United Wholesale Mortgage is no stranger to controversy. Both the company and its chief executive Mat Ishbia have made headlines over the years on issues ranging from the firm’s treatment of its employees to its notoriously aggressive attempts to stifle competition.
In fact, the company is currently engaged in legal battles on multiple fronts. It’s facing a class-action lawsuit over allegedly forcing employees to work overtime without compensation, and legal challenges to its attempts to force mortgage brokers to stop doing business with major competitors like Rocket Mortgage and Fairway Independent Mortgage.
Now Ishbia appears to be teaming up with one of the most controversial figures in his corporate past: Disgraced mortgage executive Anthony Casa.
In late 2020, Casa was …
By KIMBERLEY HAAS The CEO of California-based America’s MoneyLine is fighting back after being slapped with a $2.8 million lawsuit from lending giant United Wholesale Mortgage. In a statement released on Friday morning, Shawn Nevin claimed that UWM uses illegal, anti-competitive practices. At issue is the “All In” policy implemented by UWM CEO Mat Ishbia. Ishbia said in a Facebook Live message last March that brokers who work with Fairway Independent or Rocket Mortgage could no longer work with UWM. “Mat Ishbia’s ‘ultimatum’ is a blatant and desperate attempt to maintain his company’s grip on the throat of mortgage brokers across the country,” Nevin said. “As he works tirelessly to craft a false narrative around being champions of brokers, his…
By KIMBERLEY HAAS Leaders at Bank of America say home loan applications initiated through their Digital Mortgage Experience accounted for 81% of total mortgage applications in 2021. That is up from 45% in 2020. Last year, Bank of America funded $53.7 billion in first mortgage loans through the Digital Mortgage Experience, 2.5 times their 2020 volume. People can use the digital tool to prequalify for loans, apply for a new mortgage, and refinance their existing mortgage. “Clients expect fast, smart digital tools that help make their banking, investing, and lending experience easy and convenient,” Matt Vernon, Retail Lending Executive for Bank of America, said in a statement. Vernon said that the combination of digital capabilities and support from lending specialists…
By KIMBERLEY HAAS Monthly asking rates for rentals increased an estimated 15.2% year-over-year in January, and some economists say this is accounting for a significant portion of recent inflation. Redfin is reporting that last month the average asking rent was $1,891, which is the largest annual jump since at least February of 2020. The national median monthly mortgage payment for homebuyers climbed by 25% year-over-year to $1,595. That is also the biggest increase in Redfin’s records. Redfin Chief Economist Daryl Fairweather noted that rising mortgage rates are shrinking more Americans out of the for-sale market, which will likely put increasing pressure on rents this year. “Moving right now is expensive, whether you’re renting or buying,” Fairweather said. “One of the only…
By DOUG OHLEMEIER Despite many employees working from home and companies adopting hybrid work models, investors are still attracted to the land of cubicles. While office suites aren’t as packed with workers as before the pandemic, the commercial market remains strong. “There is investor interest in office properties,” said Stephen Newbold, National Director in the U.S. office of research for Colliers International, a Toronto, Ontario-based global real estate services and investment management company. “We are at a stage where we can fairly confidently say that we’re not going back to those (2020) levels. It may fluctuate a little, but my overarching view is we are stabilizing on vacancies and space on the market.” Observers aren’t sure how the new work…
By DARIA BACHMANN United Wholesale Mortgage is facing more public scrutiny as court battles — and backlash from brokers — mount. The second-largest mortgage lender in the nation, UWM has come under criticism over how it treats both its employees and its customers. UWM announced in April it would force brokers to sign an agreement that they will not work with Rocket Mortgage or Fairway Independent Mortgage – or else be banned from work with UWM, the largest wholesale mortgage lender. Mortgage industry leaders called the ban “unethical and uncompetitive.” Bob Broeksmit, head of the Mortgage Bankers Association, said at the time, “MBA does not condone activities designed to thwart competition in the mortgage market and limit loan options available to borrowers.” UWM,…
“Million-dollar cities” skyrocketed in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Zillow found there are now 481 cities where the average home is worth $1 million or more, and an additional 49 cities could make the list by mid-2022 if home appreciation continues at its current rate. Typical home values jumped 19.6% in 2021 as homebuyers faced severe stock shortages, causing bidding wars that pushed prices up. Homeowners gained $2.6 trillion in tappable equity in 2021, up by 35% YOY for an aggregate total of almost $10 trillion. In Q4 2021 alone, tappable equity rose by nearly half a billion dollars. “Home price appreciation over the course of 2021 was…
Commercial and multifamily mortgage loan originations jumped in 2021 and are expected to continue booming in 2022, the Mortgage Bankers Association (MBA) reported at its 2022 Commercial/Multifamily Finance Convention and Expo. Originations rose 79% YOY in Q4 2021 and 44% from Q3. A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes found 2021 activity to be 67% higher than 2020’s. “The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales…
By KIMBERLEY HAAS It’s Super Bowl weekend and The Mortgage Note is taking a look at which city would win if Los Angeles and Cincinnati’s housing markets were pitted against each other. With sports commentators picking the Rams over the Bengals and the notoriously high-priced homes in the Los Angeles market, such as “The One” on sale now for $295 million, people might assume the California city would be the automatic winner. But that depends on how the two markets are lined up. As Tyler Sullivan says in his recent predictions for CBS Sports, both teams are worthy champions in their respective conferences and the Bengals have been a fantastic Cinderella story with their line-up of young faces. Is the same true for Cincinnati? Let’s look…
Despite an uptick in job numbers and an increase in personal incomes, there is still uncertainty about how the latest Labor Statistics Report will impact the housing market. The latest jobs report from the U.S. Bureau of Labor Statistics shows payroll employment growth as 467,000 in January and an increase of job growth at 1.8 million in the last three months of 2021. The report also shows an income increase of 5.7% since this time last year. In short, more people have jobs and nearly everyone is at least making a little more money. Elizabeth Rose is a Financial Planner and Lender with Mortgage 300 based in Dallas, Texas. She says the numbers show a lot of positive growth, but maybe not…
