UWM Holdings Corp. in Pontiac, the publicly traded indirect parent of United Wholesale Mortgage, today announced its results for the second quarter that ended on June 30, during which the company posted a net profit of $76.3 million and mortgage originations of $33.6 billion.
The net income number was significantly lower than the $180.5 million it showed in the first quarter of the year and the $228.8 million it reported in Q2 a year ago.
Loan originations of $33.6 billion in Q2, on the other hand, compare favorably to Q1 ($27.6 billion) and Q2 2023 ($31.8 billion). Purchase originations in Q2 also were up to $27.2 billion, compared to $22.1 billion in the first quarter but down a tick from $28 billion in Q2 a year ago.
“The second quarter was another strong quarter, by all measures, for UWM and the wholesale channel,” says Mat Ishbia, CEO and chairman of UWMC. “We collectively continue to dominate the current purchase market while investing and preparing for lower rates ahead.
“Our momentum is building, with margins and production both up year over year, and our focus remains on our best-in-class people, process, and technology. UWM and the mortgage broker community are in a position of strength. With wholesale channel market share at a 15-year high (26.6 percent), we are in a prime position to capitalize and grow when rates inevitably drop. UWM has never been as prepared for the upcoming opportunity as we are now.”
For the 15th consecutive quarter, the company’s board of directors declared a cash dividend of 10 cents per share on the outstanding shares of Class A common stock.
The company says it continues to invest in increasing consumer awareness around the benefits of working with an independent mortgage broker.
UWM reports that it continued to expand its presence in the AI space during the quarter with the launch of ChatUWM, an AI-powered smart search designed to support independent mortgage brokers and UWM team members.
It also launched TRAC+, a service allowing UWM to handle everything throughout title review, closing, and disbursement. As a result, brokers have the option to close the loan without working with a title company or a settlement agent.
