United Wholesale Mortgage quickly followed its Detroit-area
UWM is now buying loans eligible for sale to Fannie Mae or Freddie Mac up to $715,000; the single-family conforming limit for 2022 is $647,200. It will have to retain these mortgages on its balance sheet until the start of 2023, at which time it could sell them to the government-sponsored enterprises.
Because conforming loan limits are set using a formula mandated by federal law, lenders can anticipate what the FHFA will announce later this year as the numbers for 2023.
"UWM is singularly focused on giving mortgage brokers a competitive advantage in the mortgage industry," a statement from the company said. "This announcement comes after the launch of standalone and piggyback HELOCs, and temporary rate buydowns."
National Mortgage News reached out to several other nonbank lenders to see if they were also raising their conforming limits early.
Homepoint will be increasing its conforming loan limits, but it did not have a launch date yet, a spokesperson said. Fairway Independent Mortgage and Newrez also confirmed they are increasing their limits. Finance of America is "temporarily increasing its conventional loan limit up to $715,000 on loans locked on or after Sept. 13," a post on its website said.
Pennymac also raised its loan limits to $715,000 across all of its origination channels. "At Pennymac, we continue to support our customers and partners by providing them with the best options in today's market," a statement said.
CMG Financial also followed suit and increased its loan limits in its retail, wholesale and correspondent channels to the $715,000 amount.
Others said their company was considering it or declined to comment. However, competitive pressures are likely to force some to follow along with Rocket and UWM.
Separately, UWM announced an expansion of name, image and likeness sponsorship of Michigan State University athletes, to now cover players on the women's basketball and volleyball teams.
Last September, it sponsored men's basketball and football players.
UWM President and CEO Mat Ishbia was a member of the school's 2000 national champion men's basketball team and has spoken about how his experiences playing and coaching under Tom Izzo, MSU's long-time coach,
A June 2021 U.S. Supreme Court decision in National Collegiate Athletic Association v. Alston opened the door for student-athletes to receive compensation from outside parties for name, image and likeness use.
"The NIL deals we made last year with MSU's men's basketball and football players was one of the first and largest deals at the time," Ishbia said in a press release. "We wanted to get our feet wet and test it out, and we're happy we did as the success has been more than expected."
All players on the women's basketball and volleyball teams, no matter if they are on scholarship or a walk-on, could receive up to $700 per month for the full year if they complete making social media promotional posts assigned by UWM. The posts will be pushed out on the athletes' social accounts, and will focus on the benefits of working with an independent mortgage broker along with employment chances at the Pontiac, Michigan-based company.
"We're excited to expand this opportunity to all of the athletes on the women's basketball and volleyball teams and are eager to see the influence they have on educating consumers about career opportunities at UWM and the benefits of working with an independent mortgage broker," Ishbia said.
