At AIME Fuse on Saturday, the 1st of October, United Wholesale Mortgage (UWM) CEO Mat Ishbia unveiled three initiatives for brokers. The most significant could be TRAC, an alternative to the conventional lender title process. Ishbia claimed that his business had retained lawyers to examine the title and closing papers, ensure that the title was unambiguous, and then assist with the closing procedure.
According to Ishbia, brokers using TRAC and attorney opinion letters (AOLs) can help consumers save up to $1,100 on purchase loans and roughly $800 on refinancing. UClose 3.0, an improved version of UWM’s UClose 2.0 platform introduced in 2018, was also unveiled by Ishbia. Brokers will have three closing choices to select from on the new platform: an in-person closure, a hybrid close, or a virtual close. In addition, Ishbia said that with the latest version, going from clear to close to final closing would now only take a few minutes for lenders.
According to a news release from Ishbia, UClose 3.0 and TRAC are altering how we conduct closings. Thanks to these complete solutions, all parties will benefit from a quicker, more affordable, and more compelling experience. In restricted cases, Fannie Mae said in April that it would accept written legal opinion letters in place of title insurance policies.
In response to UWM’s statement, Diane Tomb, CEO of the American Land Title Association (ALTA), stated that, in contrast to the majority of alternatives, title insurance protects against hidden dangers that are not accessible through searches of public records. When asked about any initial cost savings from employing options like AOLs, Tomb indicated they are highly speculative. To read more on this, click here.