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Last updated on December 5th, 2022 at 10:05 pm
United Wholesale Mortgage, The Pontiac, Michigan-based wholesale lender, released a new jumbo product on Wednesday that goes up to $2 million, with a loan-to-value ratio of up to 89.99%.
They had discontinued jumbo products with the onset of the pandemic, it is available for purchase, rate/term refinances, and cash-out for primary, secondary, and investment properties.
It is called “Prime Jumbo” and offers competitive rates, simplified guidelines, and the ability to run DU for eligible loans
Mat Ishbia, president and CEO of UWM is excited about the launch of Prime Jumbo and the competitive edge it’s giving to brokers to get their jumbo borrowers into their dream homes or refinance at a lower rate.
In February, Rocket Mortgage, UWM’s arch-rival had released their jumbo product for mortgage brokers, with similar offerings like UWM’s, However, Rocket’s offering only goes up to 80% LTV and doesn’t match the high cash-out of UWM.
Brokers across the country found that many clients have been shut out of non-QM loans in spite of having strong fundamentals and good credit.
Especially self-employed borrowers who dint have the option of products in spite of having good finances.
The non-QM space dried up due to a shortage in liquidity in the spring. lending standards were tightened by large retail banks and large nonbanks focused mainly on executing purchase and refi loans of the conforming, conventional variety.
Lenders have now returned to the non-QM arena as the economy has stabilized and vaccinations have accelerated in the last quarter.
UMW imposed a deadline on the total of 4600 brokers to sign an addendum, which said that if brokers were doing business with Rocket Pro TPO and Fairway they would be fined $50,000 and also couldn’t send loans to UWM.
Out of them close to 3,000 brokers accepted the addendum and 400 brokers declined the addendum and 1,200 have not responded.
Rocket, on the other hand, said they retained 22 of their 25 biggest broker partners and have even poached one of UWM’s top broker shops.
Reference Source: Housingwire
