UWM Holdings Corp., the publicly traded indirect parent of United Wholesale Mortgage in Pontiac, today announced third-quarter 2024 net income of $31.9 million, which is down compared to $76.3 million in Q2 and from $300 million during the same period in 2023.
The results come from an increase in mortgage originations — $39.5 billion in Q3, compared to $33.6 billion in Q2 and $29.7 billion in Q3 2023. Purchase originations accounted for $26.2 billion this quarter compared to $27.2 billion last quarter and $25.9 billion a year ago.
UWM reported a total gain margin of 118 bps in 3Q24 compared to 106 bps in 2Q24 and 97 bps in Q3 2023.
“When looking at Q3, I am incredibly proud of our performance and two things jump out at me,” says Mat Ishbia, chairman and CEO of UWM. “First, we exceeded both our volume and margin guidance despite mortgage rates remaining higher than anticipated for most of the quarter. But a dip in rates for just a few weeks pushed us higher than we expected and provided a glimpse into the future.
“Second, UWM is on pace to have record purchase volume in 2024 despite a generationally slow existing home sales market.”
Ishbia also says the broker channel continues to “dominate the purchase market,” and the company’s results in the quarter demonstrate “how well UWM and the channel are positioned to capitalize on the inevitable increase in refinance volume when it comes.”
“Right now, UWM is so much better positioned than we were prior to the last refinance boom. We have more capacity, more advanced technology, and even better service than we could offer our broker partners at that time,” he says. “Simply put, our operational fitness is at an all-time high and you’ll only see us accelerate from here.”
Other highlights from UWM’s third-quarter report include:
- Adjusted EBITDA of $107.2 million in 3Q24 compared to $133.1 million in Q2 2024 and $112.1 million in Q3 2023.
- Total equity of $2.2 billion at Sept. 30, 2024, compared to $2.3 billion at June 30, 2024, and $3.1 billion at Sept. 30, 2023.
- Unpaid principal balance of MSRs of $212.2 billion with a WAC (Weighted Average Coupon) of 4.56 percent at Sept. 30, 2024.
- $189.5 billion with a WAC of 4.31 percent at June 30, 2024, and $281.4 billion with a WAC of 4.20 percent at Sept. 30, 2023.
- Ended Q3 2024 with approximately $2.5 billion of available liquidity, including $636.3 million of cash and available borrowing capacity under our secured and unsecured lines of credit.
