UWM offers high LTV cash-out refis without mortgage insurance

United Wholesale Mortgage is offering another aggressive promotion for borrowers seeking refinances.

The leading lender’s Conventional Cash-Out 90 allows homeowners to access up to 89.99% loan-to-value on their homes in a cash-out refi without obtaining mortgage insurance. The product, available immediately, is the only such offering in today’s mortgage market, the company said. 

An MI credit enhancement is required on loans with LTVs exceeding 80%, should they be sold to Fannie Mae and Freddie Mac. In a past no-MI promotion for purchase loans, UWM said it wouldn’t sell such loans to government-sponsored enterprises. 

UWM did not disclose how it would handle the loans. 

The product is intended to allow borrowers to take advantage of rising equity levels, fueled by soaring home prices in recent years. Customers must have a FICO score of at least 680 and the refi must be for primary homes with 30-year fixed terms. 

The promo is also only available for conforming loan limits. UWM was among the first lenders to raise its conforming loan limits for the new year ahead of a government announcement, and is offering the largest limit for a one-unit property at $803,500.

It’s the second refi-related promo the Michigan-based megalender has offered in the past two months. In September, UWM unveiled Refi75, which gives borrowers a 75 basis point incentive on any note rate for conventional and government-backed loans. That offering is good for rate locks through Oct. 31. 

The company has also deployed an artificial intelligence-powered tool to notify borrowers of refi opportunities. Fading mortgage rates this summer spurred a mini-refi boom in August and September, although rates have since climbed again and have dampened more recent refi application activity.

UWM with its massive coffers has been able to offer other unique portfolio products, like a 0% down payment purchase product which raised eyebrows this summer. The lender emphasized that the product was developed under federal guidelines much stricter than those that allowed similar, riskier 0% down products in years prior.