United Wholesale Mortgage is ending its 1% down mortgage program, HousingWire staffer Kelsey Ramirez reports.
Mat Ishbia, the company’s president and CEO, said that he is proud of the work the program accomplished, but it needed to end. “It’s been a great program, but we’ve decided to sunset this program at UWM,” Ishbia explained to HousingWire, saying no one is forcing the company to end its program, but it was something his team decided needed to happen.
Last summer, Freddie Mac ended lenders’ 1% down mortgage program, as many lenders were simply pricing the remaining 2% into the price of the loan, rather than giving the money to home buyers as a grant, Ramirez explains. Lenders would then originate their buyer’s mortgage using Freddie Mac’s 3% down mortgage program.
But then, Freddie Mac said no more.
Because UWM gave the money as a grant, and did not add it in to the price of the mortgage, Ishbia explained the company was losing money on every loan. “We couldn’t keep the program going forever,” he said. “I don’t have unlimited funds.Read More