UWM Becomes Top Mortgage Lender in the Nation

Just as Rocket Mortgage overtook Wells Fargo, United Wholesale Mortgage (UWM) has now overtaken Rocket to become the nation’s top mortgage lender overall.

During the third quarter, the Pontiac, Michigan-based wholesale lender originated $33.5 billion in home loans, up from $29.9 billion in the second quarter.

While this was a big year-over-year drop from the $63 billion in the third quarter, it was still enough to claim the top spot.

This is even more impressive considering the fact that UWM works perfectly mortgage broker Through wholesale lending channel.

They don’t operate in the retail, consumer-facing space, which also tells you that mortgage brokers are back in the lead.

How UWM Ranked Unseated Rocket Mortgage #1

UWM, which refers to itself as the historic #1 wholesaler and #1 purchase mortgage originator in the US, finally took the top spot for total origination volume.

As mentioned, their $33.5 billion funding through the third quarter of 2022 was enough to beat the Detroit-based Rocket’s $25.6 billion.

In fact, their loan amount was almost 31% higher than that of the Rockets during the three months ending September 30, 2022.

It was also much higher than previously #1 Wells Fargo, which only had $21.5 billion during the quarter, with almost half of their volume coming through. reporter channel,

Meanwhile, Chase managed only $15.2 billion, reflecting the large banks’ declining share of the total mortgage market.

How UWM was able to generate so much more than other mortgage companies is thanks to their “Game On” pricing initiative launched in late June.

This was an extension of the lender’s “Compete and Beat program”, which promised to beat the pricing of the top 20 lenders by one basis point.

But this time, by reducing rates on all loans by 50 to 100 bps (.50%-1%). This appears to be enough to capture even more market share, especially in an environment of rising mortgage rates.

Of course, this means reducing per loan to increase volume, something their rivals may not be interested in.

UWM aims to be #1 overall by 2024

Matt Ishbia, CEO of UWM, said in a press release that the company’s goal was to become the #1 overall mortgage lender in the country by 2024.

It is June 2021, which means the company took only 17 months to fulfill its promise.

When Eshbia became president of the UWM in 2009, he was the 75th ranked wholesaler in the country, and not even in the top 150 overall.

By 2015, UWM became the top wholesale lender in the country, a ranking it has held ever since.

But they were still second overall to the Rockets, and actually third from Wells Fargo in 2021Only $227 billion in funding compared to Rocket’s $343 billion.

However, they’ve now got at least a quarter of a share of the top spot, and the next target will probably be to win the entire year.

In terms of product composition, UWM financed approximately $28 billion in home purchase loans and approximately $6 billion in mortgage refinance,

Purchase loans included $19.2 billion conventional loan volume, $7.6 billion in government debt volume (FHA,VA), and in about a billion jumbo loan,

On the referee front, approximately $4 billion was traditional, $1.6 billion was government, and $195 million was jumbo.

So far in 2022, the company has raised about $102.2 billion in funding, which is significantly less than its 2021 total.

this is indicative of mortgage rate Which are closer to 7% compared to 3% seen a year ago.

Meanwhile, Rocket Mortgage has raised $114.1 billion in funding so far, meaning UWM will have to make a big effort in the fourth quarter to top that for all of 2022.

But it’s potentially within reach if UWM’s fourth quarter mirrors its third quarter. stay tuned.

(Photo: evelyn giggles,

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