Pontiac’s United Wholesale Mortgage reported closed loan volume exceeding $54.2 billion in the third quarter, an 81 percent increase from the $29.9 billion loan volume closed year-over-year.
UWM is merging with Los Angeles’ Gores Holdings IV Inc. The deal is expected to be completed in the fourth quarter. Upon the consummation of the business combination, the joint company will go public. Both announcements were made in late September.
UWM also reported net income of $1.45 billion, compared to $198 million from the previous year. Through the third quarter, UWM closed a year-to-date total of $127.8 billion in production. Its 2019 production record was $107.8 billion.
“This is our best quarter in the company’s 34 years, showing that borrowers are recognizing that independent mortgage brokers offer better rates, greater speed, and deeper experience,” says Mat Ishbia, president and CEO of UWM. “I’m grateful to the over 6,800 team members whose commitment to superior service, together with our proprietary industry-leading technology, support the success of our broker clients by enabling them to offer a best-in-class borrower experience.”
The company achieved record gain margin of 318 basis points compared to 129 basis points the previous year. Its equity increased by $556 million to more than $2 billion while increasing cash and cash equivalents by $185 million from the end of the previous quarter.
It also increased the Unpaid Principal Balance of Mortgage Servicing Rights from $109.4 billion at the previous quarter end to $153.1 billion.
Finally, it launched Blink+, an all-in-one online borrower-facing application portal and point of sale, loan origination system, and customer relationship manager for loan officers, as well as UWM InTouch, a mobile app that provides brokers access to the full origination process, from underwriting through clear to close.
“The innovative moves we are making now to streamline our technologies and further increase speed from loan submission to clear-to-close will support the long-term growth of the broker channel and help realize our aspiration of becoming the nation’s leader in mortgage originations,” Ishbia says.
For more information on Ishbia and UWM, check out DBusiness’ September/October 2020 cover story.