UWM's latest promo covers more refi products

The latest promotion from United Wholesale Mortgage encompasses a broader product set than the one it is replacing that specialized in just certain government refinance products.

This promo comes on the heels of a report from ICE Mortgage Technology that the servicer retention rate for refinancings is at the second to lowest point in 17 years.

UWM's philosophy is that the client belongs to the mortgage broker and programs like this enable those originators to retain the borrower's business, the company said. 

With the Federal Reserve signaling it will cut the federal funds rate soon, and with interest rates inching down, refi originations have picked up in recent week. But the news from this morning's Mortgage Bankers Association Weekly Application Survey was a mixed bag. While refinancings made up 46% of new applications last month, the volume of loans for this purpose fell for the third consecutive week, for the period ended Aug. 30.

The industry share of refi rate locks was 26% according to an Optimal Blue report for Aug. 30, down 234 basis points from the prior day. The product and pricing engine provider's index for cash-out refis was down 17% and for rate and term, it was 19% lower from Aug. 29.

The latest promo is titled Refi75. It gives a 75 basis points incentive on any note rate for conforming conventional mortgages, as well as Federal Housing Administration and U.S. Department of Agriculture rate and term refinances, along with FHA Streamlines and Veterans Administration Interest Rate Reduction Refinance loans.

It is available on rate locks through Oct. 31.

It replaces Govy125, which was just for the FHA Streamlines and VA IRRRLs. That program ran from July 10 to Sept. 3.

With the new promo, loans that are not currently serviced by UWM do not have any note date restrictions.

But for any conforming conventional loans the wholesaler currently has in its servicing portfolio that is looking for a refi, they need to have 365 days or more of seasoning before being eligible for the promo rate.

The government-guaranteed loans UWM services need to be at least 210 from the previous note date.

Other restrictions include the loan must be locked prior to submission, the maximum lock date is 60 days, and Control Your Price, an initiative first announced in January 2023 and looks to be ongoing, is not allowed.

In the second quarter, UWM did $6.5 billion of refi volume, compared with $5.5 billion in the first quarter and $3.8 billion in the second quarter of 2023.