UWM moves to dual-score model, auto-selects best result

United Wholesale Mortgage (UWM) will now obtain both a FICO score and a VantageScore 4.0 on every credit pull, and it will automatically use the strongest qualifying score for each borrower, the company announced Tuesday. The Pontiac, Michigan-based wholesale lender said the change is designed to consistently deliver the lowest possible payment, cheaper mortgage insurance and lower all-in fees by defaulting to whichever score yields the best eligible pricing for the borrower. UWM said early internal research shows that using all available scores “could save many borrowers thousands” over the life of the loan. For mortgage brokers, the enhancement removes the need to choose between scoring models. UWM’s system will compare FICO and VantageScore 4.0 results behind the scenes and apply the higher qualifying score that meets program requirements. The move comes as large lenders reposition around new credit models supported by the Federal Housing Finance Agency (FHFA). In early September, FHFA announced that all Fannie Mae– and Freddie Mac-approved lenders could use either Classic FICO or VantageScore 4.0. At the end of last month, FHFA Director Bill Pulte said the enterprises would app...