Many lenders were quick to capitalize on the news and said they'd immediately remove the fee from any locked loans in the pipeline. But some mortgage brokers late last week and early this week expressed frustration that UWM, the top wholesaler, hadn't committed to doing so when many of its competitors had.
"I straight up told my AE I'm going to move all my refis if they don't drop it," one mortgage broker told me on Tuesday. "It's ridiculous. If I can save my clients $2,500, $3,000, I'm going to."
The nation's top wholesale mortgage lender on Wednesday told its broker partners that it would in fact remove the 50 bps adverse market refinance fee on all loans locked as of July 16.
In his weekly address to brokers, Mat Ishbia said the timeline is a result of its "fast" business model.
"We do right by consumers, by the brokers, and we're doing it again here," he said. "But we just can't do it at the same pace as everyone else. Everyone else can do it right away because they're not closing loans as fast, they're not selling loans as fast."
Ishbia said that any lock that was charged the FHFA fee that is not closing until Friday, July 23 or later, won't be charged.
LOs, I'd like to hear from you: which lenders have decided to not remove the fee until August 1? Email me anonymously at jkleimann@housingwire.com.
Hope you all have a great weekend!
James Kleimann
Managing Editor, HousingWire
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