However, originations grow as Mat Ishbia points to dominance of broker channel
Are you a glass half full, or a glass half empty kind of person? That might shape how you look at the latest financial results, issued earlier today, by UWM Holdings Corporation, the giant behind United Wholesale Mortgage.
Those who prefer the brighter side of life, will point to the company’s success in origination volume. In the third quarter, that reached $39.5 billion, with $26.2 billion coming from purchase volume – those figures comparing favorably to last year’s Q3 of $29.7 billion and $25.9 billion respectively.
Meanwhile, those looking through a more negative lense would highlight the overall drop in net income – the company reported $31.9 million in Q3 2024, compared to the previous year’s quarter at $301 million. Still, there were some extenuating circumstances behind that slip – namely a $446.1 million decline in fair value of MSRs alongside a $226.9 million gain on other interest rate derivatives.
There was no doubt, however, as to which camp chairman and CEO Mat Ishbia fell – describing himself as “incredibly proud” of the company’s performance.
“Two things jump out at me,” he said. “First, we exceeded both our volume and margin guidance despite mortgage rates remaining higher than anticipated for most of the quarter. But a dip in rates for just a few weeks pushed us higher than we expected and provided a glimpse into the future. Second, UWM is on pace to have record purchase volume in 2024 despite a generationally slow existing home sales market.”
Ishbia also lavished praise on the broker channel, noting that it “continues to dominate the purchase market.”
“Our results in Q3 also demonstrate how well UWM and the channel are positioned to capitalize on the inevitable increase in refinance volume when it comes,” he said. “Right now, UWM is so much better positioned than we were prior to the last refinance boom. We have more capacity, more advanced technology, and even better service than we could offer our broker partners at that time. Simply put, our operational fitness is at an all-time high and you'll only see us accelerate from here.”
Any thoughts on the latest UWM financials? Leave a comment below.
