United Wholesale Mortgage (UWM) announced Wednesday that it is extending its removal of Loan Level Pricing Adjustments (LLPAs) on government loans for borrowers with a FICO score of 600 and above.
The program applies to Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans.
LLPAs, which are fees based on a borrower’s risk profile that affect the cost of a mortgage, typically reduce costs for low-risk borrowers while increasing costs for those deemed higher risk.
The Federal Housing Finance Agency (FHFA)’s updated pricing framework in 2023 sparked significant debate over LLPAs on conventional loans. In the government space, the FHA, VA, and USDA do not apply LLPAs. UWM is removing its own risk-based price adjustments.
UWM originally announced the removal of all LLPAs on government loans back in November 2024 and said it was available until March 31, 2025.
The program is now available through May 31, 2025. “This initiative will continue to make an impact on borrowers and give mortgage brokers a competitive edge,” a release from the company read. “By improving pricing by up to 150 bps, borrowers may increase their buying power, find it easier to purchase a property or lower their interest rate to secure their dream home.”
UWM also extended its 60-bps incentive pricing on conventional and government loans for qualifying brokers through March 31. The program applies to both conventional and government loans and is available to borrowers with a FICO score of 720 or higher.
Government-backed loans still make up a decent-sized share of UWM’s portfolio. The Michigan-based lender originated $139.4 billion in mortgages in 2024 on its way to a net profit of $329.4 million. By product type, filings show that UWM originated fewer conventional, government and jumbo loans in Q4 than in Q3, but the company still originated $6.07 billion in government purchase loans.
