CEO says the company is still "well-positioned to succeed"
United Wholesale Mortgage, the third-largest US residential originator, has released its financial results for the full year 2021.
As lower gain-on-sale margins and servicing markdowns took their toll, UWM’s net income fell from $3.4 billion in 2020 to $1.6 billion in 2021. At the end of December, its total gain margin was 1.14%, down from 2.49% a year ago. Overall, UWM’s revenue sank to $605.5 million in Q4 2021, down from $1.8 billion in Q4 2020.
The non-bank, however, noted that its funded loan volume grew from $182.5 billion to $226.5 billion year over year – making it the largest wholesale lender by closed loan volume with roughly 31% market share of the wholesale channel in 2021. The company registered total equity of $3.2 billion, up from $2.4 billion.
Commenting on the figures, UWM chairman and CEO Mat Ishbia said: “2021 was a fantastic year for UWM with incredible milestones: from becoming a public company to delivering another year of record production. We have continued to be relentless about developing and launching innovative technology solutions like BOLT, the most advanced underwriting system in the industry, to enable sustainable and profitable growth for both UWM and our broker partners. We also delivered our best fourth-quarter production of all time, coupled with growth in the broker channel.”
Read more: United Wholesale Mortgage offers free home appraisals
The lender’s purchase originations for the year ended 2021 was $87.3 billion, a sequential gain of 103% from $42.9 billion in 2020. Its unpaid principal balance of MSRs also increased from $188.3 billion to $319.8 billion. UWM had non-funding debt of $2.16 billion in Q4 2021 compared to $1.16 billion in Q4 2020.
“As the industry navigates rising rates and low housing inventory, UWM is well-positioned to succeed by doing what we do best - proving a mortgage broker is the fastest, easiest and most affordable option for borrowers. With continued channel growth and elite industry-leading service, we are poised to reach our goal of becoming the nation’s #1 overall mortgage lender,” Ishbia said.
