What’s next for United Wholesale Mortgage?
May 17, 2021
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In today’s HousingWire Daily episode, HousingWire Digital Media Manager Alcynna Lloyd joins HousingWire Editor in Chief Sarah Wheeler to discuss the hottest topics coming across HousingWire’s news desk.
In this episode, Lloyd and Wheeler discuss HousingWire Managing Editor James Kleimann’s recent HW+ article which dives into United Wholesale Mortgage’s Q1 earnings and examines what the mortgage lender’s plans are for growth.
The pair also talk about the FHFA’s final ‘living wills’ rule and discuss what could happen if mortgage rates don’t rise this year.
For some background on the interview, here’s a brief summary of the article on UWM:
Mat Ishbia isn’t sweating a projected drop in gain-on-sale margins, all the way down to 75 to 110 basis points. Quite the contrary. In his estimation, a higher rate environment and hyper-competitive pricing will provide United Wholesale Mortgage an opening salvo to win a war of attrition and build an even bigger army of loyal mortgage brokers. Anybody can make a killing in a market like 2020. But those days are over.
On UWM’s first-quarter earnings call, Ishbia offered up a vision for the future. Those gain-on-sale margins that had reached their zenith in the third quarter of 2020? They have gradually been falling back to earth. And they’re going to keep falling, Ishbia said. For UWM, that means 75 to 110 bps may be the norm for a few quarters. It depends on the 10-year.
“Will margins compress? Absolutely, they will compress,” the UWM CEO told analysts and investors on the earnings call. “They usually go from all-time highs to all-time lows. That’s what happens in the mortgage biz, and then they’ll settle in, [to] normal numbers. We didn’t expect them to go down to this point in this part of 2021, but we’re excited about it because we’re going to still produce a lot of income, where our competitors might not. And at the same time, we’re going to take market share and show you that we are the elite mortgage company.”
HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Jones.
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