Pontiac-based UWM Holdings Corp., the publicly traded indirect parent of United Wholesale Mortgage, announced its first quarter 2021 net income was $860 million, up from the previous year’s $20.3 million. The quarter was the company’s first as a public company.
The board also declared a quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock and authorized a share repurchase program of up to $300 million over the next 24 months beginning today.
“The first quarter of 2021 was not only the best first quarter in our 35-year history, it also marked our first quarter as a public company and solidified our foundation for growth,” says Mat Ishbia, chairman and CEO of UWM. “We believe we now have the capital, liquidity, technology, campus, and staffing necessary to further scale our business and grow to become the largest mortgage originator in the country.”
The company reported originations of $49.1 billion in loan volume, a 16 percent increase from the previous year’s $42.4 billion loan volume. It also had a total gain margin of 219 bps in the first quarter, up from 2020’s 95 bps.
Increased total equity was $2.78 billion, compared to $681.5 million year-over-year. Its unpaid principal balance of mortgage servicing rights increased to $221 billion, up from $85.6 billion the previous year.
The company maintained an average application to clear to close time of about 17 days in the first quarter, compared to 18 days in the final quarter of 2020. Management estimates the first quarter industry average remains in line with previous performance, which was 52 days for the fourth quarter 2020.
UWM Holdings reported a 1.54 percent 60+ days delinquency and a 1.44 percent forbearance rate, down from the industry averages of 4.3 percent and 4.8 percent, respectively.
Over the course of the quarter, team members completed 457,052 training hours. The company also continued to purchase food from locally owned restaurants and had it delivered to homeless shelters, serving nearly 10,000 meals.
The company also hired Desmond P. Smith, previously an executive for Fannie Mae, as the company’s first chief growth officer.
To update technology, the company continued its investment into machine learning and robotic process automation to further advance operational excellence. It also invested in its technology platform and on-site teams, resulting in operational efficiencies designed to reduce costs and closing times and increase loan processing speed.
UWM Holdings also continued investments in the cloud and technologies that increase underwriting efficiency such as automated document recognition and optical character recognition.
The company says it anticipates second quarter production to be in the $51 billion-$55 billion range with expected gain margin between 75 and 110 bps.