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According to industry research group Inside Mortgage Finance in 2020 UWM, was the country’s fourth-biggest mortgage lender and now they are the 2nd biggest wholesale lender.
Mat Ishbia, the president and CEO of UWM is the man behind the success.
He, in one of his monthly company video pep-talk, is requesting mortgage originators to focus more on offering jumbo loans by taking advantage of low rates and appreciation in home values saying that this is a great time for brokers to promote jumbo.
According to him when the housing values are going up it means that more people are fitting into jumbo loans and less into the government-sponsored loans.
He urged them to take opportunities of jumbo borrowers and cash-out borrowers who need assistance.
The double bonus of drop-in rates and the elimination of the FHFA fee is a big opportunity for originators all over the country to do business for the rest of the year he added.
Ishbia in his video stressed the need to take advantage of customers buying power and ignore any concerns about high property prices.
The home price has appreciated to 16.6% from May of 2020 to May of 2021. This is the highest annual increase since November of 2005.
This means a lot of borrowers have a lot more equity in their house and even the borrowers who refinanced or bought houses during COVID still have equity.
Because the rates are very low there’s more buying power for consumers across the country.
Ishbia spoke about refinance and purchase with MPA and on low inventory.
He said that even when there are fewer houses for sale which is the reason that the values of houses are going up faster than normal, but he is foreseeing opportunity with forbearance coming up where a lot of borrowers who are unable to make mortgage payments might sell their house when forbearance ends.
Reference Source: MPA
