UWM Releases 2023 Results, CEO Emphasizes Strength Of Broker Channel


The chairman and CEO of United Wholesale Mortgage says they will continue to assert market dominance in 2024 as the company remains 100% committed to the success of the broker channel.

Mat Ishbia spoke during an earnings call on Wednesday after leaders at UWM reported a net loss in 2023 of $69.8 million – inclusive of a $854.1 million decline in fair value of MSRs – and a diluted loss per share of $0.14. In 2022, the company’s net income was $931.9 million.

Total loan originations for 2023 were $108.3 billion, of which $93.9 billion was purchase volume. In comparison, originations were at $127.3 billion in 2022.

Ishbia started his comments by saying 2023 wasn’t one of the company’s best years financially but it will stand out from a dominance perspective.

“It was our second year as the number one overall lender, it was our third consecutive year as the number one purchase lender, and our ninth consecutive year as the number one wholesale lender. As you’ve heard me say many times before, the best mortgage companies shine in high-rate markets and that is exactly what we have done,” Ishbia said.

Ishbia said this performance is clear evidence of the strength of the broker channel. He said that loan officers continue to join the broker channel and to give them a competitive advantage, UWM is investing in technology that helps with speed, price, and process.

Ishbia said since the beginning of 2023, they have grown their team by about 15%, and they look forward to even more growth in 2024.

During a question and answer session, Ishbia was asked how low the 30-year rate has to go to spur any kind of growth in the refinance market. He said that once rates reach 5.75% to 6.25%, there will be more refi activity because there have been a couple of years now where people have been taking out loans at 6.5% to 7.5%.

Ishbia said once rates hit 5.99%, there will also be an upswing in purchases.

Ishbia was asked about the legal actions being taken against the National Association of Realtors and what challenges or opportunities that might create for brokers. He said real estate professionals and brokers are tied at the hip because they are on the ground talking with consumers and this could be a new opportunity for both sides to grow their business.

Ishbia said real estate professionals, like mortgage brokers, are resilient.

“It’s too early to really get a read on what will happen, but I do think that usually people that are very involved in, that are very in the weeds like UWM is, and like brokers are, and real estate agents, they usually capitalize on change more than get hurt by change,” Ishbia said.

In his December “3Points With Mat Ishbia” video, the CEO said that consumers will still pay for the expert advice of real estate professionals, even if the legal actions force changes within the industry.

Read More Articles:

UWM’s Ishbia Shows Support For Real Estate Agents In Wake Of Legal Actions

Friends Are Buying Homes Together

Renters Feel Bad About Their Finances, But It’s Cheaper Than Owning

Sign up for our free newsletter.