Advocacy group claims they want to safeguard competition in the industry
Following United Wholesale Mortgage’s controversial announcement, non-profit organization Consumer Action for a Strong Economy (CASE) has rolled out a new campaign that it says aims to protect competition in the mortgage industry.
The advocacy group was alarmed by the wholesale lender’s decision to cut ties with brokers working with rivals Rocket Mortgage and Fairway Independent Mortgage Corporation, saying that it will harm mortgage brokers and consumers looking to get the best mortgage and refinancing options possible. The group also said that the UWM’s “anti-competitive policy undermines brokers’ ability to effectively serve their clients,” who deserve to have a competitive marketplace and a choice in the matter.
“Like all consumers, American homebuyers and homeowners looking to refinance deserve access to diverse and affordable options to identify the financing program that best fits their needs,” CASE president Matthew Kandrach said in a statement. “Competition in the marketplace is the best way to ensure the best options for consumers, but UWM’s ultimatum will only limit resources for brokers and ultimately force consumers to pay the price.”
The project, called Save Broker Choice, shines a spotlight on this issue and emphasizes the importance of consumer choice in selecting a mortgage lender. Save Broker Choice also calls for borrowers and brokers to sign a petition to stop UWM’s move.
“Competition is a cornerstone of the free market economy, driving American ingenuity and keeping costs affordable for consumers,” Kandrach said. “The mortgage sector is certainly no exception, and more options for brokers means more, and likely better, options for consumers.”