United Wholesale Mortgage is seeing roughly 25% of its borrowers receive a more advantageous credit result under VantageScore 4.0 than they would have under the traditional FICO scoring model, and the lender expects that figure to reach 2 in 5 borrowers by the end of the month. UWM, the first mortgage lender to offer VantageScore 4.0 when it became available earlier this year, said the difference can improve pricing, provide better LLPAs, lower mortgage insurance costs, increase loan eligibility and, in some cases, turn what could have been a no loan into homeownership. President and CEO Mat Ishbia called the addition of VS4 one of the best things to come from the FHFA in many years and credited the agency and Director Pulte for taking action, adding that other agencies are now following his lead. VantageScore 4.0 uses additional information and trending credit data to assess how consumers manage credit over time, producing a more complete view of a borrower's credit profile without changing lending standards. UWM, headquartered in Pontiac, Michigan, is the publicly traded indirect parent of United Wholesale Mortgage and has been the nation's largest wholesale mortgage lender for 11 consecutive years.
UWM Holdings CorpUWM borrowers increasingly qualify for better credit outcomes and loan eligibility under VantageScore 4.0, expanding its lending volume.
