UWM launches a game-changer: “MI Buster”

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United Wholesale Mortgage today announced yet another initiative to boost purchase business. The wholesale lender will eliminate mortgage insurance for borrowers who put 10% or more down on conventional loans starting at $200,000, as well as high-balance loans with an LTV between 80.01% and 89.99%. Typically, MI premiums are paid monthly until the borrower accumulates 20% equity.

UWM is calling the product “MI Buster.” “By avoiding mortgage insurance with less money down, borrowers can now decide if they want to use those savings to purchase more home, have a lower monthly payment or maybe both,” UWM president and CEO Mat Ishbia said in a statement Wednesday.  Mortgage insurance of course isn’t there to protect borrowers; it’s there to protect lenders should the borrower stop making payments. UWM still has high credit requirements for borrowers, so it apparently sees little underwriting risk but real upside for its broker partners.