In its September 3 Points video, United Wholesale Mortgage talked about the 1% down program, saying it’s still alive, well, and a bigger competitive advantage than ever before.

In late July, Freddie Mac announced what looked like the end of the 1% down mortgage, saying it will no longer allow lenders to contribute gifts or grants to reach the 3% down payment requirement.

By working with Freddie on its 3% down program, also known as the Home Possible Advantage program, many lenders began to roll out 1% or even zero down mortgages. However, it seems the mortgage giant’s latest announcement to end the program did not kill it completely.

UWM CEO Mat Ishbia explained some lenders still offer 1% down mortgages on their own, and that brokers with access to these programs now have a greater competitive advantage than before.

“If done the right way it’s one of the best programs on the market, because basically the borrowers are getting the same rate and deal as if they put their own 3%, but they’re getting free money from the lender,” Ishbia said.

In July, United Wholesale and Quicken Loans each expressed their disappointment in Freddie’s decision to end the program. While United Wholesale insisted it would continue to offer the program to its consumers, Quicken said they didn’t have anything planned yet to fill the hole but remain excited about the future thanks to their other mortgage offerings, such as Rocket Mortgage, their online digital mortgage.  

In his video, Ishbia also touched on the much-debated future of the director of the Consumer Financial Protection Bureau. HousingWire’s Brena Swanson recently reported rumors around CFPB Director Richard Cordray running for Ohio governor are reaching a boiling point as the debate for the Ohio Democratic Gubernatorial Debate quickly approaches.

However, Cordray has yet to announce anything. Ishbia explained that whether Cordray steps down or finishes his term, the difference will not be a significant change for the mortgage industry.

Watch United Wholesale’s full video below: