UWM expands its laborious credit score stories program

United Wholesale Mortgage (UWM) has enhanced its Protected Examine program, which offers credit score stories with out initiating undesirable set off lead solicitations to brokers’ opponents. In some circumstances, the lender will present a tough credit score report at no further value to debtors.  

This system was launched in October 2022 to offer brokers $10 single-bureau mushy credit score checks for standard loans. In January 2023, it expanded to supply a three-bureau mushy examine for $23. 

However the Pontiac-based lender expanded Protected Examine to authorities and jumbo loans, it introduced Wednesday.

As well as, in its Protected Examine Full model, launched Wednesday, the dealer can order a pre-qualification primarily based on a three-bureau mushy credit score examine for $23. In the meantime, UWM will pull a tri-merge laborious credit score report at no further value to the borrower. 

“LOs may also be capable of recoup the price of Protected Examine Full at closing,” the corporate states in a information launch. 

UWM’s web site clarifies that Protected Examine will not be eligible for dwelling fairness strains of credit score (HELOCs), financial institution assertion, investor and USDA loans. In the meantime, Protected Examine Full is unavailable on VA rate of interest discount refinance loans and FHA streamline loans. 

Different lenders within the wholesale house have launched initiatives associated to credit score stories this yr. The technique is predicted to courtroom extra brokers in an trade going through increased credit score report charges. 

In January, Rocket Professional TPO, a wholesale arm of Rocket Mortgage, introduced credit score stories for gratis for brokers when closing loans by the Detroit lender. 

Rocket Professional TPO’s govt vp Mike Fawaz mentioned in an interview with HousingWire that the Charge Freedom initiative goals to provide the dealer group “instruments” to drum up enterprise.

Regulators are transferring to handle the credit score report value points. 

In March, FHFA introduced proposed implementation timelines for utilizing the FICO 10T and the VantageScore 4.0 credit score rating fashions by Fannie Mae and Freddie Mac

The federal government-sponsored enterprises additionally plan to transition to 2, quite than three, credit score stories from the nationwide client reporting businesses inside a yr.