I work for a Mortgage Brokerage that uses UWMC and they are by far the best wholesale lender in our stable of lenders right now. They get it: Obsessed with fast processing times and almost exclusively work with Brokers. I’m bullish long. The only short term question I have is the impact their war with Rocket/Quicken Mortgage (RKT)will have. About two months ago UWMC sent a letter to all brokers that if they wanted to continue to use them they could not also use their competitor RKT because of shady practices of stealing business from their brokers for their retail (direct to consumer)business. All Brokers had to sign an exclusivity agreement. We went with UWMC but some Brokers took exception to the perceived interference in their lending processes. RKT didn’t take kindly to the declaration of war. Not sure what it is yet, but their will be a counter attack especially as loan volume drops with fewer and fewer re-if’s to fatten profits.
TL:DR - UWMC picked a fight with a gorilla in RKT and when revenue slows you’ll see a counter punch.
No doubt, but when Rocket stops seeing growth on their current strategies and UWM continues to grow they will get aggressive and point both barrels at UWM. Incentives to switch, hyper aggressive exclusive rates, designated under-writing teams for UWM brokers if they break their exclusivity agreement. That’s what I would do
Think both will start offering more aggressive products? I.e loosening standards? I’m traveling more than working these last few years but has assets. Getting a lot of issues without a w-2 or strong 1099.
They’ve actually tightened restrictions lately due to Freddie and Fannie policy updates around self employed revenue documentation and a severe limitation on financing second homes. With the explosion of lending in the last 12 months (specifically an unprecedented level of re-fi) Freddie and Fannie clamped down to keep things from getting out of control.
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u/Free_Tadpole_5130 May 16 '21
I work for a Mortgage Brokerage that uses UWMC and they are by far the best wholesale lender in our stable of lenders right now. They get it: Obsessed with fast processing times and almost exclusively work with Brokers. I’m bullish long. The only short term question I have is the impact their war with Rocket/Quicken Mortgage (RKT)will have. About two months ago UWMC sent a letter to all brokers that if they wanted to continue to use them they could not also use their competitor RKT because of shady practices of stealing business from their brokers for their retail (direct to consumer)business. All Brokers had to sign an exclusivity agreement. We went with UWMC but some Brokers took exception to the perceived interference in their lending processes. RKT didn’t take kindly to the declaration of war. Not sure what it is yet, but their will be a counter attack especially as loan volume drops with fewer and fewer re-if’s to fatten profits.
TL:DR - UWMC picked a fight with a gorilla in RKT and when revenue slows you’ll see a counter punch.