UWM Holdings Corp. in Pontiac, the indirect parent of United Wholesale Mortgage, today reported the company earned $180.5 million in net income for Q1 of 2024 and saw total loan origination volume reach $27.6 billion compared to $22.1 billion in Q1 2023.
The net income volume came after a net loss of $461 million in Q4 2023 and a net loss of $138.6 million in Q1 2023.
“We continue to see positive results from our strategy and investments,” says Mat Ishbia, chairman and CEO of UWMC. “Both volume and margin are strengthening, and we delivered increased volume performance relative to the fourth quarter of last year. Additionally, despite being in a higher rate environment, we originated 24 percent more loans than we did in the first quarter of 2023.”
The purchase volume of $22.1 billion was higher than Q1 2023 despite all the industry talk of higher interest rates and lack of inventory, says Ishbia. This is reflective of the overall health of the business and soundness in its strategy he adds.
“I am confident the strong momentum we’ve seen in the broker channel will remain on an upward trajectory and UWM and mortgage brokers will continue to win,” says Ishbia.
The purchase originations of $22.1 billion in Q1 is a UWM record for first quarter purchase volume. The company reported its total equity of $2.5 billion at the end of the quarter, compared to $2.5 billion at the end of 2023, and $2.9 billion at the end of the first quarter of 2023.
Unpaid principal balance of Mortgage Servicing Rights (MSRs) of $229.7 billion with a With Approved Credit (WAC) of 4.58 percent at the end of the quarter, compared to $299.5 billion with a WAC of 4.43 percent at the end of 2023, and $297.9 billion with a WAC of 3.66 at the end of Q1 2023.
The company reported it ended Q1 with approximately $2.9 billion of available liquidity, including $605.6 million of cash, and $2.3 billion of available borrowing capacity, which includes $1.8 billion under lines of credit secured by agency and Ginnie Mae MSRs, and $500 million under an unsecured line of credit.
First quarter business and product highlights included the launch of the company’s Mortgage Matchup — a new and improved version of the site formally known as FindAMortgageBroker.com.
Mortgage Matchup was designed to be a consumer-facing website geared toward homebuyers and real estate agents and offer educational material around the home buying and refinancing process, along with a searchable database of independent mortgage brokers.
The company also reported success with its Refi 100 — A 100-basis point pricing incentive on any note rate for conventional rate and term refinances. This pricing incentive has reportedly helped independent mortgage brokers who work with UWM create refinance opportunities with their borrowers.
UWM also is covering the cost of hard credit report pulls for its broker partners. This initiative aims to combat the impact of increasingly high credit report costs, an out-of-pocket expense for brokers.
The company reported it anticipates second-quarter production to be in the $28 billion to $35 billion range, with a gain margin from 85 to 110 basis points.
For the 14th consecutive quarter, the company’s board of directors declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on July 11, to stockholders of record at the close of business on June 20. The board also approved a proportional distribution to SFS Corp., which is payable on or about July 11
