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UWM unveils alternative to traditional lender title process

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United Wholesale Mortgage (UWM) CEO Mat Ishbia announced three initiatives for brokers at AIME Fuse on Saturday. The most influential may be an alternative to the traditional lender title process called TRAC. Ishbia said his company has hired a lawyer to review the title and closing documents to ensure the title is clear before facilitating the closing process.

Ishbia said brokers using Letters of Attorney (AOL) through TRAC can save borrowers up to $1,100 on purchased loans and about $800 on refinancing.

Ishbia also announced the deployment of UClose 3.0, an enhanced version of UWM’s UClose 2.0 platform launched in 2018. This new platform will allow the broker to choose from his three closing options: face-to-face, hybrid or virtual close. With the new version, Ishbia says it takes just a few minutes from clear to close to final closing.

“UClose 3.0 and TRAC are changing the way we close,” said Ishbia in a press release. “These exclusive services enable a faster, cheaper and more efficient experience for all parties involved. Brokers will now have access to a more streamlined platform, It guides us step-by-step through the closing process with greater transparency, smarter technology and enhanced controls.”

Ishbia also announced Safe Check, which allows borrowers to undergo a pre-check for valuation exemption before submitting a loan. This is a soft pull credit check that helps move the process forward without initiating trigger leads to your broker’s competitors.

in April, fannie mae announced In “limited circumstances” you will receive a written opinion from an attorney in lieu of title insurance.

According to the announcement, lenders “must ensure that their loans are covered by either a title policy (including any required approvals) issued by an acceptable insurance company or a title opinion issued by an attorney. there is.”

Fannie’s condition for using AOL is that it is from an attorney who is properly licensed and has malpractice insurance covering title opinions “at amounts generally prevailing in the jurisdiction.” That’s it.

In addition, AOL should address the lender and all interested parties, be generally accepted in the real estate jurisdiction, provide gap coverage for the closing-to-record period, and include certain other information .

CEO Diane Toomb American Land Ownership Association (ALTA) responded to the UWM announcement. “Title insurance, unlike alternatives, protects against hidden risks that cannot be discovered by searching public records. For example, one of the core protections of title insurance is that the This is just one of many coverage gaps that are not covered by alternative products and are of great concern to consumers.

“The title industry plays a key role in the ability of American households to build wealth through homeownership. By facilitating the growth of the mortgage market Low alternative protection to title insurance makes home ownership less sustainable, especially among first-time homebuyers and those who need it most: low-to-medium It creates unnecessary risk for income consumers,” Tomb continued.

Regarding the potential cost savings from using alternatives such as AOL, Mr. Toomb said the initial cost savings were “very speculative. Consumers bear additional risks and face the title company’s law in a title dispute.” Taking shortcuts to save a little money is currently only hurting homeownership opportunities nationwide. ”

this The story was updated on October 2nd with additional comments from ALTA CEO Diane Tomb.

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