I have said for some time that the game of getting back money from the bonds is going to get more aggressive.
Customer retention has always been a big deal in every industry, but thanks to new technology and “AI,” companies are getting better at it.
Many large mortgage companies have also been increasing their mortgage positions for this reason.
Instead of outsourcing borrowers to third-party companies, they retain servicing rights so they can mine their own database of homeowners for future offers.
And as the loan rates finally show a real promise, there can be more opportunities to move forward.
The Refi Boom Is, Clearly, Here
UWM recently announced that “the refi boom is officially here,” and it wants to make sure its real estate broker partners are “ready.”
To help improve them, they have launched a new program called SAVEwhich uses artificial intelligence (AI) to help marketers stay in front of their old customers.
The way it works is very simple. It continues to scan data from UWM’s portfolio and identify borrowers who “will benefit from mortgage refinancing.”
If a match is found, it automatically sends an email to the customer with a pre-confirmed offer, including the contact information of the original seller.
Borrowers will see their current monthly payment, new estimated payment, and estimated monthly savings.
It will also include disclosures such as the type of loan, loan-to-value (LTV) ratio, number of discount points required, and APR.
It’s not clear what the application threshold is, but UWM says the offers will be sent to borrowers “as soon as the borrower is able to achieve meaningful savings in their monthly payment.”
From there, all the borrower has to do is review and submit a pre-filled loan application, which then ends up in the seller’s queue.
It seems to be the next iteration of what may have been an old process, a manual outreach campaign where marketers find potential repaid people.
Now they may not need to do anything other than log into the UWM dashboard and check to see if any new loans have come their way. Talk about a nice surprise!
Good News for Consumers, But Borrowers Still Have to Shop Around
While this new program will be great for both UWM, the nation’s #1 lender, and our broker partners, borrowers still need to be proactive.
Indeed, it is easy and simple to be emailed for a mortgage refinance offer and simply reply and send the pre-filled application.
But it’s not always easy, especially when it comes to saving money. Of course, you can ask the seller and discuss the offer.
At the same time, you may want to talk to other banks, brokers, retail lenders, credit unions, etc. to see what they can offer you. Maybe they can go over the rate/fees.
As I have said time and time again, you need to compare real estate agents, as their prices and service can vary greatly as well.
Many of them work with different lenders and have different compensation structures. That can affect mortgage rates significantly.
Now there is nothing wrong with being honest, especially if you have enjoyed a previous experience with your dealer, but you should also make sure that they are still offering you competitive prices.
One month lender X offers the lowest mortgage rates, and the next month lender Y is the price leader.
So like I said before, if a lender reaches out, reach out to other lenders.
This is especially true when we are talking about the rate and time of reinvestment, which really needs to save money in order to be useful.
Last week, UWM also introduced the Refi75, a 75-point basis for promoting the average price, FHA and USDA rate and term refunds, as well as FHA Streamlines and VA IRRRLs.
Be sure to look at the big picture, including the final interest rate and all closing costs, to effectively compare offers.
Before creating this site, I worked as an account manager for a real estate broker in Los Angeles. My experiences in the early 2000s inspired me to start writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the mortgage process. Follow me on Twitter for the latest.
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