United Wholesale Mortgage CEO Sees New Refi Opportunity For Borrowers And Brokers

Mat Ishbia (pictured), president and CEO of United Wholesale Mortgage (UWM), hailed the news of a new FHFA refinance option for low-income borrowers as a great opportunity for borrowers and brokers. He explained that the program, which offers refinancing loans to borrowers earning 80% of the area’s median income (MAI) at 50 basis points less in fees with appraisal cost coverage of up to $ 500. , should generate a new wave of refinancing for brokers if they market. themselves right. He also explained some of the reasons the FHFA and Director Calabria are working to extend refinancing options to low-income people and how brokers can seize the opportunity to help more people.

“Originators, and mortgage brokers in particular, are trying to help a lot of consumers,” Ishbia said. “What they need to do is show every consumer that there are enough benefits for them to refinance. To make it a good deal, you want to offer them the best price possible. This half a point less eliminates some concerns for the borrower as it lowers the real rate by 12.5 to 15 basis points. If the borrower was at 3.5% and could go to 3.125% because of the rates, he can now go to 3%.

“On top of that, it gives originators the ability to cover the assessment for the borrower knowing that they will also be reimbursed up to $ 500 by the lender.”

Ishbia believes that this decision by the FHFA, together with recent agency restrictions on investment and second home loans, represents a desire by the FHFA to improve access to homeownership by reaching a segment of borrowers who has been neglected in recent directives. Ishbia noted that these low-income borrowers may not have been able to participate in the 2020 refi boom. This program now gives initiators a chance to find these borrowers, explain the program and tell them that they can. perform the refi without the borrower paying the appraisal fee.

Access and eligibility, Ishbia explained, should be very straightforward. If an existing borrower earns less than 80% of the MAI and has a loan of less than $ 300,000, they may qualify for this price reduction and free appraisal. He said that as brokers and originators strive to offer these loans to their clients as they become available during the summer, UWM is there with marketing support and communication platforms. that credit professionals can take advantage of.

While this program should spur a new wave of refinancing, Ishbia does not believe it will prevent eligible borrowers from moving until the summer. If someone can get a good rate now and is ready to refi, they think it’s a good deal for brokers. When the program goes live and likely results in another spike in refinancing, Ishbia said UWM would be prepared to keep turnaround times as low as possible.

“There is a lot to come to help brokers provide loans to consumers who want to refinance or buy,” Ishbia said. “Brokers need to know that UWM will be there to support them. We’re going to make sure brokers have all the tools – from technology, to products, to great pricing – to help more clients who want a product like this from the FHFA. UWM will be one of the first to deploy it as soon as it becomes available. “

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