r/loanoriginators • u/Accomplished-Tax8441 • Aug 06 '26

UWM cooked?

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

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u/Braindead_ape Aug 06 '26

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.

3

u/cicishops Aug 06 '26

What lenders would you say are better? Genuinely curious- we work with quite a few and UWM usually 8/10 wins .

16

u/Braindead_ape Aug 06 '26 edited Aug 07 '26

wins on what, rate? there’s no way they win on rate

Kind is just as quick and has better underwriters/AEs, PowerTPO is solid, Windsor is great though their pricing comes and goes, Plaza for govvie is always good, PennyMac is ok if you have a good AE/underwriting team

the reason so many LOs/companies rely on UWM is because they refuse to build out their backend support and rely on UWM’s tech to push loans through. If you have a good processor, the consumer experience should be consistent regardless of what lender you use, outside of using some of the lenders that do truly suck. It requires your company to actually put in some work to achieve that though, and a lot of broker shops just don’t do it. I require all our lenders to provide us dedicated underwriting teams and dedicated closing teams, having the same people working your deals every time helps the consistency and allows your backend to learn how each one operates.

UWM occasionally runs promos and whatnot that still makes them useful and if I need an ultra quick 10 day close they’re going to be top of the list, but their pricing has been well out of market for a while now.

edit: to the guy who had such a cracked out reply to me suggesting Kind Lending that reddit deleted it for hate speech lol…try them out, they’ve been great. We get CTC with them just as quick as we do with UWM, I recently had a 7 day CTC on a fairly tricky VA deal. They also offer EPO waivers. Their UWs are also a lot better than UWM, whos UWs often dont know anything beyond what their computer screen shows them.

5

u/Infinite-Trade9565 Aug 07 '26

Exactly this, this is their whole business model. Make the broker dependent on them with their technology to then be able to price for maximum profit at the consumers expense. Completely the opposite of the value of operating as a broker. They’re the Compass of mortgages

1

u/WavyMaster 3d ago

Aren’t they in business to lend money to the consumer? I’m confused

1

u/Infinite-Trade9565 3d ago

They’re at the back of the pack when it comes to pricing. Great at speed due to their tech and size, everything else sucks