To generate buzz for its upcoming independent public offering, United Wholesale Mortgage (UWM) is offering a special deal on conventional mortgage loans to select borrowers for the next two months.
“We’re going to celebrate this exciting time by kickstarting 2021 with 61 basis points for the next 61 days on all of our conventional W2 borrowers,” UWM President and CEO Mat Ishbia said in a video sent to brokers on Wednesday.
The deal on conventional loans, effective Wednesday, applies to purchase and refinances, as well as FHA streamlines and VA IRRRLS.
“Offering 61 bps for 61 days is game changing for mortgage brokers and their borrowers,” Ishbia said. “This incentive will bring in more business for brokers, and further prove that working with a mortgage broker is a faster, easier, cheaper option.”
In the video sent to brokers, Ishbia said the promotion was about more than just low rates.
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“It’s not just about price – our price is going to be great,” he said. “It’s all about service, closing loans fast, wowing Realtors, wowing consumers, dominating, differentiating. Our competitors are going to follow us, I’m sure. I’m sure they’ll sharpen prices and even brokers who don’t use UWM will get a better price because everyone’s got to chase UWM.”
UWM, the nation’s largest wholesale lender and the second-largest originator in the country behind Rocket Companies, will make its public debut on the New York Stock Exchange on Jan. 22 following its merger with a special acquisition corporation run by Alec Gores.
The combined company is currently trading under the ticker GHIV, but will switch to UWMC in 16 days. UWM is targeting a valuation of $16.1 billion with the IPO, which will see the Ishbia family retain a 93% stake in the company.
As was the case with many lenders, the Pontiac, Michigan-based firm had a record year in 2020. It originated $128 billion in mortgages over the first three quarters, and posted record profits and margins. Ishbia has said he expects business to cool a bit in 2021, but still expects volumes to be high.
In the run up to the IPO, Ishbia has said that in the past he made the choice to prioritize technology over retaining servicing rights. But with the entrance to the public markets – and now flush with cash – UWM plans to hoard those MSRs. In the third quarter, UWM increased MSR from $924 million to $1.41 billion. It also increased its cash-on-hand to $756 million from $570 million in the prior quarter, and increased equity by $556 million to $2 billion.
UWM launched a number of ultra-low-rate mortgage products since the pandemic began, and expects to debut a jumbo product in the first quarter of 2021.