The mortgage giant has revealed its second-quarter earnings
UWM Holdings saw profits surge in the second quarter of the year, increasing on both a monthly and year-over-year basis as funded mortgage volume spiked.
The parent company of mortgage giant United Wholesale Mortgage announced originations of $31.8 billion in Q2, up from $22.3 billion the prior quarter and $29.9 billion the same time last year. Purchases helped drive the majority of that that uptick, accounting for $28 billion of total originations.
Those figures were prominent factors in overall net income of $228.8 million, a return to profit after a $138.6 million net loss in the first quarter, as well as adjusted diluted earnings per share of $0.11 and a jump in overall revenue to $587.5 million.
For the third quarter, UWM said it expected production of between $26-33 billion and a gain margin of 75-100 basis points.
The company’s chairman and CEO Mat Ishbia said the results, which arrived amid “a historic decline in industry-wide origination volume during 2023,” reflected what he described as the company’s “winning formula” – namely, its business model and the status of the broker channel as the best place for consumers to borrow.
“Other management teams seem to have forgotten that during a mortgage boom, the majority of the opportunity is in the first six months,” Ishbia said in remarks accompanying UWM’s earnings results. “Companies that are not prepared for those events react late, hire late, train late and miss most of the opportunity.
“UWM is doing the work and making the investment now to make the most of the opportunity when it inevitably comes while continuing to be profitable and continuing to reward our shareholders with a regular dividend.”
