By JARED WHITLEY
Leaders at a mortgage broker caught up in litigation over United Wholesale Mortgage’s “All In” ultimatum say they never agreed to be in an exclusive relationship with Mat Ishbia’s company.
Lawyers for UWM filed suit against Atlantic Trust Mortgage Corporation in January, claiming they submitted at least 71 mortgages to rivals Rocket Mortgage or Fairway Independent Mortgage, causing about $355,000 in damages.
If Atlantic Trust wanted to work with other lenders, they argued, it needed to submit written notice that it was terminating its business with UWM. That is standard under Ishbia’s ultimatum, which has been controversial since it was introduced in March 2021 because it forces brokers to stop sending loans to Rocket and Fairway if…
By JARED WHITLEY
Did Mat Ishbia win another battle in the “Broker War?”
That appears to be the underlying message from Fairway Independent Mortgage Corporation, where leaders announced last month they would be shutting down their wholesale platform. Although CEO and Founder Steve Jacobson described the move as a “business shift, nothing more, nothing less,” about 100 people are expected to lose their jobs as a result.
“The people who have run Fairway’s Wholesale Department are some of the most talented, humble people in the business and will be a huge value add at their next mortgage home,” Jacobson said in a statement. “We want to thank our entire amazing wholesale team for its dedication and professionalism over the years.”…
By STEPHEN L. MILLER
The courtside theatrics of Phoenix Suns owner and sports thespian Mat Ishbia are more proof that the NBA is turning into professional soccer on the hardwood.
Soccer is notorious for players who practice the art of the flop: Flailing and falling as if in the throes of injury, only to magically recover once the whistle has been blown in their favor.
On Sunday night, however, the Jon Lovitz routine (“I’m an actor!”) made its way from the players to ownership.
With just over two minutes to play in the Suns’ eventual win, their guard Josh Okogie fell into the courtside stands while attempting to retrieve a loose ball.
The ball found itself in the hands of…
By KIMBERLEY HAAS
The executive vice president of Rocket Pro TPO told brokers across the country on Monday that they are willing to indemnify those who choose to fight United Wholesale Mortgage’s anti-competition ultimatum.
During a live-streamed Ignite Live event, Mike Fawaz said he believes the ultimatum was one of the worst things to happen to independent mortgage brokers in 50 years.
“The ultimatum uses lawyers and contracts to limit choice – both for the broker and for the clients the broker services,” Fawaz said. “There’s no other way to put it – the ultimatum is immoral, reduces broker incomes, and increases the rates the clients of brokers will pay.”
Fawaz said that they stand behind brokers who want to…
A Florida real estate broker filed a federal lawsuit against United Wholesale Mortgage’s parent company and CEO Mat Ishbia over the launching the Broker Wars, in which Ishbia forbade brokers from doing business with two competitors if it wanted to continue to work with UWM. The lawsuit, filed in U.S. District Court in Jacksonville, alleges UWM issued its ultimatum “in a desperate attempt to stifle competition” and to “mitigate its acknowledged risk of losing market share.” UWM announced in April that 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. Ishbia charged the two companies…
United Wholesale Mortgage CEO Mat Ishbia went on CNBC on Wednesday to assert he is the good guy in the BrokerWars by standing up for brokers and “for what is right.” “I know how different people want to portray it, but the decision was not about doing things exclusively,” Ishbia said on an interview on CNBC. “We basically said ‘Hey mortgage brokers, 12,000 of you guys, if you’re partnering with Rocket, they’re out there doing things – maybe you call it underhandedly, maybe in a gray area, to affect consumers and brokers.’ What we’re saying is, listen I can’t stop them, but if you’re going to work with them, don’t work with us.” UWM announced earlier this month that it will force brokers to…
Like Rocket Mortgage, Fairway Independent Mortgage is reporting increased interest from brokers after United Wholesale Mortgage launched the Broker Wars. HousingWire reported today: Since UWM president and CEO Mat Ishbia appeared on Facebook Live on March 4 and announced that brokers could not work with Fairway and Rocket Mortgage and still do business with UWM, Fairway has seen a dramatic uptick in business, according to its CEO, Steve Jacobson. “We typically had one or two inquiries a week for the broker channel,” said Jacobson, who founded the lender in 1996. “We’re up over 100 inquiries since March 4.” Fairway, which did about $3.5 billion in the wholesale channel in 2020 (compared to about $62 billion in retail), lost roughly 5%…
So, who won the Broker Wars on Day 1? Depends on who you ask. The Issue Earlier this month, United Wholesale Mortgage issued an ultimatum to mortgage brokers across the country: Either sign an agreement that forbids them from doing business with Rocket Mortgage and Fairway Independent Lending or lose the ability to do business with UWM, the largest broker mortgage channel in the country. If a broker signs the agreement with UWM and then originate a loan with Rocket or Fairway, they would be subject to a $50,000 fine. The deadline to sign the agreement was Monday. What Happened Monday? The Detroit News reported Tuesday that roughly 65 percent of 4,600 independent mortgage brokers took UWM’s side in the dispute, signing an agreement…
A consumer group launched a campaign designed to raise awareness among policymakers about the Broker Wars in an effort to put pressure on United Wholesale Mortgage over their refusal to work with brokers who do business with two competitors. The Consumer Action for a Strong Economy created “Save Broker Choice,” which urges the public to contact state and federal representatives over the broker ban. “The move reduces the number of companies that mortgage brokers are allowed to work with and, in turn, impacts the homeowners, prospective homebuyers, and those looking to refinance who are looking to secure the best interest rates and financing terms,” CASE says on its website. “Simply put, limiting options for brokers will cause consumers to lose out.…
Good morning! Today is Monday, March 15. The IRS began sending its first round of stimulus checks. Wells Fargo is getting backlash after announcing that its direct deposit customers won’t see stimulus funds in their accounts until March 17. The mayor of Miami Beach says too many people are coming to his town for Spring Break and not wearing masks. Today is a big day in the Broker Wars of 2021. This is the day United Wholesale Mortgage says brokers can no longer do business with Rocket Mortgage and Fairway Independent Mortgage if they want to continue work with UWM. The Mortgage Note has covered the Broker Wars from the start. Here is a quick refresher on how we got…
