Uwm Debuts New 60-bps Incentive Program

Michigan-based United Wholesale Mortgage (UWM) has launched a new pricing incentive, offering 60 basis points (bps) to its broker partners for the next 60 days, a period when mortgage market activity typically slows due to the holiday season. 

The program, dubbed “60bps for 60 Days,” applies to both conventional and government loans and is available to borrowers with a FICO score of 720 or higher. UWM’s goal is to “help independent mortgage brokers remain competitive in the current market landscape.” The offering is available through Jan. 31, 2025.

“The purchase market usually slows down in the fourth quarter. The refi market has slowed down,” Mat Ishbia, chairman and CEO of UWM, told analysts during an earnings call in early November. 

“October was a 23-business day month. November and December, obviously, are shorter months with the holidays, and a lot of times, brokers and all people in the world take some time off between 15th December and beyond. And so we’re cognizant of that,” Ishbia added.

The pricing incentive coincides with improved gain-on-sale margins at UWM. In the third quarter, its margin grew to 118 bps, up from 106 bps in the second quarter and 97 bps in the same period last year, largely due to a refi boom driven by lower rates.

Company executives attribute the margin improvement to favorable market conditions and products like PA+ and TRAC+, which assist brokers in closing loans. UWM forecasts fourth-quarter production between $34 billion and $41 billion, with gain-on-sale margins expected to range between 85 and 110 bps.

The new incentive follows UWM’s announcement last week that it will waive all loan-level pricing adjustments (LLPAs) on government loans for borrowers with a FICO score of 600 or higher through March 31, 2025. The Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) do not apply LLPAs. UWM is removing its own risk-based price adjustments.

In September, UWM launched a 75-bps incentive program for conforming conventional and government-backed rate-and-term refinances. Initially set to end on Oct. 31, the program was extended through Nov. 29.