Before the sky starts to fall and we all become victims to our own self-induced dementia...
1. UWM, Matt Ishbia and company, is just one wholesale lender. His clients are mortgage brokers, not bank lenders, correspondents or credit unions. He's a smart fellow, is taking the lead and someday in the future other lenders may offer the same service. There are a host of other wholesale lenders not set-up to use this method. If anything, the big players are boiler room lenders such as Quicken Loans, loanDepot and PHH Mortgage. Watch out for them.
2. NSAs and SSs are mostly chosen by title/escrow companies, not by lenders. Will loan brokers climb aboard UWM to offer this service to clients? Maybe. Not all brokers utilize UWM. Those that do may not want to use their service. It's up to the loan originator and...
3. More often than not, the LO will follow the realtor and where they opened escrow so as not to rock the boat. That widens the scope for purchase loans to be completed by their favorite escrow company. Each escrow has their own pet NSA or SS.
4. The 10% Tolerance Rule. Okay, a refresher. In reality, it's NOT up to the LO or the realtor what escrow company will be used. It's up to the customer. IF the customer is force fed a certain escrow company working hand in hand with a lender for the video signings, the escrow company has a zero tolerance in fees. That is, what they quote (for ALL their fees) must be to the penny at closing. Uh-huh....
The 10% tolerance, or closing fees that may fluctuate by 10%, is only available when the customer chooses the escrow company. We all want that 10% leeway, so often 'push' the client into whatever escrow service works best for the realtor and lender, although offering the use of other escrow companies.
5. Will UWM eventually get every state to sign up with his service? Possibly. How many LO's will utilize the service? This is a very narrow scope when you take in the big picture. |
