https://youtu.be/kEx6UPx99Wg

Hi there,  I’m Mat Ishbia, president and CEO of UWM, and this is “Three Points.”

First point, big FHA changes, so on March 18, 2019, FHA made some big changes for all case numbers after that date. Basically they said, ‘listen we're going to approve a lot less loans for higher DTIs and cash-out refinances.’

So all case numbers after that date the total scorecard their automated system is not giving as many approved eligible and a lot more things are being referred eligible.

Now you can still do some these loans with manual underwriting, but those 50, 55 DTI loans with lower credit scores are not getting approved eligible. Now, FHA still approves a lot of loans; there's a lot of great opportunity on FHA program, but they definitely tightened it up as of March 18th.

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Also, Fannie Mae did a similar thing a little bit ago also on their DU 10.30 , so DTIs over 45 percent are less likely toget approved. So the debt to income ratio is tighter in the industry now than it was six ,12, 18-months ago, so we should all be aware of those changes.

Second point, there was a major Fed announcement, so we all know what happened March 20th where the Fed came out and said that basically no rate increase going forward for the rest of 2019. In they were saying it’s a 30 percent chance that they're going to raise rates in

Now, they're saying it's a zero percent chance and actually a third of the people think they might even lower rates this year or the beginning of next year. That's a major swing from what we all would have expected. Now what happened?  The ten-year dropped, the  30-year fixed rate dropped. You guys all know that; you live it every single day. Big opportunity on refinances, big opportunity for purchases incoming.

So, maybe rates won't get moved up again until 2021, which is a big change from what we all just thought three, six, nine months ago. So major change, major opportunity--take advantage of it.

Third point, the CFPB reassures the industry.

The new leader of the CFPB, Kathy Kraninger, came out with a big announcement basically saying, “Hey listen I'm not going to abruptly make any changes to the so-called GSE patch.

The patch, as you guys know, is a big deal because anything over 43 DTI is considered Non-QM, unless it's going to the GSEs. And, so if they made that change, anything over 43 DTI would be Non-QM and have a whole different set of rules, and so it's a big deal to keep the patch in place. It was set to expire in 2021, or if it comes out of conservatorship, the GSEs.

But, right now it looks like Kathy Kraninger understands the details and is going to hold on that and make sure she does not affect the industry in a negative way. That's positive news for all homebuyers and everyone in this industry.

Thanks for joining me. I’m Mat Ishbia, president and CEO of UWM, and that was Three Points.