Lending reports

United Wholesale Mortgage Reports First Quarter Earnings Amid Rising Interest Rates

United Wholesale Mortgage in the Pontiac experienced lower net income and loan volume in the first quarter of 2022 compared to the first quarter of 2021. // Courtesy of UWM

UWM Holdings Corp., the publicly traded indirect parent of United Wholesale Mortgage of Pontiac, today announced its results for the first quarter (Q1) of 2022, which showed lending volume of $38.8 billion. , compared to $49.1 billion in Q1 2021.

“This quarter, we have demonstrated that our business can continue to be profitable in very different market conditions than we have experienced over the past two years,” said Mat Ishbia, President and CEO of UWMC. “We have earned this position by building a business over the past 36 years that can take advantage of what the market offers.

“We are seeing independent mortgage brokers increasing both their market share and their population of loan officers. Our scale and agility, coupled with the dynamics of the broker channel, strengthens our ability to further separate ourselves from the pack. »

Other highlights include net income of $453.3 million, down from $860 million in the first quarter of 2021, and diluted earnings per share of $0.22, down from $0.33 from one year to the next. Loan origination volume included $19.1 billion in purchase volume, a 56% year-over-year increase. First quarter net income included a $172.0 million increase in the fair value of mortgage servicing rights (MSR).

The company reported a total profit margin of 99 basis points (bps) in 1Q22, compared to 219 bps in Q1 2021. Total equity was $3.2 billion at the end of the quarter, up compared to $2.8 billion last year. MSR principal outstanding balance increased to $303.4 billion with a weighted average coupon (WAC) of 3.04%, from $221.0 billion with a WAC of 3.00% year-on-year the other.

BOLT, UWM’s latest underwriting technology saw its adoption increase by approximately 52% between the fourth quarter (Q4) of 2021 and the first quarter of 2022. The technology reduced the application of clear to close (CTC) on conventional loans of about 4 calendars on average. days, while improving underwriting efficiency.

The company maintained an average CTC of approximately 18 business days, while management estimates an industry average of 43 days during the fourth quarter of 2021.

“UWM has built a strong business that will continue to thrive in any market environment,” says Ishbia. “This Buy Marketplace will act as a catalyst for the accelerated growth of the Broker Channel. Brokers are experts in buying transactions, making mortgages faster, easier and cheaper for borrowers across America.