UWM fends off critics of its 1% down program

Helping with affordability

He added the program was designed not only to help those needing assistance the most, but brokers as well: “At a high level, we remain focused on helping more borrowers – including those who need affordability assistance to achieve the dream of homeownership. That’s just how we think about it. How can we help everybody across the board? It’s a huge win for consumers because they receive down payment assistance to help with their home. Getting 1% down payment assistance for up to $4,000 is a really big win for consumers. And as we get into the purchase season and as we look into helping FHFA’s [Federal Home Finance Agency] overall goal of homeownership, this is just a big win for consumers across America and brokers because it’s available only through the broker channel.”

To buttress  the point, UWM’s spokesperson provided a testimonial from Whitney Beaubien of Moving The Mitten Mortgage. “My client had been looking for a new home, but she was on a very strict budget as she is a younger woman who had just graduated college and started her career,” Beaubien said. “Once she found the perfect home, I knew that we needed to find the perfect mortgage. When UWM released the 1% conventional loan offering, I knew it was the perfect fit for her.”

Beaubien showcased the significance of the $4,000 cap on her client: “This loan allowed my client to save $3,050 in her rainy-day fund and allowed me to win the deal over a local bank who was offering the same rate to my client but with no down payment assistance. I know that by helping save my client $3,050 and the service that UWM offers, she will be my client for life.”

Defending the program against skepticism

Others are decidedly more skeptical. Florida loan officer Rayce Robinson posted an Instagram video slamming the UWM program, noting the strict AIM requirements to participate. Other critics posted pejoratively in the comments thread to a video featuring UWM’s vice president of sales Eric Mojica that touted the program.

“Again, this is another product the broker has in their wheelhouse,” Elezaj said when asked about such criticism. “Even if their consumer doesn’t qualify for those products, there are others they can put them in.”