United Wholesale Mortgage (UWM) is offering brokers 40 basis points in better pricing across its loan products through Dec. 31, tying the incentive to the use of its underwriting, title, or virtual closing services.
The promotion, called 40 to the Finish, applies to new locks beginning Nov. 11 on loans with borrower credit scores of at least 700. Brokers must use at least one of three UWM services: Underwriting+, TRAC+, or Virtual Closing.
On a $400,000 loan, 40 basis points represents $1,600 in pricing value, giving brokers additional room to compete on eligible files heading into year-end.
The offer covers both agency and non-agency products, including jumbo, bank statement, and investor loans. It is also eligible for UWM's Control Your Price program, although jumbo loans are excluded from Control Your Price Match.
Pricing With a Purpose
The promotion continues UWM's strategy of using pricing incentives to encourage brokers to adopt its services.
During the company's first-quarter earnings call in May, UWM CEO Mat Ishbia explained that some pricing promotions are designed to accomplish more than simply offer lower rates.
"A lot of our price incentives are more strategic than that," Ishbia said. "They're incenting brokers with a price incentive, but to use a tool of ours."
That approach is evident in the latest offer, particularly with Underwriting+, which UWM introduced in September.
The service shifts much of the processing workload to UWM's underwriting team, including collecting borrower documentation and clearing conditions. UWM reported an average of 8.3 days from submission to clear-to-close during its pilot.
Underwriting+ carries a $745 processing fee on standard loans, in addition to the standard underwriting fee. However, UWM is waiving processing charges on brokers' first three Underwriting+ loans through Dec. 31.
Brokers can also qualify for the new pricing incentive by using TRAC+, UWM's title and closing service, or its Virtual Closing option.
The promotion comes just weeks after UWM removed minimum credit-score overlays on agency loans. While that change broadened eligibility for borrowers who meet agency requirements, the latest pricing incentive is limited to loans with scores of at least 700.
For originators comparing wholesale lenders, the 40-basis-point improvement could be meaningful, particularly on larger loan amounts. The value on individual files will depend on the lender's overall pricing, applicable service costs, and available alternatives.
UWM is also offering separate FHA and VA pricing enhancements through Dec. 31, including the removal of certain credit-score loan-level price adjustments for borrowers with scores of 580 and above.
