United Wholesale Mortgage (UWM) on Wednesday unveiled two new residential affordable mortgage products aimed at helping underserved borrowers become homeowners.
UWM, America’s top mortgage lender, offers its Special Purpose Credit Program (SPCP) to: fannie maeof HomeReady and freddie macBorrowSmart Geo-Target program.
These services will be available in select metropolitan areas including Detroit, Baltimore and Chicago on Freddie Mac’s BorrowSmart and Detroit, Baltimore, Chicago, Atlanta, Memphis and Philadelphia on Fannie’s HomeReady program.
Lenders receive up to $10,000 in down payment/closing costs for BorrowSmart Geo-Target, up to $5,000 in down payment/closing costs for HomeReady SPCP, and up to $1,000 in home warranty and appraisal costs for qualified buyers said.
By early 2022, there will be seven government agencies, including: Consumer Financial Protection Bureaugave lenders permission to develop SPCPs and increase credit access to historically disadvantaged individuals without worrying about violating fair lending laws.
UWM is one of a growing number of financial institutions turning to Fannie and Freddy’s special purpose program to close the homeownership gap. This program is key to the GSE’s equitable housing finance plan.
“The equitable housing finance plan represents a commitment to a sustainable approach that meaningfully addresses racial and ethnic disparities in home ownership and wealth that have endured for generations.” Federal Housing Finance Agency Director Sandra Thompson said when she announced the groundbreaking plan last year. “We look forward to working with businesses, financiers and other housing industry participants to further develop the ideas contained in these plans.”
