Mortgage leader United Wholesale Mortgage is rolling out a tool to allow brokers to bypass title insurers altogether on refinances, an expansion of
Brokers using Title Review and Closing plus, or TRAC+, can let UWM handle title reviews, closing and disbursement for a flat $1,850 fee. It upgrades its previous program in which transactions still
"Title is probably one of the least understood parts of the mortgage process," said Melinda Wilner, chief operating officer at UWM. "With TRAC+, it's not only creating a lot of savings but taking out a friction point that exists today that will save borrowers a lot of time."
The program, available Thursday, was announced by president and CEO Mat Ishbia at the UWM Live event Thursday at the firm's headquarters in Pontiac, Michigan.
Further details around TRAC+ were scheduled to be released Thursday afternoon. The current program carries a $1,600 fee plus the cost of a settlement agent. Brokers who had a preferred settlement agent sign up paid a $500 fee, according to UWM. Those who use two selected agencies pay a $350 flat fee.
The lender is offering scaling pricing incentives up to 60 basis points for a loan up to $150,000, 40 bps for a loan between $150,000 to $300,000, and 25 bps for loans between $300,000 to $450,000.
The firm in advance of the release hired attorneys and abstractors for title work in each state, Wilner said.
The tool comes at a tense time for the title industry, which has
Wilner acknowledged that TRAC's previous incarnation "ruffled some feathers," and cautioned that it won't be the best option for every buyer.
"Anything to give options usually gives good competition," she said. "We believe this product is a great movement forward to change something that's been stagnant for years."
