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UWM pilots VantageScore 4.0 as an added option for wholesale brokers
UWM says the VantageScore 4.0 pilot can help some borrowers with a 620 minimum score qualify, and in select cases reduce LLPAs and cash to close, including savings tied to borrowers with more than $4,000 in savings.
HousingWire reports that wholesale mortgage lender UWM is piloting VantageScore 4.0 with independent mortgage brokers, adding the scoring option to help evaluate eligible borrowers in a market where a qualifying score can affect pricing, cash to close, and purchasing power.
UWM Chief Growth Officer Desmond P. Smith said the company moved quickly after approval because it had already been preparing for the industry shift across technology, operations, underwriting, and compliance, and it viewed VantageScore 4.0 as flexibility to help qualified borrowers reach homeownership.
According to HousingWire, UWM has a minimum qualifying score of 620, and in some cases borrowers who did not qualify using a traditional credit score can qualify when evaluated with VantageScore 4.0.
HousingWire adds that a higher qualifying score can reduce loan-level price adjustments, and UWM cited select cases where the difference resulted in less cash to close and the ability to qualify for more home, with savings described as tied to borrowers having more than $4,000 in savings.