United Wholesale Mortgage is making some moves to help brokers compete more effectively in the higher-end loan market. According to HousingWire, UWM is extending its Bullseye 90 program, which gives brokers a ninety-basis-point pricing incentive on eligible loans, through the end of October. What's new here is that jumbo loans are now included in the program, meaning brokers can use this incentive on those larger loan amounts that typically come with more challenging economics.
At the same time, UWM is removing loan-level price adjustments on high-balance fixed-rate purchase and refinance transactions through the same date. For those of you not deep in the weeds on pricing, loan-level price adjustments are basically extra costs that lenders tack on to certain loans based on risk factors. By eliminating these adjustments on high-balance loans, UWM is saying brokers can pass along better terms to their borrowers and be more competitive when chasing this segment of business.
There are some ground rules to keep in mind. The Bullseye 90 incentive cannot be combined with other promotions or pricing tools that UWM offers, and brokers need to get a credit report submitted to the lock desk within a day of locking the loan to qualify. This keeps things straightforward and prevents any gaming of the system.
This move fits into a broader pattern we are seeing in the mortgage business. HousingWire notes that UWM has been rolling out various pricing incentives throughout the year to keep brokers engaged and competitive. Earlier in the year, they had different programs targeting refinances and spring purchases with smaller basis-point incentives, so this extension and expansion of Bullseye 90 represents their latest effort to address what everyone in the industry is watching closely right now, which is pricing in the high-balance space.
What I am seeing locally here in the Bay Area and throughout the East Bay is that high-balance lending has become increasingly competitive, and frankly, many borrowers with jumbo loan needs have more options than they did even a year or two ago. When lenders like UWM start removing pricing overlays and extending incentives on these loans, it signals they want the volume, and that generally translates to better terms for the buyers and sellers I work with who are in that higher price range.
