United Wholesale Mortgage Reports Q1 Profits Amid Rising Interest Rates

UWM Holdings Corp., the publicly traded indirect parent of Pontiac’s United Wholesale Mortgage, today announced its results for the first quarter (Q1) of 2022, which showed a loan origination volume of $38.8 billion, down from $49.1 billion in Q1 of 2021.
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United Wholesale Mortgage in Pontiac reported a decline in net income and loan origination volume in the first quarter of 2022 as compared to Q1 of 2021. // Courtesy of UWM
United Wholesale Mortgage in Pontiac reported a decline in net income and loan origination volume in the first quarter of 2022 as compared to Q1 of 2021. // Courtesy of UWM

UWM Holdings Corp., the publicly traded indirect parent of Pontiac’s United Wholesale Mortgage, today announced its results for the first quarter (Q1) of 2022, which showed a loan origination volume of $38.8 billion, down from $49.1 billion in Q1 of 2021.

“This quarter, we demonstrated that our business can continue to be profitable in significantly different market conditions than what we’ve seen over the past two years,” says Mat Ishbia, chairman and CEO of UWMC. “We earned this position by building a business over the past 36 years that can take advantage of what the market provides.

“We are seeing independent mortgage brokers grow in both their share of market and loan officer population. Our scale and agility coupled with the momentum in the broker channel is driving our ability to separate even further from the pack.”

Other highlights include a net income of $453.3 million, down $860 million in Q1 of 2021, and diluted earnings per share of $0.22, down from $0.33 year-over-year. The loan origination volume included $19.1 billion in purchase volume, which is a 56 percent year-over-year increase. Net income for the first quarter was inclusive of a $172.0 million increase in fair value of mortgage servicing rights (MSRs).

The company reported a total gain margin of 99 basis points (bps) in 1Q22 compared to 219 bps in Q1 of 2021. Total equity was at $3.2 billion at the quarter’s end was up compared to $2.8 billion last year. The unpaid principal balance of MSRs increased to $303.4 billion with a weighted average coupon (WAC) of 3.04 percent was up as compared to $221.0 billion with a WAC of 3.00 percent year-over-year.

BOLT, the latest underwriting technology from UWM saw adoption increase by approximately 52 percent from the fourth quarter (Q4) of 2021 to Q1 of 2022. The technology cut application to clear to close (CTC) on conventional loans by an average of approximately 4 calendar days, while improving underwriting efficiency.

The company maintained an average CTC of approximately 18 business days, while management estimates an industry average of 43 days during the Q4 of 2021.

“UWM has built a strong business that will continue to thrive in any market environment,” Ishbia says. “This purchase market will act as the catalyst for accelerated broker channel growth. Brokers are experts in purchase transactions, making mortgages faster, easier, and cheaper for borrowers across America.”

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