By KIMBERLEY HAAS
The CEO of United Wholesale Mortgage says they are investing in technology and hiring new team members in preparation for a turn in rates.
Leaders at UWM Holdings Corporation announced their third-quarter results on Wednesday. Total loan origination volume was $29.7 billion, of which $25.9 billion was purchase volume.
Net income was reported at $301 million, which includes a $92.9 million increase in the fair value of mortgage servicing rights and diluted earnings at $0.15 per share. This was the second consecutive quarter of profits for UWM despite industry-wide challenges.
Mat Ishbia, chairman and CEO of UWMC, said in a statement that the strength of the company and the broker channel is on full display.
“While others choose to dwell on high mortgage rates and low housing inventory, at UWM we remain focused on growing our market share and the broker channel. We are investing in new technology and hiring new team members to ensure that we are prepared for the eventual turn in rates. In the meantime, we expect to continue to generate significant purchase volume and remain highly profitable,” Ishbia said.
During a call with investors, Ishbia said almost no other mortgage lender in the country can say they are operationally profitable.
“I hope it is now clear, more than ever, that we are winning,” Ishbia said. “We are hiring. We are growing.”
Ishbia said they hired more than 1,000 loan officers in Q3, and plan to add more people before the end of the year. He remained confident about the company’s outlook despite being asked questions about affordability and the possibility of a recession.
Ishbia highlighted the fact that shareholders have received a dividend for 12 consecutive quarters. A cash dividend of $0.10 per share on outstanding shares of Class A common stock is payable on Jan. 11.
When will mortgage rates start to decline for good?
Rates took their biggest one-week drop in more than a year last week, with the Mortgage Bankers Association reporting the contract rate on a 30-year fixed mortgage fell 25 basis points to 7.61%.
Market watchers say the Federal Reserve’s decision to hold the federal funds rate steady this month was a contributing factor. But there is uncertainty in the short term as inflation forecasts are recalculated and officials decide whether to implement another .25% hike next month.
At the MBA annual convention and expo in Philadelphia last month, it was predicted that the Feds will start cutting rates next year. Although officials do not dictate mortgage rates, their decisions do influence them.
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