Mortgage lender strategies shift as Fed signals rate cuts

"Chase Home Lending, for instance, rolled out a limited-time purchase rate sale in August and is now offering discounted pricing on rate-and-term and cash-out refinances through Sept. 21. The bank has also introduced a home equity line of credit (HELOC). It's difficult to predict where rates will go exactly as they don't always move in predictable ways. While we are seeing positive indicators of lowering rates, there is always the possibility for rates to go up again, said Erik Schmitt, consumer direct executive for Chase Home Lending."

"Top lender United Wholesale Mortgage (UWM) has chosen to extend its 90 basis-point incentive for rate-and-term refinances until Oct. 1. Originally set to expire on Tuesday, this offer applies to conventional, jumbo and Federal Housing Administration (FHA) rate-and-term refis, as well as those covered by the U.S. Department of Agriculture. Additionally, it includes FHA Streamline products, along with Interest Rate Reduction Refinance Loans (IRRRLs) and Type 1 cash-out loans available through the U.S. Department of Veterans Affairs (VA)."

"Michael Gaines, senior vice president of capital markets at Cardinal Financial, said lenders are adapting by taking a more agile approach. At Cardinal Financial, we've adapted by emphasizing product diversity and operational efficiency, Gaines said. Through our custom-built loan origination system, Octane, we can move quickly, control workflow, and deliver pricing that reflects real-time market condit"

Large lenders are introducing limited-time mortgage promotions, discounted refinance pricing and a new HELOC to address affordability and borrower demand. Rate movements remain uncertain, and lenders acknowledge both signals of lower rates and the risk of increases. UWM extended a 90 basis-point incentive for many rate-and-term refinance products, including conventional, jumbo, FHA, USDA, FHA Streamline, IRRRLs and VA Type 1 cash-out loans, to help brokers stay competitive. Cardinal Financial emphasized agile responses through product diversity and operational efficiency, using a custom loan origination system, Octane, to speed workflow and reflect real-time pricing.

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