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UWM will pull both FICO and VantageScore 4.0 on every credit check

The wholesale lender said the approach is meant to default to the scoring result that yields the lowest eligible payment, mortgage insurance, and all-in fees.

Reported · Written up by our desk · Mortgages

UWM said it will obtain both a FICO score and VantageScore 4.0 on every credit pull, then automatically use the strongest qualifying score for each borrower, according to HousingWire.

The Pontiac, Michigan-based wholesale lender said the change is intended to deliver the lowest possible payment, cheaper mortgage insurance, and lower all-in fees by defaulting to whichever score produces the best eligible pricing.

UWM added that its system will compare the two scoring results behind the scenes and apply the higher qualifying score that meets program requirements, removing the need for brokers to choose between scoring models.

UWM said early internal research suggests using all available scores could save many borrowers thousands over the life of the loan.

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