United Wholesale Mortgage is getting rid of escrow waiver fees for certain loans in a bid to make brokers more competitive with mortgage banks.
For conforming conventional loans, United Wholesale will no longer apply the 0.25% escrow waiver fee. With the change, borrowers "can potentially save thousands of dollars at closing on fees and an initial escrow deposit," the company said in a news release Tuesday.
In particular, borrowers can waive escrow on all conventional loans up to a 90% loan-to-value ratio, but the borrower must have a FICO score at or above 720 to waive the fees for loans exceeding 80% LTV.
"This change is a major win for our mortgage brokers and their borrowers," United Wholesale President and Chief Executive Mat Ishbia said in the release. "Removing the 0.25% adjustment will allow borrowers to keep more money in their pockets and the flexibility to pay their own taxes and insurance yearly."
