't think so," Harris said. "However, there is the need for many borrowers for debt consolidation at the moment." According to the New York Fed, total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit. Mortgage balances increased to $12.14 trillion, credit card balances to $1.08 trillion, and student loan balances to $1.6 trillion.
UWM's offer of 100 basis points does come with one caveat. It does not apply to loans originated by UWM in the last 365 days.
"Any lender can do whatever they want with their margin in order to be competitive," Ed Darrow, executive vice president of sales for Mega Capital, said.
He added: "I think that it would be more beneficial for the broker community as a whole if all lenders put their best team on the court and we played by the same rules. If you change the rules of the game, then the ability for the broker community to have a competitive marketplace becomes more difficult."
The program will only be available for new refinance loans locked in from now through March 29.
Despite this initiative, UWM CEO Mat Ishbia has said during earnings calls over the past year that he's gearing up for a refi boom.
“We know the refi boom, whether it’s a long sustained one or a mini refi boom, is going to come soon," Ishbia said last August.
Harris said while it's not expected to be a global refi boom, the program is expected to help a number of brokers get through to the spring buying season.