Is there a price war on the horizon?

Good afternoon! Was this newsletter forwarded to you? Sign up here.

Hello, LOs!

Some mortgage lenders are in a better position than others in a shrinking market because they cashed in during the refi boom of 2020 and 2021.

Only three in a group of 11 publicly traded mortgage lenders had a reduction in cash position during the first quarter of 2022, compared to the fourth quarter of 2021, according to a HousingWire analysis. Some socked away tremendous gains: Rocket Companies has more than $2.3 billion in cash, New Residential Investment Corp. has more than $1.6 billion and UWM Holdings Corporation has more than $900 million.

But, so far, UWM is the only mortgage lender to publicly announce a competitive price offering to its LOs. As mortgage reporter Connie Kim outlined in an article Wednesday, the nation's largest wholesale lender dropped rates by 50 to 100 basis points across all loan types. The new program follows UWM's two-month price-match trial, in which UWM matched competitors' 30-, 45-, or 60-lock pricing by 1 bps, to a maximum of 40 bps.

Based on UWMs pricing programs, I've been wondering what's happening in the shadows. LOs: Do you see a war price on the horizon? I'm curious whether other lenders are equally aggressive with their pricing strategies, or whether they're trying to protect their margins during the market downturn.

Please share your thoughts with me at flavia@hwmedia.com.

Flávia Furlan Nunes

Mortgage reporter, HousingWire

FHFA: No delay on 50 bps fee, but open to "engagement"

Mortgage

The FHFA on Thursday reiterated its stance on a new fee on some government-backed enterprise securities, but said it would engage stakeholders.

Strengthen relationships and increase purchase business with Percy

Percy analyzes consumer behavior signals and turns them into actionable intelligence for mortgage and real estate brands. Our data-driven platform engages homeowners to help agents and LOs increase purchase business and drive deeper relationships with their clients. Meet Percy

How lenders can improve business models in 2022

Presented by Teraverde

As 2022 proves to be a challenging year for the housing market, lenders are looking to take advantage of potential downtime by improving their internal processes. HousingWire recently spoke with James Deitch, CEO of Teraverde, about the changes lenders can make to their business models in order to remain profitable.

As fundraising environment freezes, power buyer UpEquity cuts staff

Mortgage, Proptech

"Our purchase volume is strong, but our refinance volume has evaporated," said UpEquity CEO Tim Herman. "We're not growing at the pace with which we hired for or projected."

For too long, a reverse mortgage has been seen as a last resort

At Reverse Mortgage Funding LLC, we know that when used thoughtfully, it can be a sophisticated part of a financial plan. That's why we're working to change the way people think about reverse mortgages.

Learn More!