Brokers say it’s ‘business as usual’ with UWM despite loss, capital raise

“There hasn’t been any change at all from a day-to-day perspective,” said Andi Numan of Swift Home Loans, which sends most of its production to UWM. “As long as we submit loans, they get processed and underwritten right away.”

Numan said he isn’t worried about the recent financial headlines. From the perspective of Swift Home Loans, “it is what it is” as long as “it doesn’t mess with anything,” he said. 

Pricing vs. service 

Brokers say UWM is no longer the sharpest on price in the wholesale market, but they believe the lender’s technology, turn times and ability to handle high daily volumes often outweigh modest pricing gaps.

“UWM has, for quite a while, not been the best-priced lender out there; they’re actually one of the higher ones, but we use them because they’re so easy to use, because they are efficient,” said Mike Kortas, CEO of NEXA Lending.

Shannon Hoff, a broker at Answer Home Lending Inc. who moved into the channel about a year ago, said she typically prices loans across 43 wholesale lenders. UWM, which she said used to rank in her top five or six options, was closer to 10th or 15th this week.

“A couple of loans that were priced out Tuesday, they’re maybe 50 basis points different,” Hoff said. “Their pricing, from what I understand, hasn’t been as good as the past. But when they need loans to come through, then they have great pricing for like a week. The thing with UWM is that their systems are better than anything.”

Numan said that for certain scenarios, the operational certainty can justify slightly worse pricing.

“Our job is to always compare and get what’s best for the client,” he said. “But sometimes if you have a complex loan or a specific loan type, going with UWM in exchange for 5 basis points makes a world of difference because it’s more than just pricing. Are you going to be able to close that loan? How long is it going to take to close?”

To improve pricing, UWM often offers incentives to brokers – the most recent being a 90-bps discount on single loan submissions through Sept. 8.

The scale of UWM’s loss and its strategic moves have sparked questions about whether the company will pull back on support programs that have helped it cement relationships with brokers.

Kortas said his main concern was whether UWM might cut back on initiatives like Success Track, the company’s in-person and virtual training program. NEXA flies “a few hundred people a month” to UWM’s Pontiac campus for Success Track, Kortas said.

“My understanding is that they’re actually doubling down on those because it’s the in-person relationships that have really helped them over the years,” he said, adding that he has not heard about any significant changes at this time.

Ishbia pushes back

UWM, the largest wholesale mortgage lender in the country by volume, has moved quickly to counter questions about its financial health and long-term sustainability following the quarterly loss and capital raise. In a recent social media post addressing the scrutiny, Mat Ishbia, UWM’s president and CEO, said the company remains strong.

“At the end of the day, what matters is the company’s as strong as ever. … Even when we went public at a $16 billion value, we were never stronger than we are today,” Ishbia said.

He framed the attention as a function of UWM’s scale and the broker channel’s recent gains.

“We’re all together. I might be the one they like to talk about, but it’s about brokers,” Ishbia said. “Because guess what, brokers? You’ve doubled your market share in the last five years. You think retail loves that? You think anyone else in the industry besides brokers likes that? Nobody likes that, right? You know who else has doubled the last five years? UWM. Think anyone likes that? Nobody likes that.”

Ishbia said he pays attention to criticism. “Someone said to me, ‘Ignore the noise.’ I don’t ignore the noise. I embrace the noise. I read the noise,” he said. “Anyone see the thing about the 18th biggest lender last week and what happened to them? Nobody gives a shit, right? They only care about the No. 1 guy.”