In an effort toward making credit evaluations simpler and more borrower-friendly, mortgage lender United Wholesale Mortgage (UWM) has announced a process enhancement that automatically selects the best credit score returned for a consumer by obtaining FICO® Scores and VantageScore® 4.0 on all credit pulls. The firm says the move will ensure it provides the borrower with the lowest payment, less expensive mortgage insurance and lower all-in fees and costs, providing a more affordable mortgage for consumers. Early research shows pulling all scores could save many borrowers thousands, the company stated.
“Our goal is simple: Put borrowers in the best possible position while making it easier for brokers to do business,” said Mat Ishbia, president and CEO of UWM. “No one should have to worry about which credit model wins. We handle that automatically by obtaining FICO and Vantage on all credit pulls to help consumers save more money and improve affordability, empowering brokers to close more loans and further strengthening UWM’s position as the mortgage industry leader in delivering innovation, value and better outcomes for brokers and borrowers alike.”
Calling it “a huge benefit for consumers,” UWM says rather than pursuing only short-term cost savings, the lender has made the deliberate choice to leverage every available tool and innovation to help consumers secure the best deal possible. A release also states brokers will no longer need to navigate the nuances between scoring models because with the default to the strongest qualifying score available, it maximizes opportunities while creating a faster, more seamless experience for brokers.
The lender says Federal Housing Finance Agency (FHFA) Director Bill Pulte and FHFA’s approach to driving competition in credit scoring by supporting multiple credit models, including the potential of a third model with FICO Score 10T, has had a positive impact on consumers, ultimately driving costs down. UWM will continue to embrace competition like this that benefits American consumers while working with FHFA and the GSEs to drive mortgage costs down further, the release states.
UWM adds the enhancement reflects its ongoing commitment to removing friction from the mortgage process and creating more opportunities and a better experience for both borrowers and brokers.
For more information, visit uwm.com.
