United Wholesale Mortgage will begin to provide mortgage brokers with the best rates and pricing in the U.S.

According to the company, it has been competitive in terms of rates, regularly ranking near the top of most rate comparisons, but was recognized by mortgage brokers more for its service, process, technology and partnership tools—and not for having the lowest rates.

"Perception has always been that a lender can't deliver it all: the best service, great technology, a true partnership, and have the best pricing too, but now they can have it all," said Mat Ishbia, president and CEO of United Wholesale Mortgage. "If a mortgage broker has a borrower with a 640 FICO [or higher], it should be a UWM loan."

To be able to offer the best rates, it has removed all state adjustments and many loan-level price adjustments, offering the best pricing on every loan with a 640 FICO and higher, according to the company.

These pricing improvements follow other recent pricing initiatives, such as the Jumbo Bank Buster program, which UWM contends offers the cheapest jumbo rates, and its lower borrower-paid mortgage insurance rates.

UWM finished 2018 with $41.5 billion in total loan volume, an all-time high for the company, and a 25% market share. That’s a sales increase of 40% compared with 2017. Also, UWM is the No. 1 non-bank purchase lender in the country and No. 4 the top-producing mortgage lenders overall in the U.S.

The effects of the federal government shutdown on the housing market are wide-ranging and personal--unpaid workers still have to pay their mortgage, while aspiring homeowners might see their loans in limbo.

[caption id="attachment_8411" align="alignright" width="289"] The government shutdown could delay loan closings, according to Zillow.[/caption]

About 800,000 workers aren't being paid, about 380,000 are furloughed and another 420,000 are working without pay, and still must find ways to pay for their housing as the shutdown heads into its third week, according to Zillow. Zillow. Federal employees who are not being paid during the shutdown and own their homes pay an estimated $249 million in mortgage payments each month.

Also, the Federal Housing Administration is operating with limited staff and warns that endorsement of loans may be delayed. That could mean some loans don't close, as that decision depends on the flexibility of individual lenders, leaving buyers unable to complete their purchase. Many lower-income or first-time buyers opt for the FHA insured loans because they often allow for smaller down payments and offer more forgiving credit-score requirements than conventional loans.

An estimated 3,900 mortgage originations are processed each business day backed by federal government agencies, such as the Federal Housing Administration and the Rural Housing Service. It isn't clear what portion of those are delayed, or for how long, because of the limited staff during the shutdown. When those loans are delayed, it most affects those with the greatest hurdles to become homeowners. FHA won't insure reverse mortgages or home-improvement loans during the shutdown.

The Department of Housing and Urban Development does not expect a significant impact as long as the shutdown is brief. But "with each day the shutdown continues, we can expect an increase in the impacts on potential homeowners, home sellers and the entire housing market," the agency says.

In addition, the shutdown could lead to administrative delays associated with loans backed by Fannie Mae and Freddie Mac, two independent agencies that insure the vast majority of mortgages. Those include lenders unable to get verification of employment for borrowers who are federal employees, and potential IRS delays verifying borrower incomes, which could lead to loans being denied.

"Like Americans in the private sector, many federal employees rely every paycheck to cover critical expenses, including housing," said Zillow’s senior economist Aaron Terrazas. "It also could have a significant impact on the overall housing market if it continues to drag on and furloughed workers who also are would-be buyers get cold feet in the absence of paychecks. Buying a home is a huge leap of faith for many, as they bet on continued job security and steady income to finance their home, and consumer confidence is paramount."

Property appreciation is slowing, a sign that the U.S. is nearing the peak of the current housing cycle. Housing prices are 7.3 percent above their long-term pricing trend, with minimal downward pressure on the demand for homeownership, according to "Where Are We Now with Housing: A Report," a study from Florida Atlantic University College of Business.

"All evidence is suggesting that the national housing market is peaking," said Ken Johnson, a real estate economist at Florida Atlantic University College of Business and author of the study. "However, this time around from a national perspective, things should turn out quite differently. "It looks like we're in for more of a very high tide, as opposed to a tsunami, as residential prices peak in this latest cycle. At a minimum, we can expect flatter housing price growth. At worst, we could experience price declines slightly below the long-term pricing trend."

For comparison, at the peak of the last housing cycle, prices were 31 percent above their long-term pricing trend. Johnson's BH&J Index was nearing a score of 1, the highest possible score, in the summer of 2006, indicating extreme downward pressure on the demand for home ownership. Today, that score stands at 0.04.

The study compares the U.S. housing market of 2018 with the housing peak at the end of last cycle in July 2006. The  results of the survey are based on scores from the Beracha, Hardin & Johnson Buy vs. Rent Index, and data from the S&P CoreLogic Case-Shiller 20 City Composite Home Price NSA Index.

United Community Banks Inc. has deployed CompenSafe to automate loan originator and processor commissions.

The community bank has been using CompenSafe to automate commissions for its 80 loan officers and loan processors in an efficient, compliant manner since August. CompenSafe’s built-in integrations with the bank’s payroll provider and Ellie Mae Encompass loan origination system helped make the bank’s transition away from spreadsheets fairly straightforward.

“Before CompenSafe, our commissions process was arduous and ate up a lot of man-hours,” said Mike Davies, president of United Community. “We wanted a more efficient process, something that would stand up to audits and that could be monitored, managed and scaled for growth. (CompenSafe) simplified the commissions process and given our HR, accounting and audit departments a high degree of confidence that everything is done with exactness and thoroughly documented.”

United Community gained the flexibility to control its own compensation schedules, including the ability to specify multiple key-performance indicators and payout tiers. For example, while the bank’s loan originators earn commissions based on the number and volume of loans closed, its processors receive a bonus based on speed and quality metrics. Commission projections are automated in CompenSafe as loans close and are available to loan originators and processors on-demand to help motivate performance.

“CompenSafe helps producers stay motivated and banks can say goodbye to manual, spreadsheet-driven processes without missing a beat when it comes to maintaining a compliant audit trail,” said Lori Brewer, CEO of LBA Ware.