The UWM Holdings Corp. in Pontiac, a publicly traded indirect parent of United Wholesale Mortgage, today announced that the company earned net income of $301 million and made $29.7 billion in loans for the third quarter ending on Sept. 30.
The net income included a $92.9 million increase in fair value of Mortgage Servicing Rights (MSRs), and diluted earnings per share of $0.15.
“The strength of UWM and the broker channel is on full display,” says Mat Ishbia, chairman and CEO of UWMC. “While others choose to dwell on high mortgage rates and low housing inventory, at UWM we remain focused on growing our market share and the broker channel. We are investing in new technology and hiring new team members to ensure that we are prepared for the eventual turn in rates. In the meantime, we expect to continue to generate significant purchase volume and remain highly profitable.”
Overall, third quarter results showed:
- Originations of $29.7 billion in the third quarter of 2023, compared to $31.8 billion in the second quarter of 2023 and $33.5 billion in third quarter of 2022.
- Purchase originations of $25.9 billion in the third quarter of 2023, compared to $28.0 billion in the second quarter of 2023 and $27.7 billion in the third quarter of 2022.
- Net income of $301.0 million in the third quarter of 2023 compared to $228.8 million in second quarter of the year and $325.6 million the third quarter of 2022.
- Adjusted Earnings Before Interest, Taxes, depreciation, and Amortization (EBITDA) of $112.1 million in the third quarter of 2023 compared to $125.4 million in the second quarter.
- Total equity of $3.1 billion as of Sept. 30, compared to $2.9 billion as of June 30, and $3.4 billion as of Sept. 30, 2022.
- Unpaid principal balance of MSRs of $281.4 billion with a Weighted Average Coupon (WAC) of 4.20 percent as of Sept. 30, 2023, compared to $294.9 billion with a WAC of 3.84 percent as of June 30, and $306.0 billion with a WAC of 3.44 percent as of Sept. 30, 2022.
- Ended the third quarter of 2023 with approximately $2.9 billion of available liquidity, including $900 million in cash and self-warehouse, and $2.0 billion of available borrowing capacity, which includes $1.5 billion under lines of credit secured by agency and Ginnie Mae MSRs, and $500 million under an unsecured line of credit.
“We certainly recognize that many in the industry are facing challenges,” says Ishbia. “With that said, UWM will continue to embrace this cycle as a time for purchase dominance and investment in our future. We are not resting on any laurels, nor are we relaxing. We will continue to stay on offense while much of the industry is on defense.”
Overall, company executives anticipate fourth quarter production to be in the $19 to $26 billion range. Executives anticipate full year 2023 production to be in the $103 to $110 billion range.
