UWM Reports Positive Q1 Earnings, New Record For Purchases

UWM Holdings Corporation, the parent company of United Wholesale Mortgage, reported positive Q1 2024 results, including a company record for purchase originations.

The company saw total loan origination volume jump by 13.1% from last quarter, soaring to $27.6 billion. That’s up 23.76% YOY. 

Of that total, purchases accounted for $22.1 billion, a first-quarter record for the company.

UWM’s net income was $180.5 million, including a $15.6 million decline in the fair value of MSRs and diluted earnings per share of $0.09.

“We continue to see positive results from our strategy and investments. Both volume and margin are strengthening and we delivered increased volume performance relative to the fourth quarter of last year,” Chairman and CEO Mat Ishbia said.

“Even more impressive is the fact that our purchase volume of $22.1 billion was considerably higher than Q1 2023 despite all the industry talk of higher interest rates and lack of inventory. This is reflective of the overall health of our business and soundness in our strategy. I am confident the strong momentum we’ve seen in the broker channel will remain on an upward trajectory and UWM and mortgage brokers will continue to win.”

Total equity equaled $2.5 billion, the same as Q4 2023 and down from Q1 2023.

At the end of the quarter, UWM’s available liquidity was $2.9 billion, including $605.6 million of cash and $2.3 billion of available borrowing capacity, which includes $1.8 billion under lines of credit secured by agency and Ginnie Mae MSRs and $500 million under an unsecured line of credit.

It expects Q2 production to be between $28 and $35 billion, with a gain margin of 85 to 110 basis points.

UWM recently came under fire in a scathing report from Hunterbrook Media claiming that at least $39 billion in mortgages were referred to the company by brokers who refer more than 99% of their business to UWM, throwing these brokers’ “independent” relationships with the lender into question.

The authors estimated that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found them typical loans.”

Hunterbrook, a hedge fund/newsroom crossover that makes trades based on stories it uncovers, disclosed placing a short position on UWM and a long position on Rocket Mortgage before publishing its article.

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