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SKILL GAP #1 · FROM THE UWM CLASS TAKEAWAY
Pricing Mastery Playbook
"Flexibility with pricing and loan terms wins deals." — the Pontiac lesson, turned into a system
1 · How a price is actually built
Every quote is a stack, not a number:
- Base rate/price from the lender's rate sheet (changes daily, sometimes intraday)
- ± LLPAs (loan-level price adjustments): FICO tier · LTV band · occupancy (investment costs more) · property type (condo/2-4 unit hits) · cash-out · loan size (low balances get hit — the sub-$100K question you asked Edward) · state
- − Your compensation (your 220 bps self-gen sits inside the price the borrower sees)
- = Final price, expressed as: par (100.000, no points no credit) · discount (borrower pays points for a lower rate) · premium (rate generates a lender credit toward costs)
The unlock: a "rate" is just one point on a curve. Mastery = knowing the whole curve for a scenario and choosing WHERE to quote from, on purpose.
2 · Your comp — the compliant version of "flexing"
LO Comp Rule (Reg Z) guardrail: lender-paid comp is FIXED by your plan — you cannot cut it deal-by-deal. What you CAN do, compliantly: switch a deal to borrower-paid comp (negotiable per deal, must be paid from borrower funds/price, cannot exceed plan) · use lender pricing concessions (ask your AE — lenders eat basis points to win deals ALL the time, especially month-end) · structure with credits/buydowns so the SAME comp feels different to the borrower. "Flexing" happens through structure and lender concessions, not through ad-hoc comp cuts. Confirm NEXA's borrower-paid mechanics with Richard/your team lead.
3 · The five levers that win deals
| Lever | What it does | When it wins |
|---|
| Lender credit (premium pricing) | Higher rate → cash toward closing costs | Cash-poor borrower · short expected hold · DSCR investor protecting capital for rehab |
| Discount points | Cash now → lower rate forever | Long hold · rate-sensitive borrower · when the point "pays back" in < ~4-5 yrs |
| Temporary buydown (2-1, 1-0) | Seller/builder credit funds year-1–2 payment relief | Purchase w/ motivated seller · payment-shocked first-timer |
| Prepayment penalty (DSCR only) | Longer/stiffer PPP → meaningfully better rate | Buy-and-hold investor who won't refi in 3-5 yrs · NOT for BRRRR (they refi at month 6! Match PPP to exit) |
| Lock strategy | 15/30/45/60-day locks price differently; float-downs exist | Shorter lock = better price when the file is truly ready — speed literally buys rate |
The investor conversation that wins: "Your other quote is 25 bps lower — but with a 5-year prepay on a property you're refinancing in 12 months, that penalty costs you $8,000. My structure is 25 bps higher and $8,000 cheaper. Which loan is actually less expensive?" — THAT'S pricing mastery: total cost over the REAL holding period, not the rate on a flyer.
4 · Rate-shopper defense (script skeleton)
- Never fight the rate; reframe the horizon: "Rates are one input. How long will you actually keep this loan?"
- Break-even math out loud: (cost difference) ÷ (monthly savings) = months to break even. Past their hold period = they're overpaying for a trophy number.
- DSCR shoppers: compare PPP terms, seasoning rules, and cash-to-close — the rate is where lenders HIDE those.
- Your closer, earned honestly: "I spent 18 years on the inside — servicing, underwriting, credit committees. I price the whole loan, not the ad."
5 · The daily rep (10 min — this is how mastery actually arrives)
Every day in the pricing engine: take ONE real scenario (yesterday's Deal Sheet property works) and price it three ways — max lender credit · par · 1 point buydown. Write the three payment/cash-to-close lines in a note. After 30 days you'll quote curves from memory while competitors read rate sheets. Same muscle as scales on the keyboard — you know exactly how this works.
- Ask Richard (University Coach): which pricing engine NEXA provides + a live working session pricing a DSCR deal end-to-end (already in your email to him)
- Log every real quote in HubSpot: scenario, three structures offered, which won, why — your private pricing pattern library
Jermaine Fields · NMLS #2067609 · internal training doc, not consumer-facing · Reg Z comp rules simplified — confirm plan mechanics with NEXA · pairs with: Windshield University (audio) · Post-Detroit Action Plan (UWM answers) · Lender Guidelines library