Interest Rate Risk Modeling
This term describes the potential loss in value of a mortgage portfolio due to adverse interest rate movements.
What is Interest Rate Risk?
This is the max CYP allowed on a single loan file.
What is 40 bps max?
This is the web-based software we use to manage the Non-Agency and S&D pipelines.
What is Airtable?
This is the application used to run best execution.
What is Innovient?
This market data service is used via an internal application to help determine pricing.
What is TradeWeb?
This trading practice is responsible for limiting downside risks and potential losses.
What is Hedging?
This is the total warehouse space we have.
What is $12.8B?
This type of model evaluates how likely any given loan is going to close, including factors such as the current market, loan status, or even the day of the week.
What is Fallout Model or Pullthrough Model?
Clients earn LO extension bank days through these performance measures.
What are Pro Ranking performance, watching fast break/inside pass videos, using UWM exclusives, etc.?
These loans have material defects and are sold at a discount.
What are Scratch & Dent loans?
These are the types of loans Pooling & Delivery are responsible for.
What are Agency loans? (Government/Conventional is also acceptable)
This investor receives the largest portion of Non-Agency loan products from UWM.
Who is Goldman Sachs?
This is the more official term for a pool of mortgage loans securitized by Fannie Mae, Freddie Mac, or Ginnie Mae.
What is a Mortgage-Backed Security?
These are our largest Warehouse lines.
What are JPM and BOA?
This software, abbreviated as QRM, is utilized by various teams in capital markets to pool and trade loans, manage risk positions, and assess loan valuation.
What is Quantitative Risk Management?
This is UWM’s relock policy and fee.
What is worse case pricing + 10bps; if pricing got better, then just a 10bps relock fee?
This is the primary metric used for the Non-Agency Pipeline.
What is Ship-to-Fund Timeline?
These are the two main types of pools we deliver.
What are NPs (New Prods) and Specs?
This represents the amount of profit that is priced into the loan.
What is margin?
This acronym is used in mortgage forwards for hedging our unsold loans.
What are TBAs?
This is the average advanced rate for agency loans.
What is 98%?
This equation is employed to determine the current value of any given loan and is essential in calculating the Profit and Loss in UWM's portfolio.
What is Fair Value?
This describes what TRAC is and its benefits to clients/borrowers.
What is a different title company option, easier and more streamlined for borrowers, and also cheaper by an average of $1,500?
These are the two processes that must be completed for a loan to be ready for purchase.
What are Due Diligence and Collateral?
This is the main reason we do not pool 100% to best execution.
What is Repmix?
This is considered a significant market change that could trigger a rate sheet update, also known as a 'reprice'.
What is a movement of 4 ticks (12.5bps)?
This trading term refers to 1/32 of a point or the equivalent to roughly 3bp in price.
What is a tick?
This is the internal wire cutoff for wholesale loans.
What is 4:30 PM?
This financial instrument is used to hedge against rate fluctuations.
What are TBA Forwards?
Name three different Non-Agency products.
What are Bank Statement, Investor Flex, HELOC’s, and Cashout 90?
This is the most common reason a loan will go Scratch & Dent.
What is Misrepresentation (Misrep)?
These are the VLIP and LIP goals.
What is 6% VLIP and 25% LIP?
For loans less than 2 years seasoned or over 5 years seasoned, this LTV must be reflected for MI to be canceled.
What is 75%?
These are consistently the most important loan characteristics or features that drive the decision to form spec pools based on expected slower prepayment speeds.
What is loan amount or geographic location?
This is the newest warehouse bank.
Who is RBC?