What does UWM’s policy mean for mortgage brokers?
March 22, 2021
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In today’s HousingWire Daily episode, HousingWire HW+ Managing and Magazine Editor Brena Nath joins HousingWire Managing Editor James Kleimann to discuss the hottest topics coming across HousingWire’s news desk. In this episode, Nath and Kleimann discuss the ongoing saga between United Wholesale Mortgage and Rocket Mortgage, and examine how UWM’s policy could affect the broker community going forward.
For some background on the interview, here’s a snippet of the latest HW+ coverage on UWM’s recent announcement:
In the wake of an ultimatum that mortgage brokers couldn’t use Rocket Pro TPO and Fairway Independent Mortgage while still sending loans to United Wholesale Mortgage, Mat Ishbia declared victory.
In a statement issued after Monday’s deadline, the president and CEO of UWM said that more than 10,000 broker shops have pledged to no longer work with Rocket and Fairway, whom he said have been working behind the scenes to destroy the broker channel.
“I’ve received hundreds of calls and emails from mortgage brokers across the country and have been blown away at the positive response we’ve received, along with the sheer number of shops who have locked arms with us because they felt it was the right thing to do,” Ishbia said. “We’re going to be able to look back at this as a pivotal moment that helped catapult independent mortgage brokers’ growth.”
However, such a declaration leaves out important context. Before Ishbia issued his ultimatum on March 4, UWM worked with roughly 12,000 broker shops. Though Ishbia initially said the edict would force about 3,000 brokers to make a decision, UWM later said 4,600 broker-owners were affected. Of those 4,600, UWM said about 3,000 accepted the addendum. About 400 declined to sign and 1,200 never responded, which means they are not able to send new loans to the Pontiac, Michigan-based lender.
HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.
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