With declining stock performance, Southeast Michigan mortgage lenders adjust to new dynamic
With declining stock performance, Southeast Michigan mortgage lenders adjust to new dynamic
Industry analysts increasingly skittish about mortgage lenders
Interest rates ticking up, cutting into margins
NYSE and Crain s Detroit Business
Michigan’s mortgage companies debuted on the stock market to great fanfare. From left, a contingent from Rocket Companies including Chairman Dan Gilbert and CEO Jay Farner gathers near the New York Stock Exchange during the company’s debut on the public markets Aug. 6, 2020; NYSE Home Point Mortgage debuted on the Nasdaq Jan. 29; and United Wholesale Mortgage was the second of the three mortgage companies to hit the market, on Jan. 22.
UWM reports 72 percent profit margin, misses on analyst estimates
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With a reported quarterly profit of $860 million on $1.19 billion in revenue for the first part of 2021, United Wholesale Mortgage Corp. will move to buy back shares and issue a dividend to investors.
The Pontiac-based wholesale mortgage lender reported earnings Monday afternoon, its first full quarter as a public company since finalizing a reverse merger in late January and debuting on the public markets (NYSE: UWMC).
The reported earnings amounts to a profit margin of just over 72 percent. For the same quarter last year, the company reported net income of $20 million.
Both UWM and Rocket Mortgage claim victory as brokers choose sides
Both UWM and Rocket Mortgage claim victory as brokers choose sides
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UWM President and CEO Mat Ishbia: “We’re going to be able to look back at this as a pivotal moment that helped catapult independent mortgage brokers’ growth.”
The specific economic outcome of a feud between two Southeast Michigan mortgage lenders remains unclear, but officials with both United Wholesale Mortgage Corp. and Rocket Mortgage were claiming victory Wednesday.
Pontiac-based UWM earlier this month gave an ultimatum that brokers must halt doing any business with Detroit-based Rocket and one other lender if they wish to keep doing business with UWM. The outcome of that ultimatum has been nothing short of successful, according to UWM executives.
UWM to lose at least 1,000 brokers as part of Rocket Mortgage ultimatum crainsdetroit.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from crainsdetroit.com Daily Mail and Mail on Sunday newspapers.
Battle between Rocket, UWM rattles brokers, but competitors see an opportunity in skirmish
The ultimatum has put a spotlight on the divide in the mortgage industry
One independent broker says the point of being a broker is to give our customers choice
Crain s Detroit Business collage from Bloomberg, NYSE, Crain images
United Wholesale Mortgage Corp. headquarters in Pontiac (clockwise, from top left); Mat Ishbia, president and CEO of United Wholesale Mortage; Rocket Companies sign on Woodward in Detroit; and Dan Gilbert, founder of Rocket Mortgage.
The line in the sand for the booming mortgage sector has been drawn by Mat Ishbia, but for some in the industry, the decision of which side to take is fraught.