In any sales business, whether times are good or bad, companies conduct promotions in an effort to bring people in the door.

This is also true in the real estate finance industry, not only on the B2C side, but among wholesalers looking to boost their market share among mortgage brokers. Even vendors have turned to discounts to attract customers.

These promotions have another impact, by reducing the cost to the consumer for obtaining a mortgage, at least during the duration of the sale.

Below are some recent announcements on the start or continuation of promotions by lenders and vendors.

UWM extends government loan promo

United Wholesale Mortgage, which is known in the mortgage industry for its liberal use of promotions to drive business, extended its promotion that removes the loan level pricing adjustments for Federal Housing Administration, Veterans Affairs and U.S. Department of Agriculture mortgages.

The borrower would need to have a FICO score over 600 to qualify. Removing the LLPAs would improve pricing on these loans by up to 150 basis points, UWM said.

With the extension, the promotion is currently set to expire on May 31.

Rate extends VA fee waiver offer

Rate, the Chicago-based lender formerly known as Guaranteed Rate, has run a VA fee waiver promo for almost seven years.

In that time, the company has waived over $65 million in lender fees, helping over 47,000 eligible borrowers obtain home financing, it said

“While others talk about serving veterans, we’ve taken real action,” said Victor Ciardelli, CEO and president, Rate Cos., in a press release. “It’s not just about the number. It’s about doing what’s right every single day.”

Rate’s efforts provide direct savings of up to $1,640 per loan for veterans and their families. In the past two years combined, $18 million of fees were waived. Its goal for 2025 is $20 million.

A&D expands second mortgage criteria

A&D Mortgage has made what it termed as significant improvements to its second mortgage offerings, including a 25 basis point rate reduction.

It added a 20-year term product, in both full and alternative documentation versions.

For its full doc seconds, A&D is giving a 1-point pricing credit and these loans are available up to a 90% combined loan-to-value ratio.

This offering is part of A&D’s 20 Years of Yes celebration. In January, it agreed to buy the former Flagstar third-party originations business from Mr. Cooper.

“As we celebrate 20 years of saying ‘yes,’ our focus remains the same: helping our partners outmatch the competition,” said Max Slyusarchuk, CEO of A&D, in a press release. “These latest improvements to our second mortgage program are part of our promise to keep raising the bar.”

Finlocker eliminates verification costs

In a move that the company said benefits both borrowers and lenders, Finlocker will be eliminating verification costs for income, employment, and assets at all stages of the mortgage process.

That promotion covers everything from pre-qualification to reverification prior to closing — as long as the consumer uses an originator’s app, which is powered by Finlocker.

“The current verification system creates unnecessary friction and passes significant costs to consumers,” said Henry Cason, Finlocker CEO, in a press release. “By covering these expenses, we’re creating a rising tide that lifts all boats — consumers get more affordable mortgages, lenders reduce expenses and close loans faster, and our industry takes another step toward truly digital mortgages.”

For example, Finlocker said it could cost as much as $280 per application to verify employment. That number is according to a March 2024 letter from the Community Home Lenders of America protesting fees associated with Equifax’s The Work Number service.