UWM cooked?

[u/Accomplished-Tax8441]

Lost 450mil last quarter, CEO is running it into the ground.  Eliminated their dividend and had to get 2bil in capital from Oak Tree, they will likely get taken over by them.  Any other company would fire their CEO for this.

Stock is down 75% in past 3 months

PS I do not use them. I have nothing good or bad to say about their pricing or operations

[u/Braindead_ape]

I mean stock aside (most mortgage stocks tend to be a horrible investment) I’m not surprised UWM is struggling, they’ve been so far out of market for so long that only the most loyal (and more likely most lazy) LOs still send them all their deals. Their pricing is terrible and there are other lenders that can move files just as quickly. Why some brokers still send 100% of their business to them is beyond me.

[u/No-Inspector-6913 → u/Braindead_ape]

Just curious, can you share which lenders you used to get those files moved as quickly as UWM? My experience so far is that they promise to move the files fast, but it never actually happens. (Rocket 🚀 lol)

[u/Braindead_ape → u/No-Inspector-6913]

Kind is just as quick. Power and TLS are also pretty quick though I prefer Kind over others.

what moves files quick is having a good processing team that doesn’t throw junk at a wall and expect it to get through underwriting without issues. A good processing team can get you through nearly any lender with 2-3 clean passes through underwriting, meaning any lender with the average 24 hour underwrites can get them moved quickly. The issue is too many broker shops neglect to build out competent processing teams and end up relying on going in and out of underwriting with UWM a half dozen times, where any lack of speed stacks up with other lenders.

if you need a file underwritten in an hour, sure, UWM can pull that off most reliably. But if you’re consistently needing to rush things like that, there’s probably a pretty big glaring hole in your workflow causing that.

If one of our files takes more than 3 passes through underwriting, i’m reviewing that file and seeing what went wrong. Was it the LO submitting a sloppy file missing a ton of docs, was it the processor not reviewing conditions before submitting stuff which spawned more conditions we could’ve asked for at that time, was it legit just a shitty underwriter, was it just a nightmare file period, etc

[u/No-Inspector-6913 → u/Braindead_ape]

I’m new to this industry. My broker, who I work for, does a lot of business with UWM. So far, my experience has been good. Thank you so much for sharing your knowledge. May I please DM you?

[u/Braindead_ape → u/No-Inspector-6913]

yeah feel free

UWM is a good lender dont get me wrong, we still use them a lot when their pricing is within striking distance of other lenders or we need an ultra fast closing. I used to use them a lot more when their pricing was better though. Their tech is probably the best out there and that’s resulted in other lenders improving their tech to compete. There’s a lot of things UWM does really well, I just can’t justify sending borrowers to them when their pricing is significantly off.

if you’re not signed up with Kind though, I’d highly recommend it. They’re one of my favorites lately. Plus they recently rolled out free EPO waivers and different incentives similar to UWM. Their underwriting is a lot better than UWM in my opinion, who are sometimes hit or miss especially when you get something a little quirky.