United Wholesale Mortgage is removing its minimum credit score overlays on agency loans, effective immediately, while automating the selection between FICO and VantageScore 4.0 through its free credit reports.
Together, the changes address two different parts of a broker’s loan evaluation: whether a borrower qualifies and which credit score is used to determine available pricing.
UWM said its minimum score overlays will no longer apply to conventional loans through Fannie Mae and Freddie Mac, or FHA, VA, and USDA loans. Eligibility will instead be determined through the applicable automated underwriting system, or AUS, under agency guidelines.
The change removes UWM’s own score requirements; it does not eliminate applicable agency requirements or guarantee approval. Credit scores will continue to affect pricing, including agency loan-level price adjustments.
Minimum credit scores will remain in place for UWM’s Jumbo, Bank Statement, and Investor Flex loans.
Agency Eligibility Moves To AUS
UWM said differences between scoring models helped reinforce its decision to remove the overlays. The same borrower can receive materially different scores from FICO and VantageScore, while an automated underwriting assessment considers a broader financial profile.
“A credit score is definitely part of the story, but it doesn’t tell the whole story,” said UWM President and CEO Mat Ishbia.
Ishbia said UWM spent the past year examining the relationship between credit scores, borrower approvals, and loan performance. The company concluded that scores were important indicators but were not the strongest predictor of a borrower’s ability to qualify.
For brokers, the change could open another path for a borrower whose score previously fell below UWM’s lender-specific minimum, provided the file meets the applicable agency requirements and receives the required AUS result.
Qualification and pricing remain separate considerations. Removing a score overlay may allow a file to proceed, while the borrower’s score can still influence the terms available.
Highest Qualifying Score Selected Automatically
UWM is also now automatically selecting the highest qualifying score returned by FICO and VantageScore 4.0, replacing a decision brokers previously made themselves.
The feature is live, a company spokesperson told NMP. UWM obtains both models through its free credit reports, with no added cost to brokers or borrowers.
Since April, brokers using those reports have received scores from both models and could choose the option that best fits a borrower’s scenario. UWM now makes that selection automatically.
The spokesperson said the enhancement applies across all products and selects the highest qualifying score. That describes score selection rather than a calculation comparing total payments, mortgage insurance premiums, and fees under each model.
A higher qualifying score can potentially reduce loan-level price adjustments or mortgage insurance costs when it crosses a relevant pricing threshold. UWM said savings vary with each borrower’s profile.
The rollout follows UWM’s removal of its 20-point VantageScore adjustment for new locks beginning Sept. 30. Fannie Mae and Freddie Mac also moved to aligned pricing between VantageScore 4.0 and Classic FICO effective Oct. 1.
FICO Remains Part Of Every Pull
In a separate announcement, FICO said UWM reaffirmed its commitment to obtaining FICO scores on all credit pulls across its broker lending operations, alongside other eligible scoring models.
That commitment keeps FICO in UWM’s dual-score process even when VantageScore produces the selected result.
“No one should have to worry about which credit model wins,” Ishbia said. “We handle that automatically.”
For brokers evaluating agency loans, the combined changes mean UWM’s own minimum score overlay will no longer determine whether a file can proceed. AUS will govern eligibility under applicable agency guidelines, while the highest qualifying score obtained through UWM’s dual-score process can help determine pricing.
