UWM to give 125 bps incentive on some government refis 

United Wholesale Mortgage (UWM) announced on Wednesday that it will temporarily give a 125-basis points incentive in some government refinancing programs, another step to guarantee the retention and attraction of home borrowers looking to lower their mortgage rates. 

The Govy125 program includes any note rate, any occupancy for the U.S. Department of Veterans Affairs interest rate reduction refinance loans (IRRRLs), and non-credit qualifying Federal Housing Administration (FHA) streamlines. 

The incentive is available on new locks through Sept. 2, with a maximum lock of 60 days. 

The program has some limitations. The incentive is available to brokers who use the lender’s services that handle all the title work on refinances (TRAC+) and/or offer additional loan processing support (PA+).  

Pontiac, Michigan-based UWM launched the TRAC+ in May to manage title review, closing, and disbursement for its brokers. It comes as the federal government pushes title insurance alternatives designed to save consumers money. 

The company said that those who use the service will have an additional up to 60 bps in the Govvy125 program, with the incentive reaching up to 185 bps. 

The top U.S. mortgage lender also reduced the PA+ full-service fee to $595 from $895 for FHA streamlines and VA IRRRLs.   

Regarding its purchase loan offerings, UWM recently announced a zero-down payment loan. It gives qualified borrowers 3% in a down payment assistance loan up to $15,000. 

The loan will not accrue interest and will not require a monthly payment. The company said that borrowers pay the second lien loan by the end of the loan term but have flexibility in when and how often they make payments.